Partnership Firm Deposits Not Income

The High Court of Allahabad held that deposits made by partners on the first day of a partnership firm's existence cannot be considered as income of the firm from undisclosed sources. The court ruled in favor of the assessee and directed the Appellate Tribunal to pass an order accordingly.

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The High Court of Allahabad held that deposits made by partners on the first day of a partnership firm's existence cannot be considered as income of the firm from undisclosed sources. The court ruled in favor of the assessee and directed the Appellate Tribunal to pass an order accordingly. (Case citation: 1996 (2) TMI 84 - ALLAHABAD High Court)

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