2013 (10) TMI 1565

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.... questions of law arise for adjudication:- "1. Whether, on the facts and in the circumstances of the case, the learned Tribunal was justified in law in dismissing the appeal of the revenue and upholding the action of the learned CIT(A) directing deletion of the addition made on account of unexplained and ingenuine credits appearing in the capital accounts of partners, S/Shri K.L. Taneja and Naveen Taneja in the account books of the assessee particularly when there was no occasion for making the alleged gifts nor even the credit worthiness or identity of the alleged donors was substantiated by the assessee? 2. Whether, on the facts and in the circumstances of the case, the learned ITAT was right in law in deleting the addit....

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.... amounts which were transferred to the account of the assessee firm. The Assessing Officer, treated the transactions as received from unexplained and undisclosed sources and as such added them to the total income of the assessee-firm. The Commissioner of Income Tax (Appeals) reversed this order by holding as under:- "4.2 It was argued before me that it is well established and settled legal position that if it is found that the parnteres of a firm have brought in and contributes money towards capital accounts with the firm, the money introduced cannot be taxed in the hands of the firm. As per provisions of Section 68 of the Income-tax Act, the firm had to explain the nature and source of credits in the capital accounts of the partne....