TMI Blog2015 (10) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... cash payment made by the assesee firm to its partner was genuine and duly reflected in the accounts book of assessee firm and was fully explained and therefore no case of addition of this amount as income in the hands of the assessee firm is made out by the revenue and there being no merit in the ground No. 1 of the revenue, the same is dismissed. - Decided in favour of assessee. Addition on account of purchase made for non business purpose - CIT(A) deleted the addition - Held that:- CIT(A) has given a finding that there is no basis for holding by the AO that these transactions of purchases were not for business purposes of the assessee. The purchases were supported by the purchase bills produced by the assessee. The complete postal addr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the order of the AO. Ld. Counsel for the assessee submitted that the cash payment made by the assessee to its partner has been assessed as income in the hands of the assessee. He submitted that there is no law to assess the cash withdrawal of a partner as income in the hands of the assesee firm. 3. We have considered the rival submissions and have perused the order of the Ld. CIT(A). We find that the basic facts in this case are not in dispute. The assessee firm has paid ₹ 16.5 lacs to its partner Shri Sukhdev Singh and the necessary entries were passed in the regular books of account of the assessee firm. The cash entry of ₹ 16.5 lac was reflected in the ledger account of Shri Sukhdev Singh in the books of account of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial as well as the closing stock figures thereof have been accepted by the AO and therefore to disallow part of the purchases of building material was not justified. He submitted that in case there was any discrepancy in the accounts, the AO should have restore to the provision of section 145 of the Act and not to disallow the part of purchases of building material, which were duly reflected in the regular books of account of the assesee maintained in the normal course of business. 6. We have considered the rival submissions and have perused the order of the AO and CIT(A). We find that the CIT(A) has passed a well reasoned speaking order on this issue. The CIT(A) has given a finding that there is no basis for holding by the AO that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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