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2021 (4) TMI 195 - ITAT CHANDIGARHUnexplained income - Addition on account of the amount credited in the capital account of partner of the firm - Credit worthiness of the person making payment - CIT-A deleted the addition - HELD THAT:- The assessee explained the source of the partner for depositing the amount in the capital account. The said amount was received by the partner from her son who is NRI, the transaction was through banking channel out of the NRE saving bank account of her son, therefore the addition made by the A.O. was not justified - the amount was received by the assessee firm from the partner who explained the source for the same and if at all any addition was called for that was required to be made in the hands of the partner and not in the hands of assessee firm. On an identical issue in the case of ITO Vs. Nahar Singh Sadhu Singh [2001 (7) TMI 62 - PUNJAB AND HARYANA HIGH COURT] held that "the partner had the requisite amount to invest towards the capital account of the firm. Since no evidence had been pointed out against that finding the amount could not be assessed as income from undisclosed sources of the firm." also see METACHEM INDUSTRIES [1999 (9) TMI 21 - MADHYA PRADESH HIGH COURT] - Thus addition was rightly deleted by the Ld. CIT(A). Addition on account of amount received from Shri Ankush Gupta - explanation of source - HELD THAT:- It is not in dispute that the assessee received a sum from Shri Ankush Gupta through banking channel and the source of source was explained by the assessee by furnishing the documentary evidences to prove the credit worthiness of Shri Punit Gupta and Shri Akash Bansal from whom Shri Ankush Gupta received the amount. The said documents revealed that the amount of ₹ 32,00,000/- was received by Shri Ankush Gupta from his brother Shri Puneet Gupta who is the NRI and settled in UK. The said amount was transferred from the NRE account. The Assessee also explained the source of another amount of ₹ 9,50,000/- received by Shri Ankush Gupta from his cousin Shri Akash Bansal by furnishing the copy of bank account of Shri Akash Bansal, therefore the addition made by the A.O. was not justified and the Ld. CIT(A) rightly deleted the same particularly when the assessee proved the identity and creditworthiness of depositor as well as genuineness of transaction. Addition on account of the transaction with M/s. Shree Radha Commodity Services - CIT-A deleted the addition - HELD THAT:- Respectfully following the aforesaid referred to order in assessee's own case [2019 (10) TMI 1404 - ITAT CHANDIGARH], we do not see any merit in this ground of the Departmental appeal particularly when the cash deposited in the bank account of M/s. Radha Commodity Services was accepted by the Department as genuine while framing the assessment under section 143(3) of the Act vide order dt. 23/03/2016, for the same A.Y. 2013-14; in the case of Shri Kushal Gupta proprietor of M/s. Radha Commodity Services from whom the assessee received the loan through banking channel. We therefore do no see any valid ground to interfere with the findings given by the Ld. CIT(A) on this issue. Appeal of revenue dismissed.
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