J.C. & Sons, Baroda vs Assessee

आयकर अपीलीय अिधकरण, अिधकरण, अहमदाबाद यायपीठ ''B'', अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, "B" BENCH सव ौी ौी जी.

जी.सी.

सी.गु ा, माननीय उपा!य", उपा!य", एवं अिनल चतुवद ' (, (, लेखा सदःय के सम" ।

BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER)

ITA No.1118/Ahd/2011 [Asstt.Year : 2006-2007]

M/s.J.C. & Sons बनाम/Vs. ITO, Ward-2(3) Shriji Krupa, 25/C, Baroda.

Pratapnagar Society Nr. Rosary School, Baroda.

PAN : AAEFJ 1057 A

(अपीलाथ. / Appellant) (ू0यथ. / Respondent)

िनधा 1रती क2 ओर से/ : Assessee by Shri M.J. Shah, राजःव क2 ओर से/ : Revenue by Shri Roopchand, Sr.DR सुनवाई क2 तार(ख/ : Date of Hearing 6th January, 2015 घोषणा क2 तार(ख/ : Date of Pronouncement 02-02-2015

आदे श / O R D E R

PER G.C. GUPTA, VICE-PRESIDENT: This appeal by the assessee for the Asstt.Year 2006-2007 is directed against the order of the CIT(A).

2. Only ground of the appeal of the assessee is as under:

"1. The ld.CIT(A) has erred in law and on facts and has dismissed the appeal thereby confirming the addition of Rs.9,27,614/- u/s.68 of the IT Act."

3. The learned counsel for the assessee submitted that the amount representing the credit in the accounts of the partners could not be ITA No.1118/Ahd/2011

considered in the hands of the assessee-firm, and should have been considered in the individual assessment of the partners. He submitted that the issue is covered in favour of the assessee with the decision of the Hon'ble jurisdictional High Court in M/s.Maharashtra Packing Vs. ITO, in Tax Appeal No.325 of 2002 order dated 17.11.2014. The learned DR has relied on the orders of the AO and the CIT(A).

4. We have considered rival submissions. The fact that the addition was made on account of credit entries in the accounts of the partners of the assessee-firm, is not in dispute. The issue is covered in favour of the assessee with the decision of the Hon'ble jurisdictional High Court in M/s.Maharashtra Packing Vs. ITO (supra), and therefore the issue of addition for credit in the accounts of the partners could not have been considered in the hands of the assessee-firm, and in case the AO was not satisfied with the sources of credits in the accounts of the partners, they were entitled to proceed against the partners and assess the same in the hands of the partners. Accordingly, the issue is decided in favour of the assessee and the ground of the appeal of the assessee is allowed.

5. In the result, the appeal of the assessee is allowed. Order pronounced in Open Court on the date mentioned hereinabove.

Sd/- Sd/- अिनल चतुव'द( / ANIL CHATURVEDI) (अिनल (जी. जी.सी. सी.गु ा/G.C. GUPTA) लेखा सदःय /ACCOUNTANT MEMBER उपा!य" /VICE-PRESIDENT

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