During the assessment, the AO treated partners\u2019 fresh capital contribution\u00a0 as unexplained cash credit u\/s 68 for lack of creditworthiness proof. On appeal, the CIT (A), after examining partners\u2019 PAN, bank statements, ITRs, and capital accounts, held that identity, creditworthiness, and genuineness were established and deleted the addition, noting that a firm need not prove the source of partners\u2019 income. The ITAT upheld this, observing that the assessee discharged its burden by furnishing evidence, and the AO failed to rebut or file a remand report. Revenue\u2019s appeal was dismissed. ITA No. 3459\/Mum\/2025 dated 30\/07\/2025<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Firm -Partners-Once partners\u2019 identity, creditworthiness, and genuineness of capital contribution are established through evidence, addition u\/s. 68 cannot be made in the firm\u2019s hands, as the firm is not required to explain the source of partners\u2019 funds. [S. 2(31)(iv)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-57231","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eT5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=57231"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57231\/revisions"}],"predecessor-version":[{"id":57232,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57231\/revisions\/57232"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=57231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=57231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=57231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}