COMMISSIONER OF INCOME TAX Vs. SURESH SHARMA

JUDGEMENT

(1.) THE present appeal under Section 260A of the Income Tax Act, 1961 ['the Act'] has been filed by the Revenue seeking to question the order dated 09.12.2011 passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ['the Tribunal'] in ITA No.659/JU/08 and C.O. No.25/JU/2009 for the assessment year 2002 -2003 whereby the Tribunal has affirmed the order dated 17.09.2008 passed by the Commissioner of Income Tax (Appeals), Udaipur ['the CIT(A)'] partly allowing the appeal preferred by the assessee and deleting the additions, of Rs.1,35,441/ - on account of unaccounted purchase of medicine, Rs.6,88,687/ - on account of fees and Rs.40,61,361/ - as unexplained factory and hospital expenditure, as made by the Assessing Officer ['the AO'] in the assessment order dated 31.12.2007. Having heard the learned counsel for the appellant and having perused the material placed on record, we are clearly of the view that the present appeal essentially raises issues relating to appreciation of evidence resulting in finding on facts; and no substantial question of law is involved.

(2.) THE facts of the case may be noted thus: The assessee runs a nursing home and also owns a marble cutting plant. The assessee filed his original return of income for the assessment year 2002 -2003 on 08.03.2004 declaring total income of Rs.58,250/ -. The assessment was completed under Section 143(3) of the Act on 28.02.2005 at a total income of Rs.8,96,313/ - besides agriculture income of Rs.58,280/ -. It appears that thereafter, a survey under Section 133A of the Act was undertaken at the business premises of the assessee and on the basis of material found during the course of survey, a notice under Section 148 of the Act was issued and the assessment was completed under Section 143(3)/148 of the Act on 31.12.2007 on a total income of Rs.59,27,490/. The AO found that the assessee had not included purchase of medicine of Rs.1,35,441/ - in the purchases shown at Rs.10,35,869/ - during the year and, therefore, made an addition of Rs.1,35,441/ - as undisclosed purchases. The AO further found that the sale of medicines and fee charged by the assessee was in the ratio of 60:40 and, therefore, he enhanced the sales to Rs.26,14,251/ - and after giving adjustment for profit on sale of medicines, computed the fee at Rs.10,45,700/ - and made another addition of Rs.6,88,687/ - after deducting the declared profit of Rs.3,57,013/ -. The AO further foundthat the assessee had made payments in respect of factory and hospital expenses out of undisclosed income and made yet further addition of Rs.40,61,361/ - (Rs.24,19,029/ - in respect of factory and Rs.16,42,831/ - in the case of hospital) to the total income. While making certain other additions, the AO ultimately assessed the total income of the assessee at Rs.59,27,489/ - after making an addition of Rs.50,31,176/ - to the original assessment order.

(3.) IN the Revenue's appeal against the order passed by the CIT (A), the Tribunal found that the CIT(A) had rightly deleted the additions and did not find any reason to make interference. The Tribunal, inter alia, recorded its findings after, again, elaboratelydiscussing the findings recorded by the CIT(A) on all the three issues thus: - (i)Addition on account of unaccounted purchase of medicines: