TaxTMI 
TaxTMI 
2017 (12) TMI 680
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.... the following questions of law:- "(i) Whether on a true and correct interpretation of the provisions of section 145, the ITAT was legally correct in upholding the rejection of books of account and estimate of income from the profession of surgery and consultancy as was carried on by the appellant? (iv) Whether there exist any basis for estimating the income from the medical profession as carried on by the assessee @ 50% of the receipts, as enhanced?" Admittedly, the assessee is a practicing doctor (surgeon) who had been running a nursing home. On 18.12.2002 a survey under Section 133A of the Act was conducted at the nursing home of the assessee. During that survey, various account books and registers were examined and ....
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....i Ashish Bansal, learned counsel for the assessee and Sri Ashish Agrawal, learned counsel for the revenue. Learned counsel for the assessee submits, in order to sustain the rejection of the books of account, the revenue must establish existence of the conditions prescribed under Section 145(3) of the Act. In so far as there is no dispute as to the method of accounting or computation in accordance with standards notified, in the instant case, the books of account of the assessee could have been rejected only if the same had been incomplete or incorrect. He then submits, in the instant case, admittedly at the time of survey difference between the OPD register as also Indoor Patient register were found maintained wherein details such as the....
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....that test check was made with the OPD/Indoor Patient register from the books of account of the assessee. Thereafter, it has been further recorded that in the OPD register and Indoor Patient register the assessee had made entries of admission of patients, fee charged from them operation fees bed fee etc. These entries were found recorded from 12.09.2002 to 31.03.2003. Thereafter, a mere observation had been made in the assessment order that the books of account produced in which the entries were made did not tally with the register that was seized during the course of survey conducted under Section 133A of the Act without giving any further detail of the extent to which entries allegedly did not match and without drawing any conclusion as to....
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.... discrepancy, the allegation made in the assessment order is wholly vague inasmuch as the assessing officer has not recorded the nature and extent of discrepancy, if any noticed between entries found recorded in various books of account produced by the assessee during the course of the survey and assessment proceedings. Besides the above the assessee had also produced his cash book, ledger as also bank pass book. No specific discrepancy or deficiency has been pointed out in the assessment order on account of other books of account. Thus, it appears that the books of account of the assessee have been rejected merely because the assessee did not produce the vouchers. Though, such vouchers may have been maintained, however, in the entirety ....