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2020 (4) TMI 15 - AT - Income TaxAddition on account of capital contributed by one of the partner u/s 69 - A.O. recorded the statement of Shri Jagdish Chander u/s 131 observed that Shri Jagdish Chander categorically denied having given any loan to Shri Manoj Kumar and that the assessee had not been able to controvert the statement given by Shri Jagdish Chander - HELD THAT:- In the present case it is an admitted fact that the Partner of the assessee firm made the contribution towards his capital account and explained the source for the same. As relying on METACHEM INDUSTRIES [1999 (9) TMI 21 - MADHYA PRADESH HIGH COURT], JAISWAL MOTOR FINANCE [1983 (2) TMI 47 - ALLAHABAD HIGH COURT], METAL & METALS OF INDIA [2006 (11) TMI 630 - HIGH COURT OF PUNJAB & HARYANA] and METAL & METALS OF INDIA [2006 (11) TMI 630 - HIGH COURT OF PUNJAB & HARYANA] when the Partner of the assessee firm accepted that he deposited the amount in the assessee firm as a share of his capital contribution and also explained the source of the deposits then the addition made in the hands of the assessee firm was not justified and if at all the A.O. was not satisfied from the explanation / source of the Partner, then the additions could have been made in the individual hands of the Partner if it was permissible under section 69 of the Act. In that view of the matter the addition made by the A.O. and sustained by the Ld. CIT(A) is deleted. - Decided in favour of assessee.
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