M/S. GALAXY BUILDCON, RAIPUR,RAIPUR vs. ITO-3(3), RAIPUR, RAIPUR

ITA 284/RPR/2026Status: DisposedITAT Raipur06 August 2026AY 2015-1618 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that if capital is introduced by partners into a firm, any addition on account of unexplained cash credit can only be made in the hands of the partners, not the partnership firm itself. The firm has discharged its onus by showing the capital introduction in its books and the partners confirming the contribution.

What were the facts?

The assessee, a partnership firm, introduced capital contributed by its partners. The Assessing Officer (AO) treated a portion of this capital as unexplained cash credit under Section 68, as the creditworthiness and genuineness of the contributions from two partners were not satisfactorily explained. The CIT(A) upheld the AO's addition.

What were the issues?

Whether unexplained capital introduced by partners in a partnership firm can be added to the income of the firm, or if it should be assessed in the hands of the partners.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI R.K. PANDA, VICE- & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Sunil Kumar Agrawal, CA, Ms. Vidya Verma, Advocate
For Respondent: Mr. Piyush Tripathi, Sr. DR
Hearing: 04.08.2026Pronounced: 06.08.2026

PER R.K. PANDA, VP

This appeal filed by the assessee is directed against the order dated 30.01.2026 passed by the Ld.CIT(A), Raipur-3, relating to assessment year 2015-16. 2. There is a delay of 9 days in filing of this appeal for which the assessee has filed a condonation application along with an affidavit explaining the reasons for such delay. It has been explained that the father of the assessee was seriously ill f

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →