2026 (3) TMI 774

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....cer [AO] u/s. 143(3) of the Act on 26-09-2021. The sole grievance of the assessee is confirmation of twin additions of Rs. 41.94 Lacs & addition of Rs. 50 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. Proceedings before lower authorities 2.1 The impugned assessment stem from survey action by the department u/s 133A(1) on 22-02-2019 at assessee's premises situated at Nalagarh, Baddi wherein the assessee carried on a medical diagnostic center under the name and style of M/s Akash Ultra Sound. Subsequently, the assessee filed return of income u/s 139(1) on 24-02- 2020 declaring income of Rs. 12.99 Lacs which was subjected to scrutiny. 2.2 The impugned addition stem from the....

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....ferrals doctors were paid commission which stood corroborated from the statement of Dr. Neelam Gupta who was related to the assessee and working as a Radiologist at the center. The Ld. AO applied commission rate of 25% on sales of Rs. 2 Crores and computed unaccounted commission payment by the assessee for Rs. 50 Lacs. The same would not be allowed as deduction u/s 37(1) being violative of provision of Indian Medical Council Rules. The statement of the assessee was also recorded but she expressed inability to explain the discrepancies owing to the fact that she was not attending the center actively. 2.5 The assessee, in its reply, opposed estimation of sales on the ground that sample as taken by Ld. AO was not reliable and accurate. Ther....

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....1-2018 to 13-12-2018. Based on this data, Ld. AO has computed that roughly 18% of the sales were recorded by the assessee in its regular books of accounts. Apart from, there is no incriminating material for sales suppression except for the statement of employees of the assessee. This data has been extrapolated by Ld. AO to arrive at sales suppression for whole of the year. For payment of alleged referral commission, there is no incriminating material but the same is merely on the basis of statements alone. As per settled legal position by case law of Hon'ble Madras High Court in S. KhaderKhan Son (300 ITR 157)as confirmed by Hon'ble Apex Court (reported as 352 ITR 480), such statements u/s 133A would not carry much evidentiary value. If....