TaxTMI 
TaxTMI 
1997 (2) TMI 166
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....riving income from medical profession by practicing at Nursing Home known as Aggarwal Nursing Home owned by her husband Dr. R.S. Aggarwal at A-22, Vishal Enclave,New Delhi. She is a child specialist and wife of Dr. R.S. Aggarwal. The assessee had been practicing since 1974 and also being assessed by the IT Department on the income from this profession. During the relevant year under consideration, a survey was conducted at the Nursing Home on24th Oct., 1988, where statement of the receptionist Smt. Balwant Kaur and assessee's husband Dr. R.S. Aggarwal were recorded. According to the AO the daybook maintained by the assessee did not furnish information regarding nature of professional services rendered by the assessee in respect of OPD patients. Therefore, the documents and the books of accounts found at the Nursing Home were impounded under s. 133A of the Act for examination. On further examination, the AO found infirmity in the maintenance of the books of accounts as under: "(i) The AO in the assessment order has not mentioned in the assessment of the appellant for the asst. yr. 1988-89 (sic) it has been recorded that the daily register maintained by the assessee do not provide i....
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.... AO and no defects whatsoever was noticed in the same. In support of this, the learned assessee's counsel quoted from page 3 of the assessment order where the AO has given comparative figure as per the reconstructed books of accounts on 30th Sept., 1988 as under: . Balance as per books impounded on 30th Sept., 1988, Balance as per reconstructed books on 30th Sept., 1988 OPD Rs 36,663 Rs 36,663 DPT 660 660 Misc. Income -- 17,865 Indoor -- 43,685 Injection -- 4,821 6. Regarding OPD register, it was pointed out that in the OPD cases the assessee prepared and maintained OPD register in which receipts were only from OPD cards. It was explained that entries in the said register w.e.f.1st Oct., 1988could not be made because of illness and bad health of the accountant. However, the AO himself noted at page 3 of the said order that the balance of OPD shown in the impounded books as on 30th Sept., 1988, were the same as the balance as per the re-constructed books of accounts. 7. Regarding discrepancy on account of receipts from patients in-patients register, it was pointed out that only 11 patients treated free of cost by the assessee and 25 by her husband Dr. R.S. Aggarw....
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....uded in the income from path. lab. by Dr. R.S. Aggarwal Add : Income from path. lab. referred to by the appellant which are included in the income from path. lab. by Dr. R.S. Aggarwal. 2,920 . 16,685 9. Thus it was pointed out that the AO has accepted that Rs. 6,486 on account of income from OPD has been recorded in the books and therefore the balance of Rs. 9,199 has been mentioned by him as not recorded in the month of September, 1988 but he omitted to see that in the reconstructed books accounts, the assessee has disclosed these figures which are appearing in figure of misc. income/indoor income and injection income as well as DPT income. The assessee has pointed out the break-up of various heads as income from the month of April, 1988 to March, 1989 given at page 22 of the paper book. It was pointed out that the income which has been mentioned by the AO as missing from September, 1988 has been included in the total professional receipts and therefore there was no justification to estimate the addition of Rs. 1,19,148 on account of suppression of income in the returned income. It was further clarified that the assessee had not disclosed the income from path. lab. Path lab. i....
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....s owned by her husband Dr. R.S. Aggarwal and he has been showing income from Path. lab. which is clear from the statement of computation of income filed by Dr. R.S. Aggarwal alongwith his return of income for asst. yr. 1989- 90. A perusal of the income and expenditure account attached with the computation of income shows that Dr. R.S. Aggarwal had shown income from Lab. Rs. 24,680 paid the tax on that income. Therefore, the income derived by her husband in his individual capacity has been wrongly clubbed with the income of the assessee. Regarding discrepancy in the treatment register in respect of free patients, it is pointed out that the assessee had given list of patients who have been treated free of charge. These patients had given their affidavit which is at page 111 to 120. It is also pointed out that as per notification of Dy. Director, Technical, the assessee is under obligation to give treatment free of charge to the patients who have been treated for operation in the Nursing Home. The instructions of the Dy. Director (Health) is given at page 123 to 125 of the paper book. In view of these evidences on record, the discrepancy found by the CIT(A) is fully explained. As rega....
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....ted out by the AO e.g. the income from Path. Lab. 12. We have given our careful consideration to the rival submissions and have gone through the relevant material available on record. The learned assessee's counsel argued that there was no discrepancy in the patients treatment register vis-a-vis treatment of some patients free of cost. In this connection he has invited our attention to the paper book pages 111 to 190 where these patients have given affidavit in support of the case that they have been treated free of cost. Our attention was also invited to pages 123 and 124 to highlight the fact the Nursing Home is under an obligation to treat the patients free of cost as per direction of the Dy. Director, Family Planning. After going through the affidavit of the patients and the direction of the Dy. Director, Family Planning, we are of the opinion that the assessee had been able to successfully explain the discrepancy pointed out by the CIT(A) with regard to patients treated free of cost. The Revenue has not brought anything on record to show that any fee actually have been paid by these patients or they have not been treated free of cost. In view of this there is no justification....