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2022 (11) TMI 326 - AT - Income TaxAddition being loss from commodity trading when the assessee failed to bring any supporting evidence on record - HELD THAT:- We have given a thoughtful consideration to the aforesaid observation of the CIT(Appeals) and except for the fact, that the CIT(Appeals) though inadvertently had referred the date of the "remand report" of the A.O had however, rightly concluded that there was no justification on the part of the A.O to have declined the assessee's claim of loss from commodity trading. We, thus, finding no infirmity in the view taken by the CIT(Appeals), uphold his order to the said extent. Thus, the Ground of appeal No. 1 and Grounds of appeal No. (s) 4 & 5 (to the extent relevant to the issue) raised by the revenue are dismissed in terms of our aforesaid observation. Whether CIT(Appeals) had erred in vacating the treating by the A.O of the respective additions/credits in the partners capital account as the undisclosed investment of the assessee firm? - As the A.O in the course of the original assessment proceedings had not raised any query as regards the additions/credits in the respective capital accounts of the partners, therefore, as stated by the Ld. AR and, rightly so, the assessee remained under a bona-fide belief that no doubts were there in the mind of the A.O in respect of the same. We, thus, finding no infirmity in admission of the aforesaid documentary evidence as additional evidence U/rule 46A of the Income Tax Rules, 1962 by the CIT(Appeals), uphold his action to the said extent. For addition in hand which had been vacated by the CIT(Appeals), we find that the assessee had duly substantiated the respective sources from where both the partners had made addition/credits in their respective capital accounts - we not only principally concur with the view taken by the CIT(Appeals) that no adverse inferences as regards the additions/credits in the capital account of the partners was liable to be drawn in the hands of the assessee firm, but also even otherwise, are of a strong conviction that as the source of the respective addition/credits had duly been confirmed by the respective partners out of their duly explained sources, therefore, on the said count also, no addition was called for in its hand. On the basis of our aforesaid observation, we uphold the order of the CIT(Appeals) who had rightly vacated the respective additions that was made by the A.O as regards the additions/credits in the partners capital accounts - Decided against revenue.
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