No Section 68 addition of partners capital contribution in Firm if source of capital proved

Kesharwani Sheetalaya Sahsaon Allahabad Vs CIT (Allahabad High Court)

Conclusion: Addition under section 68 for not proving the source of income of partners who have made the deposit with the firm in their capital account could not be made as partners had shown the agricultural income in their personal returns of the past years which had been accepted by the department as such and the partners were all identifiable and separately assessed to tax thus, the source of investment having been explained and theref

Please become a Premium member. If you are already a Premium member, login here to access the full content.