Neelam Gupta Vs DCIT (ITAT Chandigarh)
Software Difference Is Not Entire Undisclosed Income & Diary Scribbles Cannot Become Crores: ITAT Restricts Hospital Receipts Addition to 5%
The Chandigarh Bench of the ITAT has granted substantial relief to a doctor running a multispeciality hospital by holding that a difference between receipts appearing in hospital-management software and regular books cannot automatically be treated as undisclosed income in its entirety. Considering duplication of entries, collection of old balances, patient advances & corresponding unrecorded expenses, the Tribunal restricted the addition to 5% of the differential receipts as business/professional income.
The ITAT also deleted additions based on recurring-deposit assumptions and uncorroborated diary notings, including a remarkable addition of ₹1.40 crore allegedly representing donation paid for the assessee’s son’s medical admission.
Hospital Software Showed Higher Receipts
The assessee, an MD in Radiology, had served with the Himachal Pradesh Government from 1993 to 2005 and thereafter established M/s Akash Multispeciality Hospital in 2008. She disclosed pension, professional income from the hospital & interest income.
During a survey u/s 133A on 22-02-2019, the Department examined data from the hospital’s Hospital Management Software (“HMS”). The receipts reflected in HMS were higher than those recorded in the audited accounts maintained through Tally. The AO consequently alleged suppression of receipts and made additions of:
