TMI Blog2006 (11) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... ,400 from long-term capital gains. The AO made various additions like, on account of suppression of professional income amounting to Rs. 2,15,520, on account of inadequate household expenses amounting to Rs. 1,01,183 and on account of unexplained investment in the construction of the building amounting to Rs. 1,05,568. In first appeal, the learned CIT(A) gave part relief to the assessee and hence both the parties are aggrieved. 3. The assessee has taken additional legal grounds, which challenge the survey proceedings. These additional grounds being purely legal one for which no further investigation of facts is required or admitted in the list of grounds taken in cross-objection, the learned Departmental Representative could not successfu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e person who recorded the statements and the officer has not even cared to put his signature at the end of the statement, therefore, these statements lose authenticity to a greater extent and thus cannot be relied upon. Thus, while considering the additions on merits, in our considered opinion, these statements cannot be considered. Ground No. 3 of the additional ground is, therefore, allowed. 8. The survey party reached the premises of the assessee at 10 AM. and left at 1 PM. During the course of survey, it was found that seven persons were occupying the patients' beds and 25 patients were sitting in the OPD. The survey team also found difference of cash of Rs. 104. The assessee has taken plea from the very beginning that a copy of state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all these submissions of the assessee, the AO took the working days 353 in the year and estimated total receipts from outdoor patients at Rs. 3,70,650 taking the fees charged Rs. 30 per patient which resulted into an addition of Rs. 1,29,960 in outdoor patients account. Likewise, for indoor patients, the AO estimated average receipts per day at Rs. 490 and estimated annual income from indoor patients at Rs. 1,78,850 by taking all the days into account. This resulted into an addition of Rs. 91,560 in the indoor patients' receipts. 11. In first appeal, all the submissions of the assessee that he charged only a fees of Rs. 50 per indoor patient, there is no rule to take the signature of the patients in the register and that when survey team ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively and thus total withdrawals were shown at Rs. 48,817. The AO made an estimation of household expenses by coming to a conclusion that on the education of children, electricity, water and telephone charges at Rs. 14,400 must have been spent. He opined that the remaining amount was sufficient for day-to-day household expenses and thus estimated Rs. 12,500 as monthly expenditure to make an addition of Rs. 1,01,183 in this account. The learned CIT(A) reduced this addition to Rs. 23,813. 17. After considering the rival submissions, we construe that on the basis of living standard of the family of the assessee, the AO estimated Rs. 12,500 as household expenses of the assessee and the learned CIT(A) took this figure at Rs. 6,000 per month. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itect fees. 3. The Departmental Valuation Officer did not allow rebate of 2 per cent for architect fees. 4. Rebate of 10 per cent for self-supervision has not been allowed. 20. But, the AO did not accept the above explanations of the assessee and made the impugned addition of Rs. 1,05,568 under s. 69 of the Act. The learned CIT(A), however, after considering the case of CIT vs. Hotel Joshi (1999) 157 CTR (Ra}) 369 adopted local PWD rates against CPWD rates adopted by the Departmental Valuation Officer and reduced the cost of investment. The learned CIT(A) also allowed rebate of self-supervision @ 7.5 per cent and deleted the entire addition. 21. After hearing the rival submissions, in the light of the available material on record, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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