Income already taxed in proprietor’s hands cannot be taxed again in dissolved partnership

ITO Vs Chaukers (ITAT Delhi) No Addition in Dissolved Firm’s Hands – Cash Deposits Taxable Only in Hands of Proprietor, Not Partnership: ITAT Delhi Assessee was a partnership firm dealing in LPG cylinders under dealership of Hindustan Petroleum. One partner, Shri Avinash C. Kakar, expired on 23.04.2011, after which the firm effectively dissolved & business continued solely under Shri Balraj Bansal as proprietor. During demonetisation period, heavy cash deposits of Rs.79.78 lakh were made in the bank account, along with other credit entries totaling Rs.4.67 crore. AO held the firm s...