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2014 (3) TMI 467 - HC - Income TaxDeletion made u/s 69 of the Act – Unexplained and ingenuine credit in the capital account – Held that:- The amount was own money of the assessee firm which was introduced by way of gift in the name of partner from a Non-Resident account – The decision in Jaspal Singh v. CIT [2006 (9) TMI 143 - PUNJAB AND HARYANA High Court] followed - NRI gift from a stranger was neither genuine nor valid - the assessee discharged onus on him to prove the genuineness of the gift - NRI gift could not be accepted as genuine unless the assessee was able to prove natural love and affection and financial capacity of the donor - The legal position involved clearly did not engage the attention of the Tribunal, deserved from it - partners of the assessee firm had not been maintaining their own books of accounts. Any credit found unexplained and ingenuine was to be accounted for in the books of accounts of the assessee firm only - sequelly such credit was to be treated as income of the firm for the year in such ingenuine and unexplained credits were found in its books of accounts - thus, the finding of the Tribunal and that of the CIT(A) had gone wrong in reversing the finding of the AO which are restored, as unexplained and ingenuine credit in the capital account of the partner Sat Pal Singh in the book of accounts of the assessee firm in absence of any separate account books having been maintained by the partners, was to be credited in the account of the assessee firm only – Decided in favour of Revenue.
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