M/S OM NAMAH SHIVAY TRADING COMPANY,,PARAOLA vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -1,, JALGAON

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ITA 511/PUN/2023Status: DisposedITAT Pune29 April 2024AY 2017-18Bench: SHRI R. K. PANDA (Vice President), SHRI S.S. GODARA (Judicial Member)10 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once the assessee firm satisfactorily explains the source of investment as coming from its partners, its onus is discharged. Any further inquiry into the source of the partners' funds should be directed at the partners, not the firm.

What were the facts?

The assessee firm received a loan of Rs. 1,10,00,000/- from M/s. M.M. Traders, whose proprietor was a non-filer. Investigations revealed that the proprietor could not explain the source of the loan, and his bank account showed suspicious transactions including cash deposits followed by transfers to the firm's partners.

What were the issues?

Whether the addition made by the AO under Section 68 in the hands of the partnership firm is sustainable when the capital was introduced by its partners, even if the source of the partners' funds is questionable.

Which sections of the Income-tax Act were involved?

Section 68

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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI R. K. PANDA & SHRI S.S. GODARA

For Appellant: Shri Sanket M Joshi
For Respondent: Shri Ramnath P Murkunde

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; प्रत्यर्थी / The Respondent 2.

3.

The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune गार्ड फाईल / Guard file. 5. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune

1.

S.No. Details Date Initials Designation 1 Draft dictated on 23.04.2024 Sr. PS/PS 2 Draft placed before author 23.04.2024 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Head 9 Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order

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