Partner has brought in cash as capital.. the case is selected for scrutiny... is any violation committed under income tax act...?????
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Please advice
Replies (8)
the requirement is to quote any section or case law where the same is permissible...
no violation under the income tax act.
wru from ???
chennai..... the requirement is quote any case law or section no where the same is permitted ot not dissallowable...
friend...partnership wont work only if no capital is brought in..business needs money...n it comes from its partners...
u urself tell me is share of share disallowable...
of course not...hence there is no section...its a matter of common sense...
hope i resolved the issue...
good try friend.... but the practice is not as simple as common sense.. the capital is brought in as CASH.. and not routed through bank.. so it is getting added to income... and now this needs to be justifeid...
If the amount of the CASH brought for SHARE in PARTNERSHIP is Substantial or Greater in SIZE than the SOURCE of the same has to be Disclosed if the same is ASKED for & if it is Unaccounted CASH the same may be ADDED TO the Income by the Assessing Officer.
Regards
Mitul Shah
friend....u didn't say that its undisclosed cash investment n it would b correctly added to income u/s.69 if the source or accounting entry can not b justified....
u/s.68, 69 , 69A,B,C need strong explanation...
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