Assessee was a partnership firm. During the relevant assessment year, one of its partners introduced capital. Assessee claimed that the source of capital was the partner\u2019s cash in hand.\u00a0 Assessing Officer held that the partner\u2019s ITR-4 for assessment year 2016-17 did not disclose any cash-in-hand balance. Accordingly, he treated said amount as unexplained under section 68 read with section 115BBE\u00a0 of the Act.\u00a0 Tribunal held that the assessee had furnished a copy of its cash flow statement and individual bank statement, without confronting the assessee regarding the genuineness of the claim, without making a necessary inquiry regarding submissions that had been put forth by the assessee. Revenue had made an addition which was perverse, arbitrary and bad in law. Since principles of natural justice were not followed and no inquiry on this aspect was made by the revenue, the addition made in the hands of assessee was deleted. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68: Cash credits-Partner\u2019s capital-Cash flow and bank statements-Addition was deleted. [S.115BBE] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61399","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fYj","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61399","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=61399"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61399\/revisions"}],"predecessor-version":[{"id":61400,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61399\/revisions\/61400"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}