TaxTMI 
TaxTMI 
2025 (11) TMI 1604
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....mill and deriving income from the said business. The A.O at the time of assessment observed that during the year under consideration, one of the partner of the assessee firm i.e. Shri Vinod Khandelwal introduced capital of Rs. 3,00,000/- in the firm and accordingly, the assessee was required to furnish the details of the capital introduced along with supporting documents. The assessee furnished copy of ITR a/w. computation of income and balance sheet of the partner i.e. Shri Vinod Khandelwal for the assessment year under consideration. That on perusal of the same, the A.O was not satisfied and further show cause notice was issued. In response to the show cause notice, the assessee submitted that the closing cash in hand of Shri Vinod Khande....
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....he facts, it is observed that during the year under consideration, one of the partner of the assessee firm i.e. Shri Vinod Khandelwal had introduced capital of Rs. 3,00,000/- in the firm. The Appellant had been asked to furnish the details of the capital introduced alongwith supporting documents. In response, the appellant had furnished the copy of ITR alongwith the computation of income & balance sheet of the partner, Shri Vinod Khandelwal for the assessment year under consideration. On perusal of the same, it was observed by the A.O. that an amount of Rs. 13,02,440/- was shown as cash in hand & others as on 31.03.2016 in the balance sheet of the partner Shri Vinod Khandelwal, however, no supporting documents had been furnished which can s....
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....Act, 1961 and had been added to the total income of the appellant for the year under consideration by the AO. Ongoing through the above facts of the case as discussed, it is seen that the appellant had failed to prove the creditworthiness of the partner & genuineness of the transaction. The A.O. had rightly analysed the facts of the case. On verification of personal ITR of the partner Shri Vinod Khandelwal, for A.Y. 2016-17 had been perused by the AO and it was observed that he had not shown any cash in hand balance as on 31.03.2016, therefore, the balance sheet of the partner produced by the appellant firm is not reliable as no cash balance is reflected in the return of income filed by the partner Shri Vinod Khandelwal. Thus in my....
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....that cash in hand was formed from withdrawal of Rs. 7,00,000/- from Khandelwal Industries. 5. That since the principles of natural justice was not followed and that since no inquiry on this aspect was done by the Revenue, the addition made in the hands of the assessee, therefore, cannot sustain and accordingly, the same is deleted. The A.O shall provide necessary appeal effect accordingly. 6. Other issue of addition is that the assessee had deposited Rs. 17,20,000/- in Sun & Sun Inframetric, Raipur. The A.O was of the opinion that such deposits have been made by the assessee for personal purposes and there was nothing to do with the business of the assessee and accordingly, interest expenses equivalent to 12% of the said deposit shoul....
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.... different ground that there is mis-appropriation of the funds by the assessee by giving interest free deposit to the family concerns of the assessee firm. The A.O had not denied the submissions made by the assessee on this issue. Also, the A.O had not made any inquiry which is apparent in his order to justify the addition and at the same time, his findings are not on the aspect of whether such deposits were for the purpose of business or not but he goes on the aspect of misappropriation of the funds or mis-utilization of funds by the assessee by giving interest free deposit to the family concern of the assessee firm. 8. Similarly, the Ld. CIT(Appeals)/NFAC without going into the specific inquiry on this aspect and examining the facts on....