2022 (9) TMI 495

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Asst.Year 2013-14. 2. As transpires from orders of the authorities below, the ld.CIT had found the assessment order passed by the Assessing Officer (AO )in the present case to be erroneous on account of the fact that he had allowed the claim of expenses of the assessee pertaining to medical dispensary without examining the same, the assessee being a doctor, despite the facts demonstrating that the assessee had returned no income from the said dispensary and on the contrary had claimed huge expenses amounting to Rs.29,82,279/- on account of the same. The entire claim of the assessee therefore was allowed by the AO, as per the Ld.CIT, without examining this issue despite glaring facts raising doubts with respect to the said claim of the as....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d to Profit & loss account as per schedule A-OI 5. The Assessing Officer (A.O.) completed the assessment by passing an order u/s.143(3) of the Act on 31.12.2015, assessing total income at Rs.14,17,470/-with addition of Rs.8,375/- on account of disallowance u/s 14A of the I.T. Act, 1961. 6. Assessee has not shown any income from dispensary but had claimed huge ase-ises in the said account, most of the items are not allowable as not related to his income generating activities. Further, the assessee has not submitted any evidence in support of its contention that any free services have been provided by him at the dispensary and camps which resulted into the inflow of patients for surgery carried out at Rajasthan Hospital, if ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....refore, set aside the assessment order u/s. 143(3) dated 31.12.2015 in the case of the assessee for the A.Y.2013-14 and direct the A.O. to make a fresh assessment after making proper enquiries and verification about the nexus of the expenses as noted above with the income offered in this regard. Accordingly, the allowability of the expenses has to be verified." 3. Before us, the contentions of the ld.counsel for the assessee was that there is no illegality in the order of the AO since he had examined all relevant issues during the assessment proceedings and the fact was that the assessee had returned net profit at 28% in the impugned year which was commensurate with that returned in the earlier assessment yea. He contended therefore that....