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TMI Blog2015 (11) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided against revenue. Disallowance of medical pathology expenses - CIT(A) allowed the claim - Held that:- Regarding this expenditure also, categorical findings were given by Ld. CIT(A) that these expenses are incidental to assessee’s professional activities and are allowable as business expenditure and payments were made through banking channel and the recipient M/s Medical Pathology Clinic has duly disclosed the receipts of this amount in its income tax return. Since Ld. DR of the Revenue could not controvert any of these findings of Ld. CIT(A), we find no reason to interfere - Decided against revenue. Addition made on account of Repairs & maintenance - CIT(A) allowed the claim - Held that:- These are professional expenses duly supported by proper bills and vouchers and payments were made through bank account. He has also given a finding that the expenses were incurred on account of repairs and maintenance of building, which was used by the assessee for his medical professional activities. Under these facts, we do not find any reason to interfere in the order of Ld. CIT(A) - Decided against revenue. Restricting the addition @ 10% from 25% of the vehicle running expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electricity expenses - CIT(A) deleted the addition - Held that:- AO made this addition at the rate of 50% of expenses on account of electrical charges without bringing any material on record, which could prove that the electrical expenses debited and claimed by the assessee in his books included the electrical expenses of assessee’s residence. At against this, it is noted by the Ld. CIT(A) that as per assessee, two electric meters are installed separately at his residence. Considering these facts, we do not find any reason to interfere in the order of the Ld. CIT(A) on this issue also because when separate electric meters are installed at the residence of the assessee, it cannot be said that electric from official meter was used for residential purpose without bringing any adverse material on record. - Decided against revenue. - ITA No.844/LKW/2014, CO NO.42/LKW/2014 - - - Dated:- 7-10-2015 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER For The Appellant : Shri Amit Nigam, DR For The Respondent: Shri J.J. Mehrotra, CA ORDER PER A. K. GARODIA, A.M. This appeal is filed by the Revenue and the CO is filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in subsequent year. He has also given a finding that the recipient M/s Neuro Surgery Clinic has duly shown the receipt on account of professional charges from the assessee in its income tax return. He has also given a finding that these expenses incurred by the assessee are incidental to his medical professional consultancy and same are allowable expenses. Ld. DR of the Revenue could not controvert these findings of Ld. CIT(A) and therefore, we find no reason to interfere in the order of Ld. CIT(A) on this issue. Accordingly, Ground No.1 is rejected. 6. Ground No.2 raised by the Revenue is as under:- 2. The Commissioner of Income Tax (Appeals), Lucknow has erred in law and on facts of the case in allowing the claim of medical pathology expenses amounting to ₹ 2.50 lacs ignoring the facts that it is always the patient who bear the pathology charges not the doctor himself. 7. Ld. DR of the Revenue supported the assessment order whereas Ld. AR of the assessee supported the order of Ld. CIT (A). 8. We have considered the rival submissions. We find that this issue was decided by Ld. CIT(A) by making following observation on page 21 of his order:- On e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenses incurred are incidental to his professional activity. Moreover these expenses were supported by proper bills vouchers and payments were made through bank account. The A.O. did not raise any doubt in respect of expenses incurred and payment thereof. Since the expenses incurred on account of repairs maintenance of building which was used by appellant for his medical professional activity. Therefore, the expenses incurred of ₹ 1,84,720/- cannot be said non professional expenses incurred or capital expenditure, which was not allowable. Keeping in view of these facts, I hold that AO was not justified in making the disallowance of ₹ 1,84,720/- and same is liable to be deleted. The A.O. is directed to delete the addition of ₹ 1,84,720/-. Thus the appellant gets relief of ₹ 1,84,720/-. 13. From the above Para reproduced from the order of Ld. CIT(A) also, it is seen that for this expenses also, similar findings are given by the Ld. CIT(A) that these are professional expenses duly supported by proper bills and vouchers and payments were made through bank account. He has also given a finding that the expenses were incurred on account of repairs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on remand report and finding given in assessment order and remand report I find much force in the argument of appellant that the A.O. was not justified in making the addition on account of private medical professional receipts in the hands of appellant during the assessment year under consideration. The A.O. did not bring any material on record in assessment proceedings and even in remand proceedings which could prove that the appellant did not private medical professional consultancy in lieu of professional receipts estimated by the A.O. of ₹ 43,80,000/-. I find that the A.O. has taken the professional receipts without conducting the necessary enquiries and brought any material on record to justify the huge undisclosed professionals receipts of ₹ 43,80,000/-. As evident from the return income filed by the appellant that he had received professional and technical receipts from Sahara Hospital and disclosed net professional income at ₹ 1,28,81,200/-. The AO did not bring any material on record which could prove that the appellant has violated the terms condition of professional technical services made with Sahara Hospital in respect of professional services pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and on the facts of the case in deleting the addition of ₹ 1,00,000/- made treating the income from agriculture as income from other source, ignoring the fact that the assessee did not produce the details of holding of agricultural land and evidence regarding sale of agricultural produce. 22. Ld. DR of the Revenue supported the assessment order and Ld. AR of the assessee supported the order of the Ld. CIT(A). 23. We have considered the rival submissions. We find that this issue has been decided by the Ld. CIT(A), on this basis that the assessee has owned agricultural land approx 10 bighas irrigated on which agricultural activities were carried out through agricultural labours. He has also noted that the assessee has shown agricultural income in earlier and later years and the same was accepted by the AO without taking any adverse inference. Ld. CIT(A) has also referred to Tribunal s order rendered in the case of Dr. Chandra Gupta Vs. ACIT, in ITA No.268/Lkw/2011 dated 25.06.2014. Considering these facts, we do not find any reason to interfere in the order of the Ld. CIT(A) on this issue also. Accordingly, Ground No.6 is also rejected. 24. Ground No.7 raised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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