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TMI Blog2013 (12) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ht by the partners of the assessee firm in the capital account is to be assessed in their individual hands of of the partners, unless they failed to explain the same properly - No loan has been taken by the assessee firm in its capacity - Decided against Revenue. - Income Tax Appeal No. - 338 of 2005 - - - Dated:- 27-11-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances of the case the Tribunal was justified in upholding the order of CIT (A) who has ignored the basic fact that the firm is a separate legal entity and there is no presumption under law that a loan taken by a person in his individual capacity can be transferred to any other entity without the consent of the creditor?" 4. The AO made additions of Rs.5,42,720/- in the books of account of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amounts to the firm. The Tribunal accepted the submission, that all the loans were old and only transfer entries were made during the year under consideration. No fresh loans were taken nor any cash was received by the assessee. Shri Suresh Chand had taken loans in the past in his individual capacity and was responsible for repayment of the same. The addition under Section 68 was therefore wrong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns given by the CIT (A) are in order and there is no infirmity in it as the amount brought by the partners of the assessee firm in the capital account is to be assessed in the individual hands in case the partners failed to explain the same property. 9. The matter with regard to cash credit was remanded to CIT (A) in the year 1997. The assessment may have been completed by now. 10. So far as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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