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2014 (7) TMI 504 - ITAT AHMEDABADDeletion of unexplained capital – Capital introduced by partners of firm – Held that:- The source of funds cannot be held as unexplained only because the name as appearing in the balance sheet of Shri Hiteshbhai D.' Patel shows loan from Shri Jagdish Vasania (Indl.) whereas it has been actually given by Shri Jagdish Vasania & Co., firm - The bank statement shows that the funds came from Shri Jagdish Vasania & Co., a fact not disproved by the AO and therefore it cannot be considered as unexplained in the hands of the assessee firm - sources of capital introduction by Shri Hiteshbhai D. Patel is held as explained in view of the evidences produced - As regards, Shri Maganlal Jhaviya, it is seen that he has introduced an amount of ₹ 2,00,000/- as capital into the firm - no other sources of income on fund has been shown as available to him for introduction - 3 acres of land, however, fertile will not be able to generate income leave alone any savings so as to enable this person to introduce capital of ₹ 2,00,000 - source of fund introduced by this partner is not explained, and addition made u/s.68 of the Act is therefore upheld - The addition u/s 68 of the Act treating capital introduction as unexplained is therefore sustained to the extent of ₹ 2,00,000/- only - CIT(A) after considering the submissions of the Assessee and the Remand Report received from AO, by reasoned and detailed order granted substantial relief to the Assessee - Revenue could not controvert the findings of CIT(A) by bringing any contrary material on record – thus, there is no reason to interfere with the order of CIT(A) – Decided against Revenue.
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