Held  that that the only reason stated by the Assessing Officer for making the addition under section 68 of the Act was that the firm which had declared the income under 2016 Scheme had not paid the taxes on declared income. For this reason the Assessing Officer held that the share of profit received by the assessee could not be claimed as exempt and thus taxable in the hands of the partners. The Central Board of Direct Taxes had issued a Circular No. 8 of 2014, dated March 31, 2014 ([2014 362 ITR (St.) 33) where it is clarified that income of the firm was to be taxed in the hands of the firm alone and could under no circumstances be taxed in the hands of the partners even if the income of the firm was declared as nil on account of deductions and exemptions. The Department on the one hand took the stand that the income belonged to the firm and on the other hand taxing the same income again in the hands of the assessee resulting in double taxation. From the perusal of the Board circular, it was clear that the income belonging to the firm whether disclosed or undisclosed could be taxed only in the hands of the firm and not in the hands of the partner. Accordingly, the income of Rs. 6,16,83,505 could not be taxed as income of the assessee under section 68 of the Act and the addition is  deleted.(AY.2016-17)