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2022 (10) TMI 355 - AT - Income TaxProperty [plot] purchased in the name of partners for the benefit of the Partnership Firm out of Partnership Firm funds - Whether property/plot in question was purchased out of the Partnership Firm funds and not out of the funds by the individual partners and no investment have been made by the individual partners for purchase of property in question? - assessee as partner is having 1/3rd equal share on par with other co-partners in the partnership firm on its profit and losses - HELD THAT:- Funds are not utilized out of the individual partner’s and the entire sum has been paid by the partnership Firm through banking channel and duly shown in it’s audited accounts and balance-sheet which is also not disputed by the authorities below. After deducting the cost of acquisition and other expenses out of sale proceed received by the Partnership Firm on the total surplus amount on sale of property Plot Noida, the Partnership Firm viz., M/s. Delhi Plastic Industries has shown the said sum in the P & L A/c for the F.Y. 2009-10 as noted by the Ld. CIT(A) in his order which is also included in the returned income of assessee and had paid taxes thereon. This factual matrix has not been disputed or controverted by the Ld. D.R. In this situation, if addition is sustained, then it would amount to double taxation. D.R. could not point out any defect in the short term capital gain calculation shown by the Partnership Firm in it’s P & L A/c. Since, no profit accrued/earned by the assessee/coowners on the reason that no investment made by the partners, the impugned addition [being 1/3rd equal share amongst partners] made in the hands of assessee without considering the other expenses like brokerage, stamp duty etc., is hereby deleted. Accordingly, appeal of the assessee is allowed.
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