2006 (8) TMI 268

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....his appeal arises out of a penalty order passed under s. 271B of the Act on 14th Sept., 2004. 2. The facts of this issue are that the assessee is medical practitioner and is also a proprietor of Surana Clinic and Diagnostic Centre. He showed receipts of Rs. 70,492 from patients treated by him by way of fees; Rs. 4,88,221 from pathological laboratory; and Rs. 8,60,832 from sales of medicines, to....

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....al submissions and perused the evidence available on record. 4. It has been submitted before us that the assessee has been maintaining separate records for professional receipts, pathological receipts and sale of medicines. According to learned Authorised Representative, if these receipts are taken under profession and from the business separately, the provisions of s. 44AB are not attracted. I....

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...., in the light of the available facts. It is true that the assessee is a medical practitioner. As per written submission filed on behalf of the assessee, he is an ayurvedic doctor and has no knowledge of allopathy, leave aside pathological analysis, and he has three types of receipts-(1) from treatment of patient, (2) from pathological laboratory and (3) from the sales of medicines. Since, we are ....

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.... that a wrong legal advice given by the counsel is the reason for the impugned default and the assessee was prevented by this advice, which constituted a reasonable cause in the eyes of the law and in the favour of the assessee. 7. We are convinced that the assessee was acting as per the advice of the advocate in good faith and the issue. involved in this case with regard to the nature of recei....