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2016 (9) TMI 1324 - AT - Income TaxAddition on account of addition to partners’ capital - Held that:- Both the partners are assessed to tax separately. CIT(Appeals) specifically noted in his findings that partners have made deposit in the accounts of the assessee firm therefore, when the partners of the assessee firm have accepted having made deposit in the assessee's firm in their capital account, no addition could be made against the assessee firm of the aforesaid amount. Since both the partners are assessed to tax separately, therefore, these amounts may be considered in their individual cases. The impugned addition in the hands of the assessee firm is, therefore, wholly unjustified. The judgements relied upon by ld. counsel for the assessee above squarely support the case of the assessee that addition is wholly unjustified in the hands of the assessee firm. Set aside the orders of authorities below and delete the addition in the hands of the assessee firm. - Decided in favour of assessee.
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