COMMISSIONER OF INCOME TAX Vs. RAMAKRISHNA NURSING HOME

JUDGEMENT

(1.) 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 charged to the account of the Nursing Home any time. THE assessee also filed a joint statement of 36 visiting specialists, wherein all the visiting specialists have stated that they were collecting the fee from the patients directly and it was not charged to the account of the assessee.

(3.) THE following substantial questions of law is formulated for consideration: In ITA No. 435/2003