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2024 (2) TMI 695 - ITAT SURATUnexplained cash credit/bank transaction in case of firm - partnership firm has been dissolved and the business of the firm was taken over a sole proprietorship concern - In the absence of dissolution deed and such bank account is not reflected in the balance-sheet having its old PAN, AO treated the transaction in the bank account as unexplained cash credit - Assessee submitted that the partnership firm stand closed on 01.04.2008 and the ex-partner of assessee-firm filed his affidavit and contended that original dissolution deed in not traceable as more than 10 years have passed - CIT(A) confirmed the action taking view that source of deposits in the bank account is unexplained as the assessee ailed to discharge his onus to explain the nature and source - as submitted mistake was committed by bank authority, the account is account of proprietary of M/s Vasant Traders and PAN of partnership firm was inadvertently mentioned in the account. HELD THAT:- We find that before AO as well as ld. CIT(A), the assessee categorically contended that in bank account of proprietorship, the PAN of erstwhile partnership firm was inadvertently migrated at the time of data migration. The assessee in the statement of fact also categorically contended that such PAN of firm was wrongly mentioned by its banker. We find that banker of assessee has given certified that while migrating the data of PAN was inadvertently mentioned as AAEFV7806M instead of PAN of proprietary concern of Mr. Dilipbhai Vasantlal Sheth. We find that such evidence was furnished by assessee before Ld.CIT(A). No verification of fact was conducted by Ld.CIT(A) either of their own or through Assessing Officer. On perusal of books of account of proprietary concern of Dilipbhai Vasantlal Sheth, we find that such bank account was duly disclosed in the audit report and all the transactions are considered by while filing return of income in the proprietary concern. AO was not justified in making addition without verification of all facts. This ground of assessee’s appeal is allowed.
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