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2014 (11) TMI 548 - AT - Income TaxAddition of unexplained deposit of credit in bank account u/s 68 - addition in the hands of partner - Addition u/s 69 when in the notice section 68 was mentioned - Books of account are not maintained – Held that:- There is no justification of the Department in treating the deposits in the bank pass book of the firm M/s Dixit & Company as unexplained income in the hands of the assessee who is a separate legal entity - even if no addition is justified u/s 68 of the Act, addition can be made u/s 69 of the Act in respect of deposit in bank account if the assessee cannot satisfactorily explain the source of deposit - merely because a wrong section has been invoked by the AO, the addition cannot be deleted and such order is not illegal and at the best it is irregular which can be regularized by substituting the correct section in place of wrong section - merely on the basis of these objections, it cannot be concluded that the firm is not in existence - any deposit in the bank account in the name of M/s Dixit & Co. cannot be added in the hands of the assessee and it can be examined only in the hands of the firm M/s Dixit & Co. – there was force in the claim of the assessee and it has been held that for deposits in the bank account in the name of M/s Dixit & Co., no addition can be made in the hands of this individual – thus, the entire matter is to be remitted back to the AO for fresh consideration – Decided in favour of assessee.
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