Section 68 Revisited

In a significant reaffirmation of settled jurisprudence, the Tribunal held that where the assessee has discharged its primary onus by furnishing documentary evidence of shareholders, the Revenue cannot make additions merely due to non-appearance of some investors or generalized concerns about source of source. 

The ruling emphasizes that suspicion, however strong, cannot substitute evidence. 

It also reinforces that the Department is free to proceed against shareholders independently but cannot tax the same in the hands of the company without substantive basis.