Reassessment initiated on statement of hospital manager that doctor didn’t disclose full consultancy fees held valid
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 31 August, 2021
Latest from Taxmann
Case details: Dr. Sajan Hedge v. ACIT - [2021] 129 taxmann.com 215 (Madras)
Judiciary and Counsel Details
-
- S.M. Subramaniam, J.
- Suhrith Parthasarathyfor the Petitioner.
- Ms. Hema Murali Krishnan, Sr. Standing Counsel, for the Respondent.
Facts of the Case
Assessee was an ortho-pediatrician and surgeon. A reopening notice was issued on the ground of statement of person who was manager in the Hospital in which assessee was practicing. In the recorded statement, the manager stated that based on number of patients visited, income from consultation fees received by assessee from hospital practice was much more than what was shown by him.
Assessee submitted that the copy of the manager’s statement was not enclosed along with the show cause notice issued. The revenue pointed out that even presuming it was not enclosed, assessee had not sought the copy immediately. Even in the letter sent subsequently, there was no mention regarding furnishing of the said statement. However, the said statement was subsequently handed over to the authorized representative of assessee. Assessee filed a writ to seek further opportunity to submit elaborate objections.
High Court Held
On writ, Madras High Court held that quashing the reassessment proceedings and providing an opportunity to submit further objections would cause prejudice to the revenue. Contrarily, assessee may be permitted to submit all his further objections based on the statement, enabling AO to proceed with the assessment or reassessment. Thus, instead of quashing the entire proceedings, it was sufficient if an opportunity was provided to assessee to submit additional objections.
List of Cases Referred to
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
