Addition for capital contribution from partners not sustained as identity of partners and genuineness of transaction established

GRR Holdings Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held that addition under section 68 of the Income Tax Act as unexplained credit towards capital contribution or amount received from partners not sustainable since identity of partners and genuineness of transaction was established. Accordingly, appeal of the assessee allowed.

Facts- M/s. GRR Holdings is a firm was incorporated on 31.01.2014 with two partners Shri Gaddam Shyam Prasad Reddy & Shri Syed Fayaz Mohammed. The main objective of the partnership firm is to carry on real estate business.