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TMI Blog2019 (3) TMI 1598X X X X Extracts X X X X X X X X Extracts X X X X ..... case, in brief, are that the assessee is a partnership firm and filed its return of income on 31.10.2006 declaring a loss of Rs. 6,40,000/-. The Assessing Officer, vide order passed u/s 144/263 of the IT Act made addition of Rs. 7,40,000/- being the capital introduced by partners on the ground that source of introducing fresh capital remained unexplained. The details of such capital introduced are as under:- i) Shri Ajay Kumar - Rs. 40,000/- ii) Shri Arun Kumar - Rs. 1,00,000/- iii) Shri Mohit Syal - Rs. 2,00, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um by companies on the basis of report of the Investigation Wing and does not relate to any introduction of capital by any partner of a partnership firm. He accordingly submitted that the order of the CIT(A) should be reversed and the ground raised by the assessee should be allowed. 6. The ld. DR, on the other hand, heavily relied on the order of the CIT(A) and submitted that since the assessee failed to discharge the onus cast on it by proving the source of funds of the partners to invest such huge amount in the capital, the CIT(A) is justified in confirming the addition made by the Assessing Officer. 7. I have considered the rival arguments made by both the sides and perused the orders of the authorities below. I have also considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then, such deposits could be added in the hands of the partners only. It was held that the Tribunal erroneously came to the conclusion that the deposits represented the undisclosed income of the assessee firm. Respectfully following the decision cited, supra, I am of the considered opinion that no addition in the hands of the firm could have been made in the instant case and addition, if any, can be made only in the hands of the partner who has contributed such capital. The order of the CIT(A) is accordingly set aside and the ground raised by the assessee on this issue is allowed. 8. The second issue raised by the assessee relates to the order of the CIT(A) confirming the addition of Rs. 18,50,000/- made by the Assessing Officer on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered the various decisions relied on by the ld. counsel for the assessee. I find the Assessing Officer, in the instant case, made addition of Rs. 27,25,000/- u/s 68 being the amount of loan received by the assessee from five loan creditors. I find the ld.CIT(A) deleted the loan obtained by the assessee from M/s Hisar Distributors and from Shri Ravi. He, however, sustained the loan obtained from the remaining three loan creditors amounting to Rs. 18,50,000/-. It is the submission of the ld. counsel for the assessee that he has filed all the details before the lower authorities and proved the identity and credit worthiness of the loan creditors and genuineness of the loan transaction. The ld. DR, on the other hand, states that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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