9911796707
TMI Blog2006 (5) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... a 'daily case register' in Form 3C is a statutory requirement under s. 44AA of the Act, r/w r. 6F(3) of the IT Rules. The AO was of the view that the gross receipt of the assessee cannot be verified in the absence of daily case register in Form 3C. The AO has made the following observations in the order of assessment: "I am, therefore, not satisfied with the correctness and completeness of the accounts of the assessee. I, therefore, make an addition of Rs. 13,30,000 being approximately five per cent of the declared gross receipts of the assessee, thereby estimating the gross receipts at Rs. 2,79,34,223." 3. Against the aforesaid addition the assessee preferred appeal before the CIT(A). The principal argument of the assessee before the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aced on the guidance note issued for tax audit under s. 44AB of the Act by the Institute of Chartered Accountants of India wherein they have classified nursing home as a business activity and not as a professional activity. Apart from the above, the assessee also challenged the rejection of books of account by the AO without pointing out any error, discrepancy or irregularities in the books of account maintained by the AO. It was also pointed out that the details of names of the patients, date of treatment, nature of professional services, fees received and date of receipt have been duly maintained by the assessee and no fault whatsoever has been found regarding the same. 5. The CIT(A) deleted the addition made by the AO for the reasons g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lified individual running a nursing home rather it is a company floated by qualified doctors for carrying on the profession of medicine through assessee-company. It cannot be termed as assessee-company carrying on business rather it is very much engaged in the profession of medicine." 7. The submission of the learned Departmental Representative was that the intention of the legislature behind prescribing certain details to be maintained by persons practising medicine was that it will enable the AO to ascertain the gross receipts from profession. According to the learned Departmental Representative the intention of the legislature is, therefore, to cover even private limited companies that are engaged in the profession of medicine. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inition of 'person' under s. 2(31) of the Act also includes a private limited company and, therefore, the provisions of r. 6(F) would apply to the case of an assessee, which is a private limited company. He also submitted that estimation of income is a method of assessment accepted in tax laws and the AO is the best Judge in the matter of estimation of income. 10. We have considered the rival submissions. Rule 6(F) r/w s. 44AA(1) of the Act casts an obligation on a person carrying a medical profession to keep and maintain such books of account and other documents which will enable the AO to compute his total income. Sub-s. (3) of s. 44AA empowers the Board to prescribe the list of documents to be maintained as per the rules framed in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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