TMI Blog2018 (12) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... he proprietorship concern and consequently the assessment in the hand of the dissolved partnership firm would amount to double taxation of the same income. AO has already accepted this fact for the A.Y. 2009-10, accordingly we delete the addition made by the Assessing Officer. We delete the addition made by the Assessing Officer - Appeal of the assessee is partly allowed. - ITA No. 241/JP/2018 - - - Dated:- 23-10-2018 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM For the Assessee : Shri P.C. Parwal (CA) For the Revenue : Shri J.C. Kulhari (JCIT) ORDER PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 29/12/2017 of ld. CIT(A)-I, Jaipur for the A.Y. 2008-09. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was a partnership firm and did not file any return of income for the year under consideration. As per the AIR information generated from the system, the Assessing Officer noticed that the assessee firm has received ₹ 14,38,625/- from various parties during the year under consideration, accordingly the Assessing Officer issued a notice U/s 148 of the Income Tax Act, 1961 (in short the Act). In response, the assessee submitted that the partnership firm consisting of Sh. Rajiv Soni and Sh. Sanjeev Soni having equal share was dissolved on 31/3/2007 and the entire business was taken over by one of the partner Shri Sanjeev Soni. Since the partnership firm was dissolved on 31/3/2007, therefore, no return of income was filed by the partners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he partnership firm was dissolved w.e.f. 31/3/2007 vide dissolution deed dated 28/3/2007 and as per the terms of the dissolution one of the partner Shri Sanjeev Soni has taken over the business of the partnership firm and continued with the business under the same name M/s Destiny Consultants but as a proprietorship concern. The income as per 26AS has been declared by the assessee in the return of income filed as proprietorship concern and therefore, the said amount was taxed by the Assessing Officer again in the hand of dissolved partnership firm would amount to double taxation of the same income. He has pointed out that the payers have inadvertently deducted TDS and deposited under the PAN of the dissolved partnership firm, though, the bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile the relevant details and reconciliation to establish that these receipts shown in 26AS in the partnership firm are already considered by the proprietorship concern in its P L account. He has further contended that the ld. CIT(A) has rightly pointed out that the dissolved partnership firm has not surrendered the PAN and also not informed the Assessing Officer as well as to the Registrar of partnership firm about the dissolution of the partnership firm. He has relied upon the orders of the authorities below. 7. We have considered the rival submissions as well as the relevant material on record. There is no dispute that the partnership firm was dissolved vide dissolution deed dated 28/3/2007 w.e.f. 31/3/2007 and therefore, the partne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is shown in the P L account amounting to ₹ 31,76,148/-. We also gone through the ledger accounts of all these parties and found that the amount shown in the 26AS are matching with the ledger account of these parties in the books of the proprietorship concern. The ledger account copy of placed at page Nos. 42 to 51 of the paper book whereas the details of 26AS are placed at page Nos. 39 to 41 of the paper book. Thus, all these payers and their respective amounts are also recorded in the ledger account of proprietorship concern. It is clear that these receipts shown in the 26AS of the partnership firm are against the bills raised by the proprietorship concern but since for the last so many years, the payers were deducting TDS under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of the same is placed at page No. 30 of the paper book alongwith computation of total income wherein the entire receipt on account of consultancy charges is considered and the TDS credit of ₹ 2,86,660/- was claimed, which includes the amount of ₹ 1,44,265/- in respect of the receipt of ₹ 14,38,625/- shown in the 26AS of the partnership firm. Accordingly, in view of above facts and circumstances, we hold that once the assessee has produced all the details to establish that these receipts pertain to the proprietorship concern and mistakenly the TDS was deducted and deposited by the payers under the PAN of the dissolved partnership firm then the assessment of the income in the hand of the non-existing partnership firm is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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