Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income Assessment year 1994-95 and 1995-96 - Assessee was a nursing home and had on its panel visiting doctors - A raid was conducted on nursing home and it was found that assessee had not accounted for fee collected by visiting doctors - Assessee explained that visiting doctors had collected their fee directly from patients and it was not charged to account of nursing home - It also filed a joint statement of all visiting specialists confirming that they had directly collected fee from patients - However, as all visiting specialists had not been examined by assessee, Assessing Officer treated amount of fee to that extent as income of assessee - Whether when assessee had given joint statement of all visiting specialists, wherein they had categorically said that they had collected their fee directly from patients and amount collected by them was not charged to account of assessee, said statement got prima facie credibility and merely because assessee had examined some of specialists was not a ground to reject statement of other specialists who were not examined - Held, yes - Whether, therefore, addition was rightly deleted by Tribunal - Held, yes M.V. Seshachala for the Appellant. Shivakumar for the Respondent. JUDGMENT K. Sreedhar Rao, J. - Both the appeals are heard together since they involve similar questions of law and facts between the same parties. 2. The respondent/assessee is a Nursing Home with facility for inpatient treatment. The assessee has on its panel as many as 36 visiting doctors who were specialists in various fields of medicine. The intelligence wing conducted a raid. In the computer data, it is found that the Nursing Home bills had components. The one pertains to collection of nursing home charges for medical attention and inpatient stay. The 2nd component shows the fee collected by the visiting specialists. The assessee had not accounted the fee collected by the specialists in its accounts. The assessee to the show-cause notice, explained that it is the practice of the Nursing Home that the visiting specialists collected their fee directly from the patients and it was not…

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