INCOME TAX OFFICER Vs. PRIVATE KLINIK DR SACHDEV
INCOME TAX APPELLATE TRIBUNAL
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O.P. Garg, Judicial Member -
(1.) THIS appeal has been preferred by the revenue against order dated 5-2-1981 of the AAC.
(2.) 1975-76 is the assessment year concerned. Financial year is the previous year. The assessee is a registered firm consisting of two partners, both of them being medicos. Assessment was completed by the ITO as per order dated 30-3-1978, determining total income at Rs. 43,836.
It is the first year of assessment. The assessee-firm had made up its accounts in such a way that whereas, in respect of receipts cash method was followed, in respect of outgoings or expenditure mercantile method was followed. The ITO concluded that by the said method, correct income of the assessee could not be deduced. The ITO proceeded to take into account cash receipts amounting to Rs. 1,30,409 and as regards expenditure, the ITO adopted the figure of Rs. 1,36,409 as expenditure, in place of the figure of Rs. 1,89,528 as worked out by the assessee according to mercantile method. Thus, in the assessment, a figure of Rs. 53,119 came to be added by way of adjustment.
(3.) THE assessee carried the matter in appeal to the AAC. THE AAC relied on the Tribunal's order in the assessee's case relating to the assessment year 1976-77 and reduced the figure of assessed total income by the said figure of Rs. 53,119. Thus, the assessment of the firm would come to be made at a negative figure of Rs. 9,283, as a result of relief granted by the AAC, in respect of the said adjustment. With other reliefs granted by the AAC on appeal, totalling Rs. 9,243, we are not concerned in the present appeal.;
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