9911796707
TMI Blog2023 (4) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... tal profession receipts of approx. Rs. 3.45 crores, out of which, the Assessee has returned the income of Rs. 1.59 cores, which seems to be quite reasonable. PCIT has failed to point out any discrepancy in the accounts of the Assessee, but only suspected the genuineness of the cash book by bifurcating the receipts between the different period of years, which, in our view, cannot be held to be justified for exercise of revisionary jurisdiction u/s 263 and thereby subjecting the Assessee to de novo assessment. Certain increase in the salary of two employees and having made certain payments to DLF for office space at Delhi, disallowance use u/s 36(1)((iii) of the Act etc. - As we find that the case of the Assessee was not selected for scrutiny on these issues. The only issue for which the case of the Assessee was selected for scrutiny u/s 143(3) of the Act was in respect of 'the high value receipt of cash shown from third parties in response to data and payment of tax in cash during demonization period' Since the case was not selected for scrutiny on these issues, therefore, it cannot be said to be any error in the order of the AO has occurred, even if the said issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the interest of the revenue without specifying any such item on the basis of which it could be so held. 3. The brief facts of the case are that the Assessee runs a Nursing Home at Palampur. The Assessee during the year declared an income of Rs. 1,59,70,983/-. The return of the Assessee was scrutinized u/s 143(3) of the Income Tax Act, 1961 (hereinafter called 'the Act') and the return of income was accepted by the AO vide order dated 5.12.2019 to verify the 'high value receipt of cash shown from third parties in response to data and payment of tax in cash during demonization period during the year'. Thereafter, the Ld. PCIT exercised his revision jurisdiction u/s 263 of the Act. The Ld. PCIT observed that the AO has not conducted the necessary enquires to ascertain and to verify the issue for which the case was selected for scrutiny. The Ld. PCIT issued show cause notice to the Assessee, in response to which, the Assessee made the following submissions before the Ld. PCIT. 4. The written submissions of the assessee as submitted on 10.03.2022 are reproduced as follows: - With reference to your notice for initiating proceedings under section 263 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d) JSSK Scheme income Rupees 81,830/- e) Ultrasound income Rupees 94,83,970/- f) RSBY scheme Rupees 5,09,687/ - The total receipts of the assessee is rupees 3,45,22,112/-. At the same time he has declared the net income at rupees 1,48,33,94/- in the profit and loss account attached here with. (See page 2 to 40) If you go through the past history of the assessee he is among top tax payers. It is requested that no interference in the assessment order is called for on the issue of cash deposited during demonization. 2. Salary paid to doctors: - The assessee has paid salary to doctors at rupees 1,12,12,000/-, the assessee has also increased the salary during the year. I would like bring in your kind notice that three doctors are working in nursing house: - a) Dr Sushma Kapila MBBS, retired as senior medical officer from state services. b) Sameer Kapila MBBS MD Radiology c) Dr Sonali Kapila MBBS MD Gynecology The doctors working in the nursing homes are though family members but having post graduate degrees, if the assessee has paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash- in-hand, however, the Ld. PCIT was not satisfied with the cash book and noted that the cash book pertained to only for the period 29.8.2016 to 1.12.2016 and that the Assessee had shown opening cash in hand to the tune of Rs. 5,22,290/- as on 29.8.2016. She observed that the opening cash in hand was not verifiable from the details submitted by the Assessee. 5. However, the Ld. counsel for the assessee has brought our attention to the subsequent part of the order of the Ld. PCIT to submit that the Assessee, not only before the AO but also before the Ld. PCIT, had furnished a copy of the ledger account in respect of the OPD receipts, laboratory receipts, indoor receipts and ultrasound receipts. The Assessee, thus, has shown the total receipts during the year. The Ld. PCIT has also tabulated such receipts in a Chart in the impugned order. Nothing has been mentioned in the order of Ld. PCIT that the said receipts were non-verifiable. 6. The Ld. DR, on the other hand has supported the order of the Ld. PCIT. 7. We have heard the rival submissions and have also perused the material on record. The Assessee had duly shown various receipts along with nature of receipts etc. an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues. The only issue for which the case of the Assessee was selected for scrutiny u/s 143(3) of the Act was in respect of 'the high value receipt of cash shown from third parties in response to data and payment of tax in cash during demonization period'. However, Ld. Counsel for the Assessee has demonstrated that even all the details were furnished in respect of above issues also before the AO and the AO has examined the above issues. Since the case was not selected for scrutiny on these issues, therefore, it cannot be said to be any error in the order of the AO has occurred, even if the said issues in the opinion of the Ld. PCIT were not thoroughly examined as of the selection of the case was for limited scrutiny. The AO, otherwise, was not supposed to go into these issues. In view of this, it cannot be said that there was any error in the order of the AO on these issues, therefore, the exercise of revisionary jurisdiction of the Ld. PCIT in respect of the aforesaid issues cannot be held to be justified. 9. In view of our above discussion, we hold that the exercise of revision jurisdiction by the Ld. PCIT in the above case is bad in law and, therefore, the impugned revis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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