2016 (6) TMI 112

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.... Hon'ble Sri Justice Ramesh Ranganathan) This appeal, under Section 260-A of the Income Tax Act, 1961 (for short "the Act"), is preferred against the order passed by the Income Tax Appellate Tribunal in I.T.A.No.1765 of 2012 dated 17.04.2015 for the assessment year 2006-07. The assessee, a partnership firm, filed its returns of income for the assessment year 2006-07 declaring a loss of Rs. 2....

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....e had neither responded nor had they furnished the source for the amounts deposited into the bank accounts of the partner; they had furnished a sketchy reply; the plea taken by the assessee that the partner had, in fact, introduced the amounts was not acceptable, as he had failed to explain the known sources of the funds or as to how the funds were available to the said partner, to induce the same....

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....-firm carried the matter in appeal to the Tribunal. In the order under appeal, the Tribunal referred to the earlier order of the Commissioner of Income Tax (Appeals), and then observed that since the matter was restored to the Assessing Officer for the reason of fulfilling the conditions of Rule 46-A, there was no scope to make addition in the hands of the firm; what the Assessing Officer was a....

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....nsequently, the Assessing Authority was justified in adding these unexplained cash credits to the income of the firm. Section 68 of the Act stipulates that, where any sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessin....