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2011 (5) TMI 680 - AT - Income TaxSource of capital introduced by the partners - Whether CIT(A) erred in not appreciating the facts that all the four partners were salaried persons and looking to their salary payments, it was not possible for them to save such a huge amount as credited in the capital accounts and if they had such huge savings, they have failed to furnish any evidences which may substantiate the claim of their savings - held that:- The identity of the partners and the evidence regarding sources of income has been placed before the lower authorities. All the four partners are stated to be assessed to tax on their independent income and have admitted the amount of money brought in by them in cash. There is nothing to suggest that the aforesaid amounts brought in by the partners were actually the income of the firm. When the assessee has explained the amounts as capital contributions by the partners, the AO is not justified in holding that the assessee has not explained the source. In case the Assessing Officer doubted the genuineness of the source, he should have considered the same in the hands of the partners only and not in the case of the firm. - Decided in favor of assessee.
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