TaxTMI 
TaxTMI 
2018 (7) TMI 291
X X X X Extracts X X X X
X X X X Extracts X X X X
....see is a pediatrician by profession and also the Managing Director of M/s Sri Sai Dhanvantari Healthcare Pvt. Ltd. (SSDH) (RK Children Hospital & Perinatal Centre). Search and seizure operations were conducted in the group cases of Dr. Kandula Radha Krishna and M/s SSDH on 24. 12. 2010. During the course of search, incriminating material was found indicating suppression of receipts of Dr. Radhakrishna, Dr. K. Seshagiri and also the assessee. During the search, the assessee has admitted the additional income of Rs. 10 lakhs as per the sworn statement recorded on 22. 2. 2011 u/s 132(4) of the I. T. Act. The Assessing Officer (AO) issued the notice u/s 148 of I. T. Act on 31. 12. 2012 and the assessee had filed the reply requesting the AO to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 16,51,815/-. The AO has called for the explanation of the assessee as to why the said sum of Rs. 16,51,815/- should not be separately added to the income and the assessee replied that the entire sum of doctors fee amounting to Rs. 16,82,445/- was admitted as income and brought into the books of accounts hence no separate addition is required to be made. The assessee also submitted a note and produced the books of accounts before the AO. The AO was not convinced with the explanation of the assessee, since the assessee has not separately shown the additional income in the return of income. Thus, the AO made the addition of Rs. 16,51,815/- relating to undisclosed receipts of SSDH in his hands and computed the total income at Rs. 48,94,065/-. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... showing that the Doctors fees charged from the patients was not admitted in the books of hospital and such amount was taken by three directors of the Hospital who are also doctors in the ratio of 37:35:28 between Dr. K. Radha Krishna, Dr. K. Seshagiri and Dr. C. H. S. Srinivas respectively. During the search proceedings, the assessee admitted additional income of Rs. 10 lakhs, however, the actual share of assessee from SSDH was Rs. 16,82,445/- for the period from April to December 2010. The same was not recorded in the regular books of accounts as the assessee was not maintaining the books of accounts at the time of search. Later on the assessee reconstructed the books of accounts and accounted the said receipts in the books accounts as we....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6. We have heard both the parties and perused the material placed on record. A search u/s 132 was carried out in the case of SSDH. on 24. 12. 2010. During the course of search, the incriminating material was found indicating the suppression of receipts which were appropriated by the Directors Dr. K. Radhakrishna, Dr. K. Seshagiri and Dr. C. H. S. Srinivas. The assessee admitted undisclosed income of Rs. 10 lakhs in his hands u/s 132(4) of I. T. Act on account of undisclosed receipts relating to Doctors fees, which was collected from the patients who are admitted in the RK Childrens Hospital and Perinatal Centre (SSDH). The said sum was not accounted in the books of hospital, but appropriated by the assessee and two other Doctors, as admitte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....come. Though the assessee has admitted additional income of Rs. 10 lakhs, the share of the assessee towards the Doctors fee collected from the patients worked out to Rs. 16,51,815/- which was not disputed by the AO. The AO also has not disputed the fact that the assessee had not maintained the books of accounts till the date of search, but subsequently reconstructed the books of accounts. As evident from the ledger account, profit and loss account and the note submitted by the assessee that the assessee had admitted the sum of Rs. 16,82,445/- towards his share from the SSDH upto December 2010 which was more than the admission made by the assessee u/s 132(4) and also the share of his receipts worked out by the AO. The AO has not given a find....