ITAT Holds Share Transfer as Genuine Despite ROC Discrepancies, Accepts Oral Family Arrangement and Book Entry as Valid Evidence

The Income Tax Appellate Tribunal (ITAT) has affirmed the genuineness of a share transfer despite discrepancies noted by the Registrar of Companies (ROC). Crucially, the ITAT accepted an oral family arrangement and book entries as valid evidence for the transfer. This ruling is significant as it acknowledges the validity of informal family agreements, particularly in closely held entities, alongside formal documentation. While ROC records are important, the ITAT's decision indicates that other compelling evidence, demonstrating the true intent and transaction, can prevail. This provides flexibility for taxpayers in proving the authenticity of internal family arrangements that might not always be immediately reflected in formal regulatory filings.