2011 (7) TMI 231

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....ound to interfere with the orders of the appellate Tribunal allowing respondent's claim. So much so, we condone the delay of 23 days in filing the appeals and proceed to consider the case on merits. 2. The respondent/assessee is a major hospital located in the middle of the city. During search conducted by the department, they noticed unaccounted collection of fees in the name of doctors and distribution of the same to various doctors serving the hospital whether as regular employees or as consultants. In the course of enquiry, the respondent/assessee accepted the collections but contended before the department that they have distributed the entire amounts to the doctors in whose name the collections were made and no part of it is retained....

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....nything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income." 4. After hearing the standing counsel and after going through the records, what we find is that this is not a case of failure of the respondent/assessee to explain the expenditure. In fact the respondent on being confronted with the accounts seized from them conceded that the entire amounts were collected by them for payment to doctors serving the hospital. Obviously, the payment made to a single doctor in a day does not exceed Rs. 20,000 because in such cases the department could have made disallowance of expenditure under section 40A(3) of the IT....