TaxTMI 
TaxTMI 
TaxTMI 
2016 (4) TMI 1314
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....ed payment of employees' contribution to ESI. iii) The learned Commissioner of Income Tax (Appeals) has erred in sustaining the disallowance of Rs. 71,62,741/- made by the learned Assessing Officer under section 37 of the Act being marketing expenses. iv) The learned Commissioner of Income Tax (Appeals) has erred in sustaining the disallowance of Rs. 3,25,000/- being expenses incurred on consumables and on repairs under section 40A(3) of the Act. 3. Brief facts of the case are that the assessee is a private limited company engaged in the business of running multispecialty hospital, filed its return of income on 05.10.2012 for the assessment year 2012-13 and subsequently filed its revised return on 25.09.2013 admitting income of Rs. 3,35,22,730/-. After scrutiny, the learned Assessing Officer completed the assessment under section 143(3) of the Act on 26.02.2015 whereby various additions/disallowances were made. On appeal, the learned Commissioner of Income Tax (Appeals) confirmed the order of the learned Assessing Officer against which the assessee is now in appeal before us. Ground No.1: Restricting the depreciation to 15% as against 40% claimed by the assessee on life saving ....
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....ity of radiotherapy treatment delivery before and after treatment. 4. AESPIRE Workstation: A compact anesthesia delivery system with a large color ventilator display and a full suite of ventilation modes, ideal for hospital Ors and stand alone surgery centers. As per I.T.Act it is classified as a life saving equipment. 5. AW 4.2 Workstation AW 4.2 Workstation is an advanced computer system with powerful software that provides a platform for multi modality radiology image (MRI etc) management, review, comparison and processing. 6. BRAINLAB (SRS/SRT) Computer: Brain Lab is an advanced solution for rendering stereotactic radio surgery and stereotactic radio therapy using a linear accelerator. Stereotactic radio surgery is an non-surgical radiation therapy used to treat functional abnormalities and small tumors of the brain. It can deliver precisely targeted radiation in fewer (1-5) high dose treatments than traditional therapy, which can help preserve healthy tissue. 7. Computer: Computers used in the hospital for processing of medical information. 8. Endoscopy Software: Software used for capturing diagnostic and therapeutic endoscopic images wherein endoscopy is a life savi....
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.... Act and made the addition. The learned Commissioner of Income Tax (Appeals) confirmed the order of the learned Assessing Officer by observing as follows:- "8.4 After studying the decisions of Hon'ble Gujarat High Court in favour of the Revenue and ITAT., Chennai in favour of the assessee, I have noticed that the Hon'ble ITAT, Chennai has not referred to the decision of the Hon'ble Gujarat High Court. Besides the Hon'ble Gujarat High Court has decided after going through the apex court's decision in the case of Alom Extrusions Ltd. (319 ITR 306) which was relied on by the ITAT., Chennai. In my considered opinion, the Hon'ble High Court of Gujarat has dealt with the issue in favour of Revenue after taking into consideration all the relevant case laws on this issue. Therefore, respectfully following the decision of Hon'ble Gujarat High Court, I am of the considered opinion that the belated employee's contribution to ESI beyond the due date prescribed U/s.36(1)(va) of the Act is not eligible for deduction U/s.43B although it was paid before the due date for filing of return U/s.139(1) of the Act. Accordingly, the disallowance made by the Assessing Officer is upheld and the grounds ar....
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.... and such payments or gifts are not prohibited by any regulations. He also argued stating that hospitals are not prohibited to advertise the services they are capable of rendering to the public at large. It was therefore pleaded that disallowance made by the Revenue may be deleted. 15. The learned Departmental Representative on the other hand vehemently argued in support of the orders of the Revenue. 16. After hearing both sides, we find merit in the contention of the learned Authorized Representative. There is no prohibition in the Act to make payments to Doctors for the services rendered by them. In the case of the assessee, gifts were given to Doctors by way of gold coins in appreciation to their services. It can be construed as the fees paid in kind for the services rendered by the Doctors in the hospital. The presumption of the learned Assessing Officer that these payments are made to Doctors for canvassing patients cannot be accepted without any cogent evidence. Further the Revenue has not quantified the amount for which invoices, bills are not available for the expenditure incurred and the nature of unexplained expenses. Hence, it appears to be a passing remark. Therefore,....