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2013 (4) TMI 68 - HC - Income TaxUnaccounted Capital - introduction of capital by the partners - Section 68 - onus to discharge - Held that:- In the absence of any material to indicate that there were profits of the firm, the amount credited to the partners' accounts could not be assessed in the hands of the firm. Once the partners have owned that the monies deposited in their accounts are their own, the Income Tax Officer is entitled to and may proceed against the partners and assess the same in their hands, if their explanation is not found satisfactory. The assessee had discharged the primary onus which was on it by offering explanation, which has not been found to be incorrect or false in any manner - The interest of the revenue is also safeguarded as the Income Tax Officer has been given the liberty to consider the said credits in the hands of the partners if he is not satisfied with the sources of investment of cash credits in the accounts of the partners. - Decided against the revenue.
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