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2014 (2) TMI 515 - AT - Income TaxUnexplained credit Capital introduced by the partner in the firm - Held that:- The Assessee had satisfactorily explained the nature and source of capital introduced by the partner and had also proved even the source of source - all the partners are assessed to tax and the Assessee placed on record, the copy of the I.T. returns, personal balance sheets - From the computation of the income of the various partners placed on record, revenue pointed out that the interest on capital received from the firm has been shown by the Assessee as income and the same has also been allowed and the income on capital has also been allowed as expenditure by the Revenue Relying upon CIT vs. Ranchhod Givabhai Nakhaba [2012 (5) TMI 186 - GUJARAT HIGH COURT] - the order of the CIT(A) upheld - the Revenue could not controvert the findings of CIT(A) nor has brought any material on record in its support Decided against Revenue. Addition made u/s 69C of the Act Held that:- CIT(A) was of the view that only real income should be taxed and therefore there was no reason for determining income u/s. 69C when the expenses were actually recorded - even in principle the expenses found, which related only to six weeks and that too in a period of two months, cannot be averaged over the whole year as production is not at the same levels throughout the year and depends on several factors - If the unexplained expenditure made under section 69C is removed from the income, meager taxable income remains in the hands of Assessee - CIT(A) has noted that on the comparison of details of expenses recorded in the books and those mentioned in the loose papers - the expenses were recorded in the books except from some minor discrepancies for week ending 22.12.2007 - mismatch of data for one week cannot be extrapolated for the year Revenue could not controvert the findings of CIT(A) nor has brought any material on record in its support Decided against Revenue.
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