TaxTMI 
TaxTMI 
2023 (7) TMI 28
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....ear 2014-15. 3. The facts are that the assessee firm was engaged in the business of manufacturing of ornaments. The return of income was filed by the assessee showing income of Rs. 5,55,830/- which was in respect of Assessment Year 2014-2015. This income mentioned in the return of income included business income of Rs.3,97,344/- and income from other sources to the extent of Rs. 1,58,486/-. Thereafter, the assessment under section 143(3) of the Income Tax Act was completed by making addition of Rs. 4,33,50,000/- towards introduction of capital by the partners which was in cash. The Assessing Officer treated it as cash credit under section 68 of the Act and Rs. 56,56,567/- towards interest on capital. According to the Assessing Officer, the....
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....e the Assessing Officer took the view that the addition was required to be made, the Appellate Commissioner supplied his own reasons to set aside the addition made by the Assessing Officer. It was observed that the only ground which weighed with the Assessing Officer was that the capital was introduced in cash and that it could have been very well given by cheque. It was observed that out of the total capital introduced, Rs. 4,33,50,000, the only amount of Rs. 33,50,000/- was by way of cash. Finding was recorded that the addition by the Assessing Officer was on a flimsy ground. It was also observed that there was no good ground for introducing capital in cash. Thus, it was found by the Appellate Commissioner that the assessee had discharged....