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2017 (12) TMI 680

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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ed. Consequently the estimation and enhancement of income that followed also cannot be sustained - Decided in favour of assessee. - Income Tax Appeal No. 5 of 2008 - Dated:- 11-12-2017 - Hon'ble Bharati Sapru And Hon'ble Saumitra Dayal Singh, JJ. For the Appellant : S. K. Garg, Ashish Bansal For the Respondent : C.S.C., Ashish Agrawal ORDER This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') has been filed against the order dated 10. .....

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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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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 cas .....

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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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t the assessee had produced his cash book, ledger, indoor patient register from the period 19.12.2002 to 31.3.2003, OPD register and bank pass book. It has therefore submitted that the books of account of the assessee had been rejected arbitrarily in absence of satisfaction of the statutory condition. Alternatively, learned counsel for the assessee has submitted that the enhancement made on estimate is wholly arbitrary. Opposing the above, learned counsel for the revenue submits that burden to e .....

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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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ent assessment year and assessment has been disclosed as below:- Asst. Year Income from profession as per return Remarks, if any 2002-03 1,95,150 Assessed u/s 143(1) 2003-04 2,34,540 Year under appeal u/s 260A before this Hon'ble High Court 2004-05 2,24,820 Assessed u/s 143(1) 2005-06 1,89,000 Assessed u/s 143(1) 2006-07 2,51,346 Assessed u/s 143(1) 2007-08 2,07,702 Assessed u/s 143(1) 2008-09 2,64,311 Assessed u/s 143(3) by ITO, W-II, Azamgarh dated 31.12.2009. A bare perusal of the aforesa .....

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