2025 (8) TMI 1685

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....ent order passed by Assessing Officer (in short, 'AO') u/s 144 of the Act dated 15.12.2019. Grounds of appeal raised by the assessee are as under: 1. On the facts and in the circumstances of the case as well as the law on the subject, the learned CIT(A), NFAC has erred in confirming the action of Assessing Officer of passing ex-parte order u/s 144 of the I.T. Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned CIT(A), NFAC has erred in confirming the action of Assessing Officer in making huge addition of Rs. 2,52,24,075/- as unexplained investment u/s 69 of the I.T. Act, 1961. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned C....

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....corporated as a partnership firm with effect from 04.10.2016. All partners of the firm are assessed to tax and the capital introduced by them are duly reflected in their bank statements. All payments were received through proper banking channels. The capital introduction was used for purchase of land. The assessee submitted that capital introduced by the partners cannot be added in the name of the firm in view of decision of Hon'ble jurisdictional High Court in case of CIT vs. Pankaj Dyestuff Ind. Ltd. [IT Reference No.241 of 1993, dated 06.07.2005]. The assessee filed written submission before the CIT(A) and requested him to admit additional evidence in the interest of justice because the same is vital for establishing genuineness of trans....

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....ition of the above amount u/s. 69 of the Act, was upheld. 5. Aggrieved by the order of Ld.CIT(A), appellant has filed present appeal before the Tribunal. The Ld. AR submitted that the a paper book giving various details including the written submission before the CIT(A), copy of partnership deed, copy of ITR acknowledgements along with computation of income, confirmation and bank statements of all the four partners and ledger account of the partners in the books of the appellant. The ld. AR also relied on the decisions of Hon'ble jurisdictional High Court in cases of (i) PCIT vs. Vaishnodevi Refoils & Solvex (2018) 89 taxmann.com 80 (Guj), (ii) PCIT vs. Vaishnodevi Refoils & Solvex (2018) 96 taxmann.com 469 (SC) and (iii) Pankaj Dyestuff I....

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....d for a remand report from the AO but the AO observed that credit worthiness of the partners was not proved. 7.1 The ld. AR placed reliance upon the decisions of the Hon'ble jurisdictional Gujrat High Court in case of Vaishnodevi Refoils and Solvex (supra) and Pankaj Dyestuff Industries (supra). In the above decisions, it was held that when amount received by assessee firm has been duly reflected in the books of account and the partners have confirmed the introduction of capital, addition of partner's capital u/s 68 of the Act cannot be made in the case of firm. If the AO is not convinced about creditworthiness of the partner who made the capital introduction, inquiry has to be made in case of the partner and not against the firm. The rele....