2013 (3) TMI 174 - RAJASTHAN HIGH COURT

Unexplained share capital - ITAT upheld the order of the CIT(A) in deleting the addition - Held that:- As decided in Shree Barkha Synthetics Pvt. Ltd case [2005 (8) TMI 67 - RAJASTHAN HIGH COURT] if the transactions were made through banking channel and existence of persons in whose names shares had been issued was shown, the assessee-company could not be held responsible to prove as to whether the person himself invested the money or some other person did so and the burden shifted on the revenue to establish that the investment came from the assessee company itself. It was also observed that if at all the investment made by the shareholders is to be added, the assessment has to be carried out in their case and not in the hands of the appellant company.

Thus the question as formulated does not even arise in this case because it remains settled with the consistent decisions of the Courts that even in case of doubt about subscribers to the increased share capital, the amount of share capital cannot be regarded as undisclosed income of the company - in favour of assessee.