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Dr. Prabhu Dayal Yadav Versus Commissioner Income Tax

2017 (12) TMI 680 - ALLAHABAD HIGH COURT

Rejection of books of account - estimation of income from the profession of surgery and consultancy - 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? - Held that:- No evidence exists to doubt the correctness or completeness of the books of account of the assessee. In the instant case, books of account of the assessee were rejected unfounded suspicion. Absence of vouchers, in the peculiar facts o .....

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resent year is similar or comparable to the income which the department assessed at the hands of the assessee five years later. This fact itself indicates that the rejection of books of account and the consequential best judgment assessment made by the assessing officer in the present year is wholly excessive, arbitrary and unfounded. - Thus answer question no.1 in favour of the assessee and against the revenue. We have found that the rejection of books of account of the assessee was unfound .....

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08.2007 passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad in the assessee's appeal for the Assessment Year 2003-04. The appeal was admitted on 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 an .....

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rs. In his return for the A.Y. 2003-04, the assessee filed his return disclosing total income at ₹ 2,24,600/-. Subsequently, the said assessment was taken up for scrutiny wherein the assessing officer noted that upon test check being made there some discrepancy were noted between the entries recorded in the books of account of the assessee and registers and documents seized during the survey. However, the nature and extent of such discrepancy was disclosed in the assessment order. The asse .....

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dated 23.08.2006. While the CIT (Appeals) made certain deletions, in so far as rejection of the books of account is concerned, the same was upheld. Being aggrieved, the assessee as also the revenue appealed before Income Tax Appellate Tribunal, Allahabad. The Tribunal has vide it's order dated 10.08.2007 rejected both the appeals and confirmed the order passed by the CIT (Appeals). We have heard Sri Ashish Bansal, learned counsel for the assessee and Sri Ashish Agrawal, learned counsel for .....

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e, admittedly at the time of survey difference between the OPD register as also Indoor Patient register were found maintained wherein details such as the names of the patients, payment received were found recorded. Merely because there were no vouchers in support of such entries or because the address of the patients from whom the assessee received payments have not been recorded, could not have been a ground to reject the books of account of the assessee as either incomplete or incorrect in abs .....

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stically. He therefore submits, the revenue did not find any evidence that may lead to the conclusion that the assessee's books of account were such as were not reflecting full and true income of the assessee. In absence of any evidence either documentary or oral led by the revenue such as may suggest that the receipts recorded by the assessee in the OPD register and indoor patient register were under disclosed, there did not arise any presumption that those books of account of the assessee .....

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o 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 how the assessee had under disclosed his income. Further, from the assessment order it has been shown tha .....

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stablish correctness and completeness of the books of account was of the assessee. In so far as the assessee did not produce the vouchers and did not disclose the address of the patient and no person was produced before the assessing officer for examination, the assessee never discharged the burden. He therefore, submits that the books of account of the assessee were rightly rejected and the estimation made being a matter of guess work, the same does not give rise to any substantial question of .....

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corded 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 me .....

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not give rise to any presumption that there was any non-disclosure of income inasmuch as there is no evidence to doubt the correctness of the entries made in the OPD register as also Indoor Patient register. Also, by an earlier order in this appeal a supplementary affidavit had been called for to bring on record the status of the past and later assessment order in the case of the assessee. In pursuance thereto the assessee has filed a supplementary affidavit wherein the income earned from differ .....

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