Three persons, out of whom two were partners of the assessee-firm, made investments in the assessee-firm which were transferred to the unsecured loan account by way of a journal entry. The Assessing Officer came to the conclusion that they did not have the creditworthiness to advance the cash credit and doubted the genuineness of the transactions. Order of the Assessing Officer is affirmed by the Tribunal. On appeal the Court  held that  the unexplained cash credits would have to be assessed at the hands of the partners of the firm and not the firm itself. Such amounts could not have been treated as income of the firm relying upon section 68 of the Act. The Tribunal was not justified in upholding the investments made by the two partners as addition on the ground that the investment made by the partners is undisclosed income of the firm. (AY.1998-99)