Case Law Analysis
|Income Tax Appellate Tribunal
Section 68 IT Act | Share Application Money Validated Through Investor’s Tax Assessment & Direct Confirmation: ITAT Delhi
ITAT Delhi deleted a Rs 50 lakh addition under Section 68 after the assessee proved the identity, creditworthiness, and genuineness of share application money using the investor’s filed tax returns and direct verification from the investor company. This reinforces that documentary evidence from tax-compliant third parties, not just bank statements or board resolutions, can satisfy Section 68’s tripartite test - a critical precedent for real estate and startup firms raising equity capital.