https://www.taxtmi.com/caselaws?id=446721 The ITAT Chennai held that addition under Section 56(2)(vii) was not sustainable when property was purchased by partners in individual names but using firm's funds. Despite the sale deed showing individual ownership, the tribunal found that the property was effectively acquired by the firm as evidenced by its introduction in firm's books, business use, depreciation claims, and loan repayment by the firm. Applying Section 14 of the Indian Partnership Act, property acquired with firm's money is deemed acquired for the firm. The provisions of Section 56(2)(vii)(b)(ii) were held inapplicable to partnership firms. Assessee's appeal was allowed. en-us Wed, 29 Nov 2023 00:00:00 +0530 Sat, 09 Dec 2023 08:55:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446721 The ITAT Chennai held that addition under Section 56(2)(vii) was not sustainable when property was purchased by partners in individual names but using firm's funds. Despite the sale deed showing individual ownership, the tribunal found that the property was effectively acquired by the firm as evidenced by its introduction in firm's books, business use, depreciation claims, and loan repayment by the firm. Applying Section 14 of the Indian Partnership Act, property acquired with firm's money is deemed acquired for the firm. The provisions of Section 56(2)(vii)(b)(ii) were held inapplicable to partnership firms. Assessee's appeal was allowed. Case-Laws Income Tax Wed, 29 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446721