Law:

Section:

Section 69 of the Income-tax Act, 1961 - Unexplained investment - Assessment year 1993-94 - It cannot always be held that merely because entry in capital account of partner was identified as a source of undisclosed income, firm was immune from being taxed, even where a colourable device was used by firm by introducing its undisclosed income by way of deposit by a partner [In favour of revenue] A partner under the Act is a separate entity and where there is separate income, the same may not be liable to be taxed in the hands of the firm merely because the credit entry is made in the accounts of the firm. There is no rigid rule that whenever a credit entry is in the capital account of a partner, addition could not be made in the hands of the firm even when the credit entry is, on the face of it, bogus or a device to evade tax. A single factor may not be sufficient to record whether the assessee had employed a colourable device or whether the partner had unexplained income which was credited in the books of account of the assessee. It cannot always be held that merely because the entry in the capital account of the partner was identified as a source of undisclosed income, the firm was immune from being taxed, even where a colourable device was used by the firm by introducing its undisclosed income by way of deposit by a partner. CASES REFERRED TO CIT v. Burma Electro Corporation [2001] 252 ITR 344 (P&H), CIT v. Daulat Ram Rawatmull [1973] 87 ITR 349 (SC), CIT v. Diamond Products Limited [2009] 21 DTR 9 (Delhi), CIT v. Metachem Industries [2000]245 ITR 160 (MP), Deputy CIT v. Rohini Builders [2002] 256 ITR 360 (Guj). Ms. Urvashi Dhugga for the Appellant. S.K. Mukhi for the Respondent. JUDGMENT Adarsh Kumar Goel, J. - This appeal has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated November 28, 2002 passed by the Income-tax Appellate Tribunal, Chandigarh Bench "A", in I. T. A. No. 213/Chandi/97 for assessment year 1993-94, proposing to raise the following substantial question of law : "Whether on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492