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2022 (5) TMI 1174 - AT - Income TaxDisallowance of deduction u/s 80IB - As per AO MMHRC paid amount to Monica Group in the guise of purchases which was withdrawn and paid back to the assessee. The said cash, in turn, is alleged to have been introduced in MH to inflate hospital receipts with a view to claim higher deduction u/s 80IB(11C) - HELD THAT:- Allegation would have no legs to stand in the light of the fact that Shri T.John Rajasekhar admitted additional income of over Rs.12.35 Crores before Hon’ble Income Tax Settlement Commission (ITSC) to account for various discrepancies found in the books and bank accounts. Therefore, the conclusion that the cash was returned back to the assessee could not be upheld. As rightly noted by Ld. CIT(A), except for difference in receipts in two accounting software, there was no other evidence / information to show that the assessee had been receiving income from other sources or had been inflating hospital receipts in order to claim higher deduction u/s 80IB. The difference in receipts has already been offered to tax by the assessee and the same has been accepted by Ld. AO as well. To support his case, Ld. AO has drawn comparison between the two entities. However, as rightly noted by Ld. CIT(A), the profitability of the two entities could not be compared since MMHRC was a charitable entity having objects of Charity whereas MH was run on commercial basis. Pertinently, MH was a super specialty hospital having no competition. Therefore, to say that both the entities should have same profitability would not be a correct proposition - Thus the impugned order in granting full deduction u/s 80IB could not be faulted with. Concurring with the stand of Ld. CIT(A), we dismiss revenue’s appeals for both the years. Addition based on difference of Rs.1242.12 Lacs during the entire period from 01.04.2014 to 26.11.2014 (i.e., date of search) - The assessee reconciled whole of the receipts between two software and finally arrived at difference of Rs.1262.28 Lacs and offered the same to tax in the return of income. Therefore, the separate addition of difference of a particular day would not be justified since the same has to be considered to be part and parcel of total difference as offered by the assessee. Therefore, by deleting the impugned addition, we allow the cross-objection of the assessee. The separate addition, as sustained by Ld. CIT(A) in AY 2015-16 stand deleted.
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