Addition U/s. 68 for Capital contribution to firm by partner

Pr. CIT Vs. Vaishnodevi Re foils & Solvex (Gujarat High Court) Gujarat High Court: Firm Not Liable for Partner’s Capital Creditworthiness Under Section 68 Ahmedabad: In a ruling by the Gujarat High Court, it has been held that a partnership firm cannot be held liable under Section 68 of the Income-tax Act, 1961, for the creditworthiness of capital introduced by a partner, provided the firm has furnished details of the source and the partner has confirmed the contribution. The court reiterated its earlier stance, affirming that the onus to prove creditworthiness in such a scenario shi...