2016 (1) TMI 491

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....ompleted u/s 143(3) by the AO on 22.3.2013 determining the total income at Rs. 4,03,690/-. Aggrieved, the assessee carried the matter in appeal without success. Further aggrieved, the assessee is before us on the following grounds:- "1. That the prejudicial observations contained in the body of Appellate Order U/s 250 are either unfounded or the same are not susceptible of giving rise to any adverse conclusion. 2. That the learned C.l.T.(A) has erred in confirming the addition of Rs. 22180/- for Disallowance out of actually incurred & shown professional expenses (Clinic Expenses) towards Electricity, Telephone, Conveyance visiting other Nursing Homes & Misc. Exp. Totalling to Rs. 88714/- in whole of the year, by simply men....

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....40A(iii). The assessee had purchased medical instruments worth Rs. 25,000/- in cash. He further purchased medical instruments, beds, etc., for Rs. 1,23,445/-. As this purchases were made in cash, disallowance was made u/s 40A(iii). The assessee claims that the amounts were actually paid on different dates in cash, below Rs. 20,000/- and, hence, the provisions of section 40A(iii) will not apply. 5. As the assessee does not deny the fact of having incurred expenditure for purchases by way of cash above Rs. 20,000/-, in my view, the first appellate authority was right in upholding this disallowance. The findings on page 5 of the order of the ld.CIT(A) are confirmed. 6. The next addition is disallowance of bank interest. The disallowance ....

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....diture account had debited bank interest at Rs. 64,563/- on account of housing loan interest whereas on the other hand, he had already debited the interest of Rs.l,45,133/- on account of housing loan. On the other hand the appellant has contended loan of Rs. 15,00,000/- was obtained on 03-04-2006 from Punjab National Bank for construction of house up to the year 2006 and interest of Rs.l,45,133/- was paid towards interest on housing loan. As per the appellant in the year 2007 fresh loan was raised for Nursing Home purposes and interest was paid to bank at Rs. 64,563/-. The appellant has furnished copy of Loan Proposal/Sanction Letter dated 07-02-2007 issued by Punjab National Bank in support of his claim. It is observed th....