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TMI Blog2024 (8) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings to substantiate the same that does not fall under unethical Acts under the professional conduct, Etiquette and Ethics Regulations, 2002 of Indian Medical Council HELD THAT:- Assessee has failed to respond to any of the notices during the assessment proceedings. Subsequently, during the First Appellate Proceedings, assessee submitted various documents before the CIT(A) for which the Remand Report was obtained from the AO regarding verification of allowability of such expenditure. AO in his Remand Report objecting to such expenditure which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business. In addition to the above the AO also objected to the non submission of bank stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issed. - SHRI DUVVURU RL REDDY, HON BLE JUDICIAL MEMBER And SHRI S BALAKRISHNAN, HON BLE ACCOUNTANT MEMBER For the Assessee : Shri G.V.N. Hari, AR For the Department : Dr. Aparna Villuri, Sr.AR ORDER PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER : 1. This appeal and cross objection are filed by the assessee and revenue respectively, against the order of Learned Commissioner of Income Tax (Appeals) [hereinafter in short Ld. CIT(A) ], National Faceless Appeal Centre (NFAC), Delhi in DIN Order No. ITBA/NFAC/S/250/2023-24/1057516271(1) dated 30.10.2023 arising out of order passed Under section 143(3) of the Income Tax Act, 1961 (in short Act ) dated 15.02.2021 for the A.Y. 2018-19. 2. Brief facts of the case are that, assessee a hospital filed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee filed documentary evidences with respect to the nature of expenses incurred and supporting bills and vouchers and the Ld. CIT(A) forwarded the additional documentary evidences submitted by the assessee to the Ld. Assessing Officer calling for Remand Report. Assessing Officer furnished the Remand Report on 08.03.2023. The Remand Report of the Assessing Officer was forwarded to the assessee for rejoinder which was submitted by the assessee. Considering the Remand Report and the Rejoinder and other explanations and information s provided by the assessee, the Ld. CIT(A) partly allowed the appeal of the assessee by restricting the disallowances to 50% of the expenses claimed by the assessee. 5. Aggrieved by the above order, assessee is in app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carrying out the business of the assessee and therefore entitled to be allowed under section 37(1) of the Act. He therefore pleaded that the balance 50% shall be allowed to the assessee. 8. Per Contra, Ld. Departmental Representative [hereinafter in short Ld. DR ] relying on the order of the Assessing Officer stated that the Ld.CIT(A) has also accepted the fact that the assessee has not substantiated the exact nature of expenditure and has not submitted any counter regarding the stand taken by the Assessing Officer on the violation of Indian Medical Council Act Regulations. He therefore pleaded that the Ld. CIT(A) erred in restricting the disallowances to 50% without any verification and providing reasons for such estimation of partial reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as follows: - 4.2 As per the Indian Medical Council Act, 1956 (professional conduct ethics) regulations, 2002, under Chapter 6, 'Unethical Acts', a physician shall not aid or abet or commit any of the following acts which shall be construed as unethical - Advertising: 6.1.1 Soliciting of patients directly or indirectly, by a physician, by a group of physicians or by institutions or organisations is unethical. A physician shall not make use of him / her (or his / her name) as subject of any form or manner of advertising or publicity through any mode either alone or in conjunction with others which is of such a character as to invite attention to him or to his professional position, skill, qualification, achievements, attainm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. We also find that the assessee has not substantiated the claim of expenditure which are to be allowed under the Indian Medical Council professional conduct, Etiquette and Ethics Regulations, 2002. 11. Similarly, the Ld. CIT(A) has also observed that the assessee has not discharged onus that the said expenses are wholly and exclusively for the purpose of business under section 37 of the Act. Further, we find that the Ld.CIT(A) has arbitrarily without any categorical findings has observed as follows: - 14. . Besides this, further by not substantiating the exact nature of expenses, it has also not countered the stand of the AO regarding the violation of Indian Medical Council Act regulation s and hence, looking into the overall submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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