TaxTMI 
TaxTMI 
2013 (11) TMI 210
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....orities found a crystal college book which contained the details of payments made to doctors. According to the ld.representative, the three assessees before this Tribunal are salaried employees in the hospital. Apart from the assessee doctors there were also consulting doctors, who used to visit the hospital whenever necessary. The payments made to visiting consultants are entered in the crystal college book. According to the ld.representative, the assessees are not entitled for any payment over and above the fixed monthly salaries paid to them. Whatever reference was made in the crystal college book, which was found during the course of survey operations about the assessees is with regards to patients who were under their treatment. The amounts mentioned in the crystal college book are the amounts collected by Fathima Hospital Pvt Ltd for treatments and therefore, the assessees have nothing to do with the amounts mentioned in the crystal college book. The ld.representative further submitted that in fact, Fathima Hospital Pvt Ltd, after the survey operations offered the receipt as income and the same was also assessed in the case of Fathima Hospital Pvt Ltd by the Income-tax Office....
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....ss. Sindhu P. Miss Sindhu P explained that crystal college book contained the names of the patients, hospital number, name of the doctor and the money given to respective doctors. It was also clarified that the hospital has no connection with the money received from patients and the entry in the crystal college book. These amounts, which were found to have been entered in the crystal college book, were directly paid to the doctors. Referring to the statement recorded from Shri Abdulla Mohammed, the Managing Director of Fathima Hospital Pvt Ltd, more particularly question No.6, the ld.DR submitted that one of the patients, who was admitted in the urology department of the hospital paid fees for the operation. The money was paid to three doctors, viz. Dr Roy Chaly, Dr. Abdul Azeez and Dr. Dinesh towards their operation charges. 6. According to the ld.DR, Ms. Sindhu P clearly stated that the payment collected from the patients and that are paid to the visiting doctors were entered in the crystal college book. There is a clear reference and entry in the crystal college book with regard to the payments made Dr. Anitha Asokan, Dr P.K. Asokan and Dr. Nasser Yousuf. Therefore, it is obv....
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....ribunal found that the entire amount was already assessed in the hands of the hospital and accordingly the Tribunal deleted the addition made in the hands of the assessees. However, the High Court observed as follows: ".......... The Tribunal's assumption that the income assessed in the hands of the assessees is treated as income of the hospital, in our view, is incorrect because the same is not disclosed in the assessment order. In fact, it is evident from the assessment order of the hospital itself that their accounts were unreliable. In fact, the return filed declaring loss of Rs.81,725/- was later revised by filing another return on 27.10.2002 declaring the income as 'nil'. Even though, revised return was rejected by the assessing officer at Mumbai, the assessing officer has not cared to verify the records and statements recorded in the course of survey for the purpose of completion of assessment of the hospital. Strangely, the assessing officer in Mumbai has accepted the statement furnished by the authorized representative of the hospital without verifying its correctness with reference to accounts or seized documents. What is stated by the assessing officer at....
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....t the amount was already assessed in the hands of Fathima Hospital Pvt Ltd at Mumbai has no merit at all. This Tribunal has to independently examine the seized material and other documents on record. 10. Now coming to the crystal college book, the copy of which is filed by the assessees, the same contains the name of the patients, hospital number, amount collected from them and the names of the doctors. While examining one Miss Sindhu P, who explained that this note book, viz. crystal college book, contains the money received from the patients as per the directions of various doctors. She also explained that this note book contains the name of the patients, hospital numbers, name of the doctors and the money given to the doctors. She further explained that the hospital has no connection with this money. She further claimed that this money was directly entrusted by her to the concerned doctors. In fact, with reference to question No.1, she replied as follows: "A. This note-book contains accounts kept by me regarding the lumpsum cash collected from patients as per directions of various doctors. It contains names of the patients, hospital number, names of the doctor....
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....ore, the same is to be treated as their income. 13. In view of the above discussion, this Tribunal is of the considered opinion that the assessing officer has rightly made the addition with regard to the amount received as per the entries found in crystal college book which was found during the course of survey operation. Accordingly, the addition made by the assessing officer is confirmed. 14. Now we move to decide the appeal in respect of penalty levied by the assessing officer in the case of Dr. P.K. Asokan in ITA No.965/Coch/2007. 15. Having heard the ld.DR and the ld.representative for the assessee, this Tribunal finds that the CIT(A) deleted the penalty on the ground that the addition made by the assessing officer was deleted by this Tribunal by an order dated 28-09-2006. Admittedly, the order of this Tribunal dated 28-09-2006 was set aside by the High Court and the matter was remanded back to the Tribunal. In the remand proceedings, this Tribunal has confirmed the addition made by the assessing officer in the earlier part of this order. Therefore, now we have to examine whether there was any reasonable cause on the part of the assessee for not disclosing the amount ....