2011 (1) TMI 867

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....ees for the assessment year 2000-01.   2. We have heard Standing Counsel appearing for the appellants and Sri Anil D. Nair, Advocate appearing for the respondent/assessee.   3. All the assessees are specialist Doctors who are employed by a private hospital at Calicut during the relevant accounting year. In the course of survey conducted in the hospital on 25-2-2000, the investigation branch of the Income-tax Department seized accounts and have recorded the statement of three employees and the Managing Director of the hospital. It is seen from the records and statements of the Managing Director and the employees engaged in handling of the cash that cash was collected and paid to the Doctors for the service rendered by them wi....

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....sessing Officer in Mumbai has accepted the statement furnished by the authorised representative of the hospital without verifying its correctness with reference to accounts or seized documents. What is stated by the Assessing Officer at Mumbai is that Rs. 1,97,16,764 which includes the additions made in the case of the respondents/assessees was accounted as operation charges in the seized note book. Out of the amount of Rs. 1,97,16,764, the authorised representative accounted Rs. 1,16,88,777 towards the surgical consumables which have been accounted in the name of Doctors. Strangely, out of the three Doctors involved in these cases, two are not even Surgeons. However, the case of surgical consumables accounted in the name of Dr. P.K. Asokan....