https://www.taxtmi.com/caselaws?id=752037 ITAT Pune held that addition u/s 68 regarding capital introduced by five partners from loan advances was not sustainable. Following precedents from Jharkhand HC and Gujarat HC, the tribunal ruled that while AO can examine partnership firm's income source, he cannot investigate "source of source." If AO questions partners' creditworthiness for capital contribution, inquiry must be made against individual partners, not the firm. Addition u/s 68 in firm's hands for partner capital introduction is legally unsustainable. CIT(A)/NFAC order set aside, AO directed to delete addition. Decided in assessee's favor. en-us Mon, 29 Apr 2024 00:00:00 +0530 Wed, 01 May 2024 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752037 ITAT Pune held that addition u/s 68 regarding capital introduced by five partners from loan advances was not sustainable. Following precedents from Jharkhand HC and Gujarat HC, the tribunal ruled that while AO can examine partnership firm's income source, he cannot investigate "source of source." If AO questions partners' creditworthiness for capital contribution, inquiry must be made against individual partners, not the firm. Addition u/s 68 in firm's hands for partner capital introduction is legally unsustainable. CIT(A)/NFAC order set aside, AO directed to delete addition. Decided in assessee's favor. Case-Laws Income Tax Mon, 29 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752037