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2023 (7) TMI 497 - AT - Income TaxAddition u/s 68 - introduction of capital by partners in assessee-firm - non-submission of creditworthiness and source of investment of partners - HELD THAT:- Considering the investment amount by the partners, the revenue authorities had added back u/s 68 due to the non - satisfactory explanation by the assessee. But the investment of the partners should be examined in the hands of the partners. The addition cannot be accepted in the hands of the firm. We respectfully relied on the order of M. Venkateswara Rao [2015 (3) TMI 153 - ANDHRA PRADESH HIGH COURT] and Odedara Construction[2014 (2) TMI 130 - GUJARAT HIGH COURT] and in the case ofVaishno Devi Refoils & Solvex[2018 (7) TMI 651 - SC ORDER]if Assessing Officer was not convinced about creditworthiness of partner who had made capital contribution, inquiry had to be made at end of partner and not against firm. Thus the addition amount is quashed. Accordingly, the grounds of the appeal of assessee are allowed.
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