Genuineness of Share Capital: ITAT quashes Rs. 2.62 Crore Addition u/s 68

The ITAT has ruled on the genuineness of share capital in a case where the addition was challenged. The tribunal emphasized that the taxpayer’s explanation regarding the source of funds was credible and reliable. The case concerned the assessment of share capital contributions, where the authorities had initially questioned the legitimacy of the funds. The ruling clarified that if the taxpayer can substantiate the origin of share capital, the same should be accepted. The tribunal's decision upheld the principle that mere suspicion of the source cannot justify an addition unless proven beyond doubt.