TMI Blog2023 (7) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ase ofVaishno Devi Refoils Solvex[ 2018 (7) TMI 651 - SC ORDER] if Assessing Officer was not convinced about creditworthiness of partner who had made capital contribution, inquiry had to be made at end of partner and not against firm. Thus the addition amount is quashed. Accordingly, the grounds of the appeal of assessee are allowed. - I.T.A. No. 93/Asr/2020 - - - Dated:- 20-6-2023 - DR. M. L. MEENA , ACCOUNTANT MEMBER And SH. ANIKESH BANERJEE , JUDICIAL MEMBER For the Appellant : Sh. P. N. Arora, Advocate For the Respondent : Sh. Pradeep Kumar, Sr. DR ORDER Per : Anikesh Banerjee, JM: The instant appeal of the assesseewas filed against the order of the ld. Commissioner of Income Tax (Appeals)-1, Ludh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iana has erred in confirming the impugned addition of Rs. 1950000/- made by the Ld. Deputy Commissioner Circle - I Jammu, u/s 68 of the Income Tax Act, 1961 arbitrarily, illegally and without any justification, when the appellant was assessed at a specific % of the gross receipts, the addition is deemed to be sustained with the income assessed on specific rate. 4. The brief fact of the case is that in assessment the addition was confirmed in different heads. Being aggrieved the assesssee filed appeal before the ld. CIT(A). The appeal was partly allowed. Only the introduction of capital by partners in assessee-firm amount to Rs. 19,50,000/- was added in the hands of assessee U/s 68 of the Act which was duly upheld by the ld. CIT(A) for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm, were the three partners. The three partners had also produced credible material to show their source of income for the specific advances made to the firm. If at all the source of the donor/ creditor is doubted, then there could be an assessment made only on that donor or creditor and not on the firm, who has proved the identity and creditworthiness of their creditor. To that end is the various decisions placed on record by the learned Amicus Curiae. 5.1.3. Commissioner of Income-tax, Rajkot II v. Odedara Construction, [2014] 45 taxmann.com 65 (Gujarat), Held Section 68 of the Income-tax Act, 1961 - Cash credit (In case firm partners) - Assessment year 2007-08 - Assessing Officer made certain addition under section 68 on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad added back u/s 68 due to the non - satisfactory explanation by the assessee. But the investment of the partners should be examined in the hands of the partners. The addition cannot be accepted in the hands of the firm. 7.1 We respectfully relied on the order of M. Venkateswara Rao and Odedara Construction(supra).We respectfully also relied on the order of Hon ble Supreme Court of Indiain the case of Principal Commissioner of Income-tax v. Vaishno Devi Refoils Solvex, [2018] 96 taxmann.com 469 (SC) and the relevant portion is reproduced below: Section 68 of the Income-tax Act, 1961 - Cash credit (Firm/partner, in case of) - Assessment year 2010-11 - For relevant year, Assessing Officer made addition to income of assessee-firm unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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