https://www.taxtmi.com/caselaws?id=469441 A partner's capital introduction in a firm's audited books is not to be treated as unexplained cash credit unless the revenue shows that the partner denied the investment or lacked the capacity to make it. Where the record reflects the capital entry and the assessing authority does not examine the partner or disprove his capacity, the addition is not sustainable. Any disallowance of proportionate interest that rests only on that addition also falls away once the underlying capital addition is deleted. The stated principle is that consequential adjustments cannot survive without a valid primary addition. en-us Thu, 06 Mar 2025 00:00:00 +0530 Wed, 17 Jun 2026 19:02:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469441 A partner's capital introduction in a firm's audited books is not to be treated as unexplained cash credit unless the revenue shows that the partner denied the investment or lacked the capacity to make it. Where the record reflects the capital entry and the assessing authority does not examine the partner or disprove his capacity, the addition is not sustainable. Any disallowance of proportionate interest that rests only on that addition also falls away once the underlying capital addition is deleted. The stated principle is that consequential adjustments cannot survive without a valid primary addition. Case-Laws Income Tax Thu, 06 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469441