KANKE GENERAL HOSPITAL AND RESEARCH CENTRE PVT. LTD.,,RANCHI vs. DCIT, C.C.1, RANCHI

ITA 259/RAN/2025Status: DisposedITAT Surat25 September 20266 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision regarding the suppressed professional receipts of ₹25,05,000 and the bogus expenses of ₹5,00,000. The assessee's counsel did not present any fresh evidence to support claims that these receipts were accounted for or that the expenses were duly vouched. Therefore, these additions sustained by the CIT(A) were confirmed. Regarding the undisclosed investment in the building, the Tribunal acknowledged the assessee's argument that PWD rates should have been applied instead of CPWD rates, following the precedent of a Coordinate Bench. However, the Tribunal noted that the CIT(A) had already examined this issue and restricted the addition. Finding no infirmity in the CIT(A)'s order on this point, the Tribunal upheld the CIT(A)'s decision regarding the restricted addition. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The assessee, Kanke General Hospital & Research Centre Private Limited, is appealing against the order of the CIT(A), Patna-3, for Assessment Year 2017-18. The appeal stems from additions made by the Assessing Officer (AO) following a survey under Section 133A. During the survey, a discrepancy in medical store stock valuation was noted, leading to an excess stock of ₹14,98,628, which the assessee voluntarily offered for taxation. The AO also identified a difference in investment in assets and referred the property valuation to the District Valuation Officer (DVO). The AO made additions for suppressed receipts (₹25,05,000), bogus expenses (₹5,00,000), and undisclosed investment in property (₹3,04,56,985). The CIT(A) deleted the addition for stock difference, confirmed suppressed receipts and bogus expenses, and restricted the property investment addition to ₹53,84,728.

What were the issues?

1. Whether the learned CIT(A) erred in upholding the Assessing Officer's action of treating ₹25,05,000 as suppressed professional receipts, turning on Section 69 of the Income Tax Act, 1961. 2. Whether the learned CIT(A) erred in upholding the Assessing Officer's action of treating ₹5,00,000 as bogus expense, turning on Section 69 of the Income Tax Act, 1961. 3. Whether the learned CIT(A) erred in treating ₹53,84,728 as undisclosed investment in the building, turning on Section 69 of the Income Tax Act, 1961. Assessee's contentions: The assessee argued that the DVO incorrectly applied CPWD rates for property valuation, contending that PWD rates should have been used for construction in Ranchi, citing cases like Gita Kumari Vs ACIT and Poonam Devi Vs ACIT. The assessee also argued that the undisclosed professional receipts of ₹25,05,000 declared during the survey should be allowed as a set-off against any undisclosed investment added to its income. Revenue's contentions: The Revenue supported the order of the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(2),Section 142(1),Section 144A,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI RATNESH NANDAN SAHAY & SMT. RAJANI GUDURI

For Appellant: Shri D.V. Patty, Advocate
For Respondent: Shri Ram Chandra Marndi, Sr.DR
Hearing: 27/08/2026Pronounced: 25/09/2026

PER: BENCH

1.

This appeal by the assessee is directed against the order of the ld. CIT(A), Patna-3, Patna dated 30/05/2025 for the Assessment Year (AY) 2017-18 wherein the assessee has raised following grounds of appeal:

"

1.

For that the learned CIT(A) erred in upholding the action of the Assessing Officer for treating ₹ 25,05,000/- as suppressed professional receipts.

2.

For that the learned CIT(A) erred in upholding the action of the Assessing Officer for treating ₹ 5,00,000/- as bogus expense.

3.

For that the learned CIT(A) erred in treating ₹ 53,84,728/- as undisclosed investment in th

The order continues below.

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