Case Law Details
Sunny Silks vs ACIT (Kerala High Court)
Kerala High Court held that addition to the capital account of the partner duly sustainable in law on account of failure of the assessee to furnish supporting evidence.
Facts- The petitioner had approached this Court impugning the assessment order, against which the petitioner had preferred an appeal before CIT(A). The petitioner had also moved an application for staying the demand issued in pursuance of the assessment order.
Notably, the addition u/s. 145A is seen to be done based on judicial pronouncements and therefore the merit in the addition can be considered only at the time of disposal of appeal. In view of the fact that the addition is disputed in appeal, you are hereby allowed to pay 20% of the demand upon which the balance will be stayed.
The next point of addition relates to addition in the Capital account of the partner. On verification of the records, it is seen that this specific issue was raised during the course of assessment and there was failure on your part to furnish supporting pieces of evidence which led to the addition being made. The merit in the addition can be considered only at the time of disposal of appeal. In view of the fact that the addition is disputed in appeal, you are hereby allowed to pay 20% of the demand upon which the balance will be stayed.
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