TMI Blog2017 (4) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... as loans and advances, while it is shown as payable in the assessee’s books of account. This contention of the assessee has not been verified by any of the authorities below. The AO has brushed it aside on the ground that the copies of the ledger extracts are prepared by the assessee himself/the firm as per his/their convenience and therefore not reliable. The assessee has filed the copy of the Partnership Deed and we find that the partners inducted are not in any way related to the assessee and also they are entitled to equal share of profit as the assessee. In such circumstances, it cannot be held that the books of the firm are prepared as per the convenience of the assessee. Thus we deem it fit and proper to remand this issue to the fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical purposes only with regard to the source of the capital. - ITA No.1912/Hyd/2014 - - - Dated:- 26-4-2017 - Smt. P. Madhavi Devi, Judicial Member AND Shri S.Rifaur Rahman, Accountant Member For The Assessee : Shri R.D. Bhutoda Ramdev For The Revenue : Smt. Suman Malik, DR ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for the A.Y 2010-11 against the order of the CIT (A)-II Hyderabad dated 29.09.2014. In this appeal, the assessee is aggrieved by the order of the CIT (A) in confirming the additions made by the AO. The grounds raised by the assessee are as under: 1) In the facts and circumstances of the case and as per law, the learned AO has erred in treating the entire cash deposits of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2009-10 relevant to the A.Y 2010-11. During the Proceedings u/s 143(3) of the Act, the assessee was asked to explain the sources for the deposits into his savings bank account. The assessee submitted that M/s Samaritan Agencies was a proprietary concern of the assessee which was later converted to a partnership firm w.e.f. 1-4-2008. He submitted that the customers of M/s. Samaritan Agencies were dealing with the assessee alone and inspite of conversion into a partnership firm, the debtors were paying the amounts due to M/s. Samaritan Agencies to the assessee through cheques which were deposited into the assessee s savings bank a/c and that the assessee was withdrawing the same on different dates and depositing the same into his bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h necessary evidence. Aggrieved, the assessee is in second appeal before us. 4. The learned Counsel for the assessee reiterated the submissions made by the assessee before the authorities below, while the learned DR supported the orders of the authorities. 5. Having regard to the rival contentions and the material on record, we find that undisputedly the assessee had deposited cash into his bank account and has explained the source to be the payments received from the debtors of the firm. Since the assessee was the proprietor of the business prior to its conversion into a partnership firm and since he continues to be the Managing Partner of the firm, we are inclined to accept the assessee s contentions that the debtors of the firm iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allenged before us is the unexplained investment of ₹ 32,00,000 in M/s. Filmors Ltd. According to the assessee, he has contributed only ₹ 18,50,000 and not ₹ 32,00,000 as presumed by the AO. 7. The learned Counsel for the assessee reiterated the submissions made before the authorities below while the learned DR supported their orders. 8. Having regard to the rival contentions and the material on record, we find that the assessee became a partner in M/s. Filmor on account of a reconstitution of the firm w.e.f. 1.4.2009. The AO found that during the year, the assessee has introduced a capital of ₹ 32.00 lakhs during the year and required the assessee to explain the sources for such capital. The assessee explained ..... X X X X Extracts X X X X X X X X Extracts X X X X
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