Assessee not required to prove the source of source

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DCIT Vs. R. R.Builders (ITAT Mumbai) – There is no dispute that the partners of the assessee firm are also partners of the firm M/s Adarsh Octroi Services, Mumbai. We further find that the amount of Rs.5,25,000/- each was withdrawn by Shri Rafique Shakur Shekhani and Shri Sayed Rasul Shaikh partners of the firm on 15.4.2005 from their partnership firm M/s M/s Adarsh Octroi Services, Mumbai as per copy of cash book filed and the same amount was deposited by both the partners with the assessee firm on the same date. We further find that Rs.2,500/- each was deposited by Shri Rafique Shakur Shekhani and Shri Sayed Rasul Shaikh on 23.2.2006 out of their previous withdrawals from the same firm. Since the partners have proved the source of deposits and in the absence of any contrary material placed on record by the Revenue that there is no such corresponding withdrawals in the firm M/s M/s Adarsh Octroi Services or withdrawals made by the partners of the firm have been utilized for some other purpose and not for making deposits in the assessee’s firm and also keeping in view that it is settled law that the assessee is not required to prove the source of source, we hold that the ld. CIT(A) was fully justified in deleting the addition of Rs.10,55,000/- made by the AO. As regard the remaining amount of addition of Rs.5,000/-, we find that as per partners’ capital account there is no such deposit by the partners with the firm and in the absence of any basis for making such addition, we uphold the order of the CIT(A) in deleting the addition made by the AO. The ground taken by the Revenue is, therefore, rejected.