Partner’s Capital Introduction Cannot Be Taxed in Firm’s Hands – Section 68 Addition Deleted

Tarmo IT Services Vs ACIT (ITAT Delhi) Partner’s Capital Introduction Cannot Be Taxed in Firm’s Hands – Section 68 Addition Deleted Delhi ITAT held that cash introduced by partners as capital cannot be assessed as unexplained cash credit u/s 68 in the hands of the partnership firm. The AO had made an addition of ₹52,00,000 u/s 68 on account of capital introduced by two partners, alleging inability to match earlier withdrawals with subsequent deposits. The addition was confirmed by NFAC-CIT(A). ITAT noted that it was an admitted fact that the impugned amounts were introduced by partners...