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TMI Blog2022 (9) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... anding in the books of the assessee. Even, CIT(A) has also confirmed the addition on the basis of this observation of ld. AO. We find no merit in the finding of CIT(A) as he failed to appreciate the simple accounting entry that when the assessee s proprietorship concern received a sum on behalf of the partnership firm then such sum will stand on the liability side of the balance sheet of the sole proprietorship concern and when the said sum is repaid back the credit balance is squared off. There is no other mechanism to reflect such entry in any other way as has been shown by the assessee. Since the assessee has rightly disclosed the said transaction in the books of account as an advance received on behalf of the firm on the liability si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before or at the time hearing. 3. Brief facts of the case are that the assessee is an individual earning income from other sources, return of income for AY 2012-13 filed on 26.09.2012 declaring income of Rs. 3,81,917/-. Subsequent to issue of notice u/s 148 of the Act, assessment proceedings u/s 147 r.w.s. 143(3) of the Act were carried out wherein the assessee was asked to explain the receipt of Rs. 28,00,900/- and why not the provisions of Section 68 of the Act be invoked thereon. Detailed reply was filed explaining the source of the said sum but ld. AO made the addition u/s 68 of the Act observing that the said sum was the amount receivable by the partnership firm of which the assessee is a partner but since it was shown as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 900/- made by ld. AO u/s 68 of the Act for unexplained cash credit. I observe that the assessee run a proprietorship concern and is also a partner in M/s. City Live Construction. This partnership firm commenced a project in the name of Live Garden . As stated by the ld. Counsel for the assessee that since the firm as well as project was new, the bank account was not opened and just to facilitate the business of the firm, the assessee allowed the buyers to give advance in the bank account of the sole proprietorship concern. I also observe that ld. AO has thoroughly carried out the enquiry from the persons who have given the alleged amount of Rs. 28,00,900/-. Ld. AO was satisfied on the basis of positive replies received to the notices issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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