Dr. Bharat S.Mody, Baroda V. The ACIT.,Cent.Circle-2, Baroda

ITA 2271/AHD/2009

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85741 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 23-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOU NTANT MEMBER DR. BHARAT S. MODY, 101, AKASHGANGA COMPLEX, NEAR VANIJYA BHAVAN, RACE COURSE CIRCLE, BARODA PAN: ACGPM 59 M (APPELLANT) VS ACIT, CENTRAL CIRCLE-2 BARODA (RESPONDENT) ASSESSEE BY: SHRI MUKUND BAKSHI, A.R . REVENUE BY: SHRI SUBHASH BAINS, CIT-D.R . DATE OF HEARING : 10-02-2015 DATE OF PRONOUNCEMENT : 26-02- 2015 / ORDER PER : ANIL CHATURVEDI, ACCOUNTANT MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-IV, AHMEDABAD DATED 21-01-2009 FOR A.Y. 2005-06. 2. FACTS AS CULLED OUT FROM THE MATERIAL ON RECORD ARE AS UNDER: ITA NO. 2271/AHD/2009 ASSESSMENT YEAR:2005-06 I.T.A NO. 2271/AHD/2009 A.Y. 2005-06 PAGE NO DR. BHARAT S. MODY VS. ACIT 2 3. ASSESSEE IS A PRACTICING ORTHOPEDIC SURGEON RUNN ING CENTRE FOR KNEE SURGERY. IN THIS CASE A CONSOLIDATED ORDER DATED 22 .2.2013 FOR AY 2000-01 TO 2005-06 ORDER WAS PASSED BY THE TRIBUNAL. SUBSEQ UENTLY, MISCELLANEOUS APPLICATION (M.A.) WAS FILED BY THE A SSESSEE AND CONSEQUENT TO THE M.A ORDER DATED 22.8.2014 ASSESSE E'S APPEAL IN ITA NO 2271/A/2009 FOR AY 2005-06 WAS RECALLED. 4. BEFORE US, LD AR SUBMITTED THAT ASSESSEE IS A OR THOPEDIC SURGEON AND CONSEQUENT TO THE SEARCH ACTION, THE INCOME FRO M OPERATIONS FROM NON PSU PATIENTS WAS ESTIMATED BY THE AO FOR A.Y. 2000- 01 TO 2005-06. FOR THE YEAR UNDER CONSIDERATION, THE ESTIMATE OF FEES PER OPERATION WAS ESTIMATED AT RS.1 LAC BY THE AO WHICH WAS REDUCED T O RS. 82,000/- BY CIT(A) AS AGAINST WHICH THE AMOUNT ESTIMATED BY THE HONBLE TRIBUNAL IN ORDER DATED 22/02/2013 WAS RS. 90,000/- HE THEREFOR E SUBMITTED THAT ESTIMATE OF FEES PER OPERATION MADE BY THE HONBLE TRIBUNAL WAS ON A HIGHER SIDE AND FURTHER DURING THE COURSE OF SEARCH , UNDISCLOSED INVESTMENTS/ASSETS OF ONLY RS 5.56 LACS WAS FOUND. HE THEREFORE SUBMITTED THAT THE ADDITION BE DELETED AND AS AN ALTERNATE CO NTENTION HE SUBMITTED THAT CONSIDERING ALL THE FACTS, ESTIMATE PER OPERAT ION FROM NON PSU PATIENTS MAY BE ESTIMATED AT RS 85,000/-. LD DR DID NOT SERIOUSLY OBJECT TO THE SUBMISSIONS OF THE LD AR. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN THE PRESENT CASE IT IS SEEN THAT THE CO- ORDINATE BENCH OF TRIBUNAL HAD ESTIMATED THE FEES PER OPERATION FROM NON PSU P ATIENTS FOR VARIOUS YEARS AND FOR AY 2000-01 THE FEES WAS ESTIMATED TO BE RS 73,000/- PER OPERATION. THE TABLE IN THE CONSOLIDATED ORDER PASS ED BY TRIBUNAL ON 22/02/2013 REVEALS THAT THE INCREASE IN FEES ESTIMA TED FOR A YEAR IN COMPARISON TO THE IMMEDIATELY PRECEDING YEAR RANGE S FROM 0.6% IN AY I.T.A NO. 2271/AHD/2009 A.Y. 2005-06 PAGE NO DR. BHARAT S. MODY VS. ACIT 3 2001-02 TO AROUND 4% IN AY 2004-05 BUT HOWEVER FOR AY 2006-07 THE INCREASE IN FEES OF 11.80% HAS BEEN CONSIDERED. CONSIDERING THE TOTALITY OF FACTS IN THE PRESENT CASE AND IN VIEW OF THE INCREA SE IN FEES PER OPERATION CONSIDERED FOR VARIOUS YEARS, WE ARE OF THE VIEW TH AT FEES PER OPERATION OF RS 90,000/- FOR AY 20005-06 IS QUITE HIGH (BEING11. 80%) AND THAT THE ENDS OF JUSTICE SHALL BE MET IF THE FEES PER OPERATION F ROM NON PSU PATIENTS FOR A.Y. 2005-06 IS ESTIMATED AT RS 85,500/- (WHICH WOU LD BE AROUND 6% INCREASE AS COMPARED TO AY 2004-05). WE THUS DIRECT ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED AS PER DIRECTIONS HEREINABOVE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (MUKUL KR. SHRAWAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 26/02/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,