TMI Blog2010 (5) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the Revenue against the order of the CIT(A) dated 11.07.2008. 2. The only issued raised by the Revenue in this appeal relates to the deletion of the addition made by the A.O. amounting to ₹ 87,00,000/-against capital contribution made by the partners as income of the firm. 3. The brief facts are that the A.O. noted that during the year the partners had made the capital contribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehemently contend that the A.O. asked the assessee to produce each of the partners so that the identity, creditworthiness and genuineness of the transaction could be approved. The onus is on the assessee to prove the cash credit. The CIT(A) has accepted the explanation of the assessee without bringing any evidence on record about the sources of the investment. The A.O. has even not given any opp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Tribunal has fallen into serious error. The Tribunal should have taken note of the fact that all the deposits aggregating to ₹ 1,43,000/- represented the capital contribution of the partners in the firm and they were made before the firm started its business. It was for the partners to explain the source of the deposits and if they failed to discharge the onus, then such deposits coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -firm. A similar question came up for consideration before this Court in IT. Ref. No.152 of 1990 India Rice Mills vs. CIT (1996) 218 ITR 508 (All), and then this Court held that the onus was on the partners to explain the source of the deposits made on the very first day when they entered into partnership and if they failed, the amount could have been added in their hands only and not in the han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the aforesaid decisions of the Allahabad High Court, hold that the A.O. was not correct in law in making the addition in the hands of the firm. If any addition has to be made, that that can be made only in the hands of the partners. The A.O. is free to take action in the hands of individual partners who has contributed the capital. We, accordingly, dismiss the appeal field by the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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