2001 (4) TMI 738 - AT - Income Tax

Summary

Issues: Appeal against order of Commissioner (Appeals) for assessment year 1990-91 - Addition of Rs. 2,59,187 for unutilized Intra Ocular Lens (IOL) units.

Analysis:
1. The appeal was made against the Commissioner (Appeals)'s order for the assessment year 1990-91, with 8 grounds initially taken by the assessee.
2. During the hearing, only the ground related to the sustenance of Rs. 2,59,187 was pressed by the counsel, leading to the dismissal of the remaining grounds.
3. The dispute revolved around the addition of Rs. 2,59,187 concerning the purchase and utilization of IOL units by the assessee, who is an Eye Specialist. The Assessing Officer questioned the wastage and damage of 35 IOL units, leading to the addition based on an estimated cost of operation.
4. The counsel for the assessee argued that the Assessing Officer could only disallow the purchase of lenses, not assume their use for operations without evidence. The counsel referenced a relevant case and highlighted discrepancies in the Assessing Officer's calculations.
5. The Departmental Representative supported the lower authorities' orders.
6. The Tribunal found in favor of the assessee, noting that the assessee had shown receipts for 66 IOL units, contradicting the Assessing Officer's assumptions. The Tribunal emphasized the lack of evidence supporting the Assessing Officer's estimates and upheld the assessee's claim of damaged IOL units, leading to the deletion of the addition.
7. Consequently, the appeal was allowed in part, and the addition of Rs. 2,59,187 was deleted based on the Tribunal's findings and analysis.