https://www.taxtmi.com/caselaws?id=450639 ITAT Rajkot ruled in favor of the assessee-firm regarding unexplained cash credit u/s 68. The court held that where partners' identity was undisputed and they confirmed capital introduction, additions should be made in partners' hands, not the firm's, following Pankaj Dyestuff Industries precedent. Partners' creditworthiness was established as their agricultural income, though reclassified by Revenue under different heads, was accepted. The court deleted the addition for unexplained capital and restricted adhoc expenditure disallowance to Rs. 1,50,000 based on previous year's treatment. en-us Fri, 23 Feb 2024 00:00:00 +0530 Fri, 08 Mar 2024 15:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450639 ITAT Rajkot ruled in favor of the assessee-firm regarding unexplained cash credit u/s 68. The court held that where partners' identity was undisputed and they confirmed capital introduction, additions should be made in partners' hands, not the firm's, following Pankaj Dyestuff Industries precedent. Partners' creditworthiness was established as their agricultural income, though reclassified by Revenue under different heads, was accepted. The court deleted the addition for unexplained capital and restricted adhoc expenditure disallowance to Rs. 1,50,000 based on previous year's treatment. Case-Laws Income Tax Fri, 23 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450639