Capital Introduced by Partners Cannot Be Taxed in Firm’s Hands: ITAT Surat Deletes Addition of Rs. 2.52 Crore

Shakti Developers Vs ITO (ITAT Surat) Capital Introduced by Partners Cannot Be Taxed in Firm’s Hands: ITAT Surat Deletes Addition of Rs. 2.52 Crore Assessee, a partnership firm engaged in real estate development, filed Nil return for A.Y. 2017-18. AO, in absence of compliance, passed ex parte assessment u/s 144 on 15.12.2019 making addition of Rs. 2.52 crore as unexplained investment u/s 69, being capital introduced by partners, & Rs. 3 lakh as unexplained loan u/s 68. Entire amount was further taxed u/s 115BBE at 60% with surcharge. Before CIT(A), Assessee submitted that capital was int...