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2019 (4) TMI 607 - AT - Income TaxIncome From House Property OR Business income - assessee is the owner of the building comprising of 5 floors with common facility like air-condition plant, power back-up, lift, watchmen - fair market rent receipt - difference in the amount of rent charged by the assessee from the unrelated and related party - HELD THAT:- Rental income of the assessee is taxable under the head House Property at the fair market rent and not under the head Business and Profession. Unexplained cash credit u/s 68 - capital contributed by the partner to the firm as unexplained cash credit - addition in the hands of the partnership firm or partner - HELD THAT:- There remains no ambiguity that the assessee has shown contribution by the partner of the firm in the year under consideration. Now the question arises about the source of fund in the hands of the partner. Regarding this the law is settled that the partnership firm is not liable to justify the source of fund in the hands of the partner. In this connection we find support and guidance from the judgement of PCIT vs Vaishnodevi Refoils & Solvex reported in [2018 (1) TMI 861 - GUJARAT HIGH COURT] assessee has furnished the details with regard to the source of the capital introduced in the firm and the concerned partner had confirmed such contribution, the assessee had duly discharged the onus cast upon it. Thereafter, if the Assessing Officer was not convinced about the creditworthiness of the partner who had made the capital contribution, the inquiry had to be made at the end of the partner and not against the firm. No addition made in the hands of the partnership firm on account of the capital contributed by the partner of the firm to the firm. In case any justification is required for the source of fund in the hands of the partner, then partner in his individual capacity is liable to explain. There is no liability fastened on the assessee (firm) for the explanation about the source of funds in the hands of the partner. Hence we disagree with the order of the CIT (A) and accordingly direct to the AO to delete the addition made by him. - Decided in favour of assessee.
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