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2019 (6) TMI 1111 - ITAT AHMEDABADAssessment of partners v/s partnership firms - search u/s 132 - whether the profit would have been taxed in the hands of the partners if the partners would have collected the money out of their sources? - HELD THAT:- The issue raised by the assessee stands covered in his favor by the order of this tribunal in the case of Bhagwan bhai Karmanbhai Ajara [2017 (4) TMI 1450 - ITAT AHMEDABAD] in the given facts and circumstances of the case and on the basis of seized records, investment in “Samarpan Scheme" was made by USCKP from the funds receivecd from its members and therefore, the impugned addition is uncalled for in the assessee's hands. In the result, no interference is called for in the order of ld. CIT(A) who has rightly deleted the impugned addition. If the money would have been collected from the five individual partners out of their own resources then the profit arising from the sale would, have to be taxed in their individual hands in not in the hands of the firm. It is a fact that the Assessing Officer has assessed the income on sale of the land in the hands of the firm where the partners are not sharing the profits equally. The addition made by the Assessing Officer has not on sound footing. The same is hence deleted. - Decided in favour of assessee.
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