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TMI Blog2016 (6) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ajendra Kumar. If Sri Ch.Rajendra Kumar was unable to explain the source of funds, for his investment as capital in the partnership firm, the Assessing Officer would have been justified in adding these unexplained cash credits to the income of Sri Ch.Rajendra Kumar in his individual assessment. That, however, did not justify adding these cash credits of ₹ 90,46,903/- to the income of the firm as these credits have been explained by the firm as having been introduced as capital by Sri Ch.Rajendra Kumar, a partner. - I.T.T.A.No.571 of 2015 - - - Dated:- 6-1-2016 - SRI RAMESH RANGANATHAN AND SRI M.SATYANARAYANA MURTHY, JJ. FOR THE PETITIONER : PRASAD (SC FOR INCOME TAX) JUDGMENT: (per Hon ble Sri Justice Ramesh Ranganathan) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to how the funds were available to the said partner, to induce the same as capital in the firm; and since the assessee was unable to furnish any evidence, explaining the sources, the said amount of ₹ 90,46,903/- should be added under Section 68 of the Act as they did not fulfil the ingredients to substantiate the cash credits. Aggrieved thereby, the assessee carried the matter in appeal to the Commissioner of Income Tax (Appeals) who dismissed the appeal holding that the total deposits in the bank account were much more than even the gross receipts of Sri Ch.Rajendra Kumar in both his individual and HUF capacity; and, therefore, the claim of the appellant could not be accepted without a proper explanation of the proximate deposits f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income tax as the income of the assessee of that previous year. In the present case, the assesee is a partnership firm. The cash credits of ₹ 94,46,903/- have been explained by the firm as capital introduced by Sri Ch.Rajendra Kumar. If Sri Ch.Rajendra Kumar was unable to explain the source of funds, for his investment as capital in the partnership firm, the Assessing Officer would have been justified in adding these unexplained cash credits t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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