TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal rules partners, not firm, responsible for explaining capital contributions</h1> <h3>Income-tax Officer, Ward 2 (2), Gwalior Versus M/s. R.P.S. & Company</h3> Income-tax Officer, Ward 2 (2), Gwalior Versus M/s. R.P.S. & Company - TMI Issues involved: Appeal against CIT(A) order regarding deletion of addition made by A.O. against capital contribution by partners as firm's income.Deletion of addition by CIT(A):- A.O. added &8377; 87,00,000 in firm's hands as capital contribution by partners.- Assessee explained partners invested from agricultural income with affidavits.- CIT(A) deleted addition, stating partners' capital contribution reasonably explained.- Revenue contended onus on assessee to prove cash credit, no evidence on sources of investment.- CIT(A) accepted explanation without evidence, no opportunity for cross-examination.- Tribunal cited case law stating no addition in firm's hands for partner deposits made before business commencement.Case law references:- India Rice Mill vs. CIT, 218 ITR 508 (Alld)- Surendra Mahan Seth vs. CIT, 221 ITR 239 (Alld)- CIT vs. Jaiswal Motor Finance, 141 ITR 706 (Alld.)Decision based on case law:- Tribunal held no addition in firm's hands for partner capital contribution.- Burden on partner to explain source of investment.- A.O. incorrect in adding amount in firm's hands, should act on individual partners.- Appeal by Revenue dismissed, decision pronounced on 25.05.2010.
TaxTMI 
TaxTMI 
