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2023 (3) TMI 218 - HC - Income TaxAddition u/s 68 - unexplained loans taken by the partners - cash credits pertaining to the two partners of the appellant firm - HELD THAT:- We are of the view that issue raised in this appeal is squarely covered by the decision of this Court in M.Venkateswara Rao [2015 (3) TMI 153 - ANDHRA PRADESH HIGH COURT] which is binding on us. That was also a case where certain cash credits were advanced by the partners, which according to the revenue authorities remained unexplained and accordingly were added to the income of the firm. Unexplained cash credits would have to be assessed at the hands of the partners of the firm and not the firm itself. Such amounts could not have been treated as income of the firm by relying upon Section 68. We answer the substantial questions of law in favour of the appellant-assessee and against the respondent-revenue insofar the cash credits pertaining to the two partners of the appellant firm i.e., Smt. K.Sujatha and Sri K. Prabhakar Reddy only are concerned.
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