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2017 (8) TMI 1133 - AT - Income TaxAddition u/s 68 - Unexplained capital contribution by the partners in the partnership firm - partners received the gifts - proving source of source - additions, if any, to be made in the hands of the respective partners or in the hands of the assessee firm - Held that:- The gifts are received by the partners who are separate income tax entities as distinct from the assessee firm and therefore, the addition for unaccounted / unexplained money, if any, which was to be made, could be made in the hands of the respective partners only and not in the hands of the assessee firm, since the assessee firm, at the relevant time, was not required to do so in view of the statutory provisions as contained in Section 68. - Decision in the case of Zafa Ahmad & Co. Vs. CIT [2013 (3) TMI 48 - ALLAHABAD HIGH COURT] followed. Revenue is unable to establish the fact that the capital contribution received by the assessee firm was unaccounted money of the assessee firm. Secondly, the assessee could not be expected to prove the source of source and addition which could be made on this account, could be made in the hands of the respective partners only. - additions shall stand deleted - Decided in favor of assessee.
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