Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, AHMEDABAD ‘D’ BENCH, AHMEDABAD
By way of this appeal, the assessee-appellant has challenged correctness of the order dated 3rd March 2014, passed by the learned CIT(A)-XX, Ahmedabad, in the matter of assessment under section 143(3) of the Income-tax Act, 1961, for the assessment year 2010-11.
Grievances raised by the appellant are as follows:-
“1. The CIT (Appeals)-XX, Ahmedabad has erred in law and on facts of the case in confirming the disallowance of RSBY expenses and RSBY medicines of Rs.20,14,867/- though such expenses are duly supported by bills and vouchers and the payment with regard thereto has been made through cheques only and the appellant has maintained various prescribed registers under Rule 6F(3).
The CIT (Appeals)-XX, Ahmedabad has erred in law and on facts of the case in confirming the reliance placed by the Assessing Officer on statement recorded u/s 133A though the same has no evidentiary value.”
To adjudicate on this appeal only a few material facts need to be taken note of. The assessee before us is a medical professional and he has rendered services to
I TA N o. 1 3 5 7/ Ah d /2 0 1 4 D r. S u re s h M a nji b h ai Pr a ja p a ti Vs . A CI T Ass e ss me n t Y ea r : 2 0 10 - 1 1 Page 2 of 3 patients under Rashtriya Swasthya Bima Yojna (RSBY) as well. On 13th October 2009, his premises was subjected to survey under section 133A, and, during this survey, his statement was also recorded. In response to one of the questions asked during these proceedings, the assessee had stated that out of the receipts under RSBY, the actual expenditure is about 30% of gross receipts. However, in the profit and loss accounts filed by the assessee alongwith his return of income, the assessee had shown expenditure of Rs.35,16,770/- as against the gross receipts of Rs.50,06,343/- under RSBY. On these facts, the Assessing Officer restricted the deduction of expenses to 30% of receipts, and disallowed the balance amount of Rs.20,14,867/-. Aggrieved, assessee carried the matter in appeal before the CIT(A) but without any success. The assessee is not satisfied and is in further appeal before us.
We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position.
We find that the authorities below have rejected the details of expenses, and evidences in support thereof, merely on the ground that the assessee himself had accepted that expenditure incurred under RSBY is only 30% of receipts. This approach is fallacious and untenable in law for several reasons. It is only elementary that a statement recorded under section 133A has no evidentiary value. Hon’ble Madras High Court has held so in the case of CIT vs. S Khader Khan Son [(2008) 300 ITR 157 (Mad)] and Hon’ble Supreme Court has, vide judgment reported as CIT Vs. Khader Khan Son [(2012) 254 CTR 228 (SC)], has dismissed appeal against the same. In any event, what was stated by the assessee was only estimated expenditure against RSBY receipts but then it is not really necessary that entire expenditure must be incurred in the same period in which receipts are accounted, and therefore wherever cash method of accounting is followed – as in this case, the direct correlation between the profit and loss account income and expenditure figures is not always necessary. What is also important is that when assessee makes a claim for expenditure, it cannot be summarily dismissed, without even looking at the supporting evidences, by adopting some estimation on whatever basis. The authorities below were thus unjustified in rejecting the claim of deduction at actuals, on the basis of surmises and conjectures. Such an action cannot meet any judicial approval.
I TA N o. 1 3 5 7/ Ah d /2 0 1 4 D r. S u re s h M a nji b h ai Pr a ja p a ti Vs . A CI T Ass e ss me n t Y ea r : 2 0 10 - 1 1 Page 3 of 3
In view of the above discussions, as also bearing in mind entirety of the case, we direct the Assessing Officer to delete the impugned disallowance of Rs.20,14,867/-. The assessee gets the relief accordingly.
In the result, the appeal is allowed. Pronounced in the open court today on the 16th November, 2018
Sd/- Sd/-
Justice P P Bhatt Pramod Kumar (President) (Vice President) Ahmedabad, the 16th day of November, 2018 **bt
Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File
By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad
Date of dictation: .......4 pages manuscripts of hon’ble VP attached– 08.11.2018... 2. Date on which the typed draft is placed before the Dictating Member: .. 11.11.2018..... 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …16.11.2018... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement: .. 16.11.2018. 5. Date on which the file goes to the Bench Clerk : . 16.11.2018……. 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: …. 8. Date of Despatch of the Order: ………………......