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2021 (8) TMI 1096 - AT - Income TaxUnexplained cash credit u/s 68 - cash received from partners - difference pointed out by the AO as capital introduced by both the partners of the assessee firm different from the capital contribution stated to be claimed by the assessee firm - HELD THAT:- The main source of cash in hand was explained by the assessee as capital contribution made by its partners and since the said source was clearly established on the basis of cash book showing introduction of capital by the partners, the difference as pointed out by the AO in the total capital contribution as claimed by the assessee to the extent of ₹ 31,00,000/- was not relevant to the issue and such shortfall cannot be treated as income u/s 68 in the hands of the assessee firm by treating the same as unexplained cash credit. The issue was relating to the source of cash in hand as reflected in the balance sheet of the assessee as on 31.03.2015 and when the same was satisfactory explained by the assessee inter alia in the form of capital contribution by the partners of the assessee firm, it is of the view that the addition as made by the AO and confirmed by the Ld. CIT(A) u/s 68 is not sustainable. We delete the same and allow this appeal of the assessee.
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