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TMI Blog2016 (8) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... ls are common, arising out of identical set of facts, therefore, same were heard together and are being disposed off by way of this consolidated order. 2. We will first take-up ITA No.4380/mum/2014, wherein the assessee has raised following grounds:- "1 The Learned CIT(A) erred in confirming the action of the AO in assessing an income of Rs. 20,97,020/- as against the income declared at Rs. 2,52,618/-. 2. The Learned CIT(A) erred in confirming the order passed by the Assessing Officer in treating the business receipts as "Income from Other Sources" and disallowing the total expenses claimed. 3. The Learned AO erred in disallowing the expenses claimed in the business account against the business income. 4. The Learned CIT(A) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own against income from medical profession. However, the AO rejected the assessee's contention on the ground that assessee could not provide any details of the earning of medical income and the expenses could not be established against the business income. Accordingly, he treated the medical income declared by the assessee at Rs. 5,56,100/- as "income from other sources" and also disallowed the expenses except the bank interest of Rs. 13,55,724/-. 5. Before the ld. CIT(A), the assessee's submissions was that assessee was a Doctor by profession and had earned income from medical practice at Rs. 5,56,100/-. The assessee is also a partner in a firm, which is engaged in the field of construction from which he had received remuneration, which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure as a nexus in earning that income. Therefore, in so far as the assessee was able to prove his claim, the Assessing Officer has allowed the deduction. However, as regards all other expenses claimed by the appellant, in the absence of any material produced either before the AO or before me, I do not find any reason to vitiate the order of the AO. Secondly, appellant was shown income of meager amount of Rs. 5,00,000/- against which he has claimed huge expenses like conveyance, depreciation etc. which has in turn an effect to reduce the taxable remuneration chargeable to tax. Thus, what is shown as income from profession is nothing but an alibi taken to reduce the burden of tax. Therefore, in the absence of any material produced to jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medical profession and details of expenses were submitted before the ld. CIT(A) in response to query raised by him. This is evident from the order sheet entries of the "Appellate proceedings" which has been obtained under the RTI Act. To demonstrate, she filed copy of order under section 7(1) of the RTI Act, 2005 along with the photo-copy of order sheet entries. From the order sheet entry itself she pointed out that the Ld. CIT(A) had asked to furnish the details of business income and expenses and in response to the same the entire details have been furnished which is evident from the documents appearing in the paper book filed before us. Thus, this allegation of the Ld. CIT(A) is factually incorrect in the wake of the evidences and docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rought or enquiry whatsoever has been done by AO. The AO has treated this income as 'income from other sources', which has no basis in the wake of these evidences. Accordingly, we hold that the income of Rs. 5,56,100/- shown by the assessee is nothing but medical income shown by the assessee which is chargeable under the head "income from business and profession" under section 28. Further, from the nature of expenses debited it is quite evident that these expenditures are purely for the purpose of earning of business incomes shown, like in the nature of audit fees, bank charges, interest on loan, insurances, payments made for professional fees, telephone expenses, car repairs etc. All these expenses have been incurred by way of account paye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled the copy of order sheet-entry of the First Appellate Authority to controvert the finding of the ld. CIT(A). In this case also all the details of earning of business income as well as details and nature of expense incurred were filed along with the Ledger account before the ld.CIT(A). The break-up of expenditure as given before us are as under:- S. No. Details of Expenses Bank Cash Journal Entries Total 1 Audit Fees 11,030 - - 11,030 2 Bank Charges 14,525 - - 14,525 3 Bank interest 12,59,405 - - 12,59,405 4 Conveyance 2,44,427 - - 2,44,427 5 Depreciation - - 1,76,999 1,76,999 6 Insurance Car 24,517 - - 24,517 7 Interest on Loan 15,14,310 - 2,112 15,14,310 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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