Where income of hospital as well as factory were estimated by estimating total receipt, expenditure should also be considered as out of total receipt

IT: Where gross receipt of assessee was enhanced in original assessment proceedings, no further addition to be made on basis of survey proceedings

IT: Where income of hospital as well as factory were estimated by estimating total receipt, expenditure should also be considered as out of total receipt

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[2014] 49 taxmann.com 148 (Rajasthan)

HIGH COURT OF RAJASTHAN

Commissioner of Income-tax

v.

Dr. Suresh Sharma*

DINESH MAHESHWARI AND ARUN BHANSALI, JJ.

IT APPEAL NO. 47 OF 2012†

JANUARY  14, 2013

I. Section 69 of the Income-tax Act, 1961 - Unexplained investment (General principles) - Assessment year 2002-03 - Assessee run a nursing home and owned a marble cutting plant - In survey proceedings, Assessing Officer found that assessee had not included certain purchase of medicine in purchases shown during year and, therefore, made an addition as undisclosed purchases - Assessing Officer further found that sale of medicines and fee charged by assessee was in ratio of 60:40 and, therefore, he enhanced sales and after giving adjustment for profit on sale of medicines, computed fee and made addition after deducting declared profit - Appellate authorities having noticed that total receipts shown by assessee was reasonable and Assessing Officer had already enhanced gross receipt in original assessment, deleted addition made by Assessing Officer - Whether there was no infirmity in impugned order - Held, yes [Para 7][In favour of assessee]

II. Section 69C of the Income-tax Act, 1961 - Unexplained expenditure (General) - Assessment year 2002-03 - In survey proceedings, Assessing Officer found that assessee had made payments in respect of factory and hospital expenses out of undisclosed income and, accordingly made addition - Appellate authorities having found that income of hospital as well as factory were estimated by estimating total receipt held that above expenditure should also be considered as out of total receipt and accordingly deleted addition - Whether no question of law arose out of impugned order - Held, yes [Para 7][In favour of assessee]

K.K. Bissa for the Appellant.