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TMI Blog2023 (9) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the Case in upholding addition of Rs.67,50,000/- and recording her finding that "nor has it been conclusively established that the funds introduced factually belonged to the partners and not the appellant firm" The above finding has been recorded without judicious consideration of facts and particularly in view that statement of both the partners have been recorded during the course of Assessment proceedings where both the partners have confirmed introduction of cash in the firm as contribution to their capital. 2. The Learned CIT(Appeals) had committed a grave mistake of law by not following various judgments of various High Courts inspite of the fact that identical question have been squarely decided by respective High Courts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the notice as above, it is submitted herein as under: That the above assessee have filed audited balance sheet with the return of income, the perusal thereof revealed that there were addition in the capital accounts of the partners herein as under: Name of the Partner Amount of Additions Sh. Sh. Neeraj Harjai 32,50,000/- Sh. Dheeraj Harjai 35,00,000/- The same is also evident from the copy of capital account annexed with the audited balance sheet already furnished. 1. Separate taxable persons That the partners of the above said firm assessee and the partnership firm are separate taxable person as per section2(31) wherein the partners are assessed as individuals and the firm as partnership firm. The partners as above and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsibility for introduction of capital in the Assessee Firm. Since both the partners admitted to have introduced capital of Rs. 67,50,000/- in the partnership Firm by way of cash and no plausible explanation furnished by them, the re-assessment proceedings in their hands have been initiated against the partners. Therefore, the Ld. A.O. in the case of the Assessee made addition in the hands of the Assessee Firm on protective basis to protect the interest of the Revenue vide assessment order dated 28/12/2016. Aggrieved by the assessment order dated 28/12/2106, the assessee preferred an Appeal before the CIT(A), the Ld. CIT(A) dismissed the Appeal filed by the assessee vide order dated 30/08/2019 which is under challenge before us by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of same becoming time barred as per the provision of Section 153(2) of the Act on 31/03/2023, which was not disputed by the Ld. DR. It is well settled proposition of law that when substantive addition does not survive on account of being time barred, then the protective addition also does not survive. The said view of ours have been fortified by the order of the Tribunal in (Jodhpur Bench) the case of Ramesh Chand Prem Raj Soni (HUF) Vs. ACIT 2006 (10) TMI-197 dated 16/10/2016, where in it is held as under:- "6. We meticulously traversed through all the evidences and also took the learned Authorized Representative and Departmental Representative, through all the relevant papers placed in the file to which our attention was drawn. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not possible to come to clear-cut conclusion, readily. In the given case the substantive additions have not been declared to not belong to Shri Ramesh Chand Soni. Had that been the case, this protective addition could have been considered and added substantially if it was found to belong to "protective assessee. We don't say that no protective addition can be made under Chapter XIV-B of the Act" 8. In view of the above discussion, since the substantive addition has not been survived on account of being time barred, consequently, the protective addition made in the hands of the assessee herein also will not survive, accordingly, we delete the protective addition by setting aside the order of the Lower Authorities. 9. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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