9911796707
TMI Blog2024 (9) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 1401 - ITAT DELHI] relied upon by the assessee, squarely applies. It was held, on the issue of addition of share capital u/s 68 of the Act, that where there is no ambiguity about the identity of the partner and capital introduced from him, in such circumstances, if the AO was of the opinion that the amount is not proved in the hands of the partner, he should have considered it in his individual hands and not in the hands of the firm. We also find that this view is supported by the decision of Metachem Industries 1999 (9) TMI 21 - MADHYA PRADESH HIGH COURT] . We notice that the Tribunal while coming to the conclusion in the case of Ambika Enterprises [supra], has cited the decisions relied upon by the ld. counsel for the assessee as abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of both the sides were heard at length. Case records carefully perused. Relevant documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. 4. Brief facts of the case are that the assessee is a LLP partnership firm and has e-filed the return of income for the A.Y 2018-19 on 26.09.2018 declaring total income at Rs 28,23,806/-. The case was selected under CASS scrutiny and notice u/s 143(2) of the Act was issued online on 22.09.2019 for verification of issues of investment in immovable property and introduction of share capital/other capital. 5. The assessee is a limited liability partnership firm having four partners Mr Amarjeet, Mr TarunMalhotra, Mr Rakesh Dham and Mr Hardeep Singh. The firm is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) allowed the appeal and deleted the addition. 8. The aggrieved Revenue is now before us. 9. Before us, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. With respect to the funds from Tarun Malhotra and Rakesh Dham, the ld AR submitted that they have enough goodwill and creditworthiness to raise the amount to fund the LLP project. The ld AR vehemently argued that the assessee has discharged its onus of furnishing the explanation for the source of funds used for the purchase of property. It is the say of the ld. counsel for the assessee that if the identity of the payer has been established, the transactions are genuine, the amount may not be added in the hands of the partnership LLP. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erused the relevant material on record. We find that the CIT(A) has examined the creditworthiness of the partners and deleted the additions made by observing the following : Income Tax Returns of all the entities/persons alongwith their confirmations, personal balance sheets/income and expenditure statements and bank statements have been filed and the loans have been sourced through banking channels. The audited balance sheet and personal income and expenditure account of Sh. Tarun Malhotra has been perused. From the balance sheet of Sh. Tarun Malhotra for relevant assessment year, it is seen that a sum of Rs. 1,65,88,982/- is available in his capital account. Further, he has earned a profit of Rs. 44,40,938/- from business and profession a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from business and profession and house property. It is seen that bulk of the money advanced by him i.e. Rs. 95,44,077/- has been taken as secured loan from Cholamandalam Investment and Finance Co. Ltd. The creditworthiness of sh Rakesh Dham must have been verified by the said NBFC before granting him this loan. As per the return of income for the relevant assessment year the gross total income of Shri Rakesh Dham has been Rs. 21,58,132/- and he is a regular income tax payee. The comments of the AO that computation of income does not inspire confidence in his ability to get genuine business loan is merely based on surmises and assumptions. Further the AO has not controverted the cash credits in the account of Rakesh Dham including the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
