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2017 (6) TMI 1116 - AT - Income TaxAddition on capital contributed by partner of the firm - Held that:- Partner having admitted that he has made the impugned deposit with the assessee firm out of the amount received as gift, it is the partner and not the firm who is liable to be taxed by treating the said amount as undisclosed income even if the claim of gift said to have been received by him is rejected. See Commissioner of Income-tax Versus Metal & Metals of India [2006 (11) TMI 630 - HIGH COURT OF PUNJAB & HARYANA]. Thus delete the addition made in the hands of the assessee firm. Addition being unsecured loan raised by the firm from Smt. Anu Anand - Held that:- Considering explanation of the assessee in the light of the order of the Division Bench of the Tribunal in the case of Shri Vivek Jolly (2012 (11) TMI 1216 - ITAT CHANDIGARH) explanation of the assessee is accepted that creditor has withdrawn the amount of ₹ 2 lacs and ₹ 5 lacs in February,2006 which were available to her for making re-deposit in the same bank account. The Assessing Officer has not brought any evidence on record to prove that the amounts so withdrawn by the creditor in February,2006 have been utilized or spent anywhere else. Therefore, explanation of the assessee is accepted that the creditor has credit worthiness to advance a sum of ₹ 5,01,750/- to the assessee. Therefore, no addition can be made of this amount treating the same to be unexplained credit. Accordingly, orders of the authorities below are set aside and addition of ₹ 5 lacs is deleted.
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