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of <h1>Tax Tribunal Overturns Unjustified Additions for X-Ray Receipts and Discounts Due to Lack of Evidence in 2011-12 Case.</h1> <h3>Mewar Hospital Pvt. Ltd. Versus Assistant Commissioner of Income tax, Central Circle-2, Udaipur</h3> Mewar Hospital Pvt. Ltd. Versus Assistant Commissioner of Income tax, Central Circle-2, Udaipur - TMI Issues involved:1. Challenge to the order of Ld. CIT(A)-II, Udaipur for the assessment year 2011-12.Analysis:1. The appeal raised various grounds challenging the order of Ld. CIT(A)-II, Udaipur. Grounds 1 and 2 were not pressed during the hearing and were dismissed. Ground 3 related to the part addition sustained on account of X-Ray receipts. The AO made an addition of Rs. 3,87,730, which was reduced to Rs. 3,12,338 by CIT(A), granting relief of Rs. 75,392. The appellant argued that the entire basis for the addition was unjustified, citing factors like wastages, errors, and judicial decisions supporting their stance.2. The Tribunal found that the addition lacked a proper basis for the year under consideration, as no material or evidence was presented. The estimation of suppression of X-Rays was deemed unsubstantiated, with no allegations of receipts suppression. The Tribunal directed the AO to delete the sustained addition of Rs. 3,12,338.3. The next issue concerned the addition for discounts. The AO added Rs. 18,81,845 for discounts, partially upheld by CIT(A) at Rs. 4,70,461. The AO's rationale was that claimed discounts were unverifiable, estimated based on the search findings. However, the Tribunal noted that no discount claims were made during the year, and the addition was solely based on estimations.4. The Tribunal observed that the absence of discount claims rendered the addition unjustified. The addition was made on suspicion alone, without evidence of receipts suppression. As discounts were linked to corresponding receipts, the Tribunal directed the deletion of the addition. Consequently, the appeal of the assessee was allowed, with the order pronounced on 20/03/2020.
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