BHARATI SAPRU,J. - (1.) This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') has been filed against the order dated 10.08.2007 passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad in the assessee's appeal for the Assessment Year 2003-04. The appeal was admitted on the following questions of law:- "(i) Whether on a true and correct interpretation of the provisions of section 145, the ITAT was legally correct in upholding the rejection of books of account and estimate of income from the profession of surgery and consultancy as was carried on by the appellant? (iv) Whether there exist any basis for estimating the income from the medical profession as carried on by the assessee @ 50% of the receipts, as enhanced?" Admittedly, the assessee is a practicing doctor (surgeon) who had been running a nursing home. On 18.12.2002 a survey under Section 133A of the Act was conducted at the nursing home of the assessee. During that survey, various account books and registers were examined and also seized, including the OPD register, Indoor Patient register and certain other loose papers. In his return for the A.Y. 2003-04, the assessee filed his return disclosing total income at Rs. 2,24,600/-. Subsequently, the said assessment was taken up for scrutiny wherein the assessing officer noted that upon test check being made there some discrepancy were noted between the entries recorded in the books of account of the assessee and registers and documents seized during the survey. However, the nature and extent of such discrepancy was disclosed in the assessment order. The assessing officer then proceeded to reject the assessee's books of account under Section 145(3) of the Act on the reasoning that the entries made in the OPD and Indoor Patient register and books of account were supported by vouchers of payments received from patients. The assessing officer thereafter estimated the income of assessee at Rs. 20,83,000/-.
(2.) Against the aforesaid assessment order, the assessee filed first appeal before the Commissioner (Appeals). It was partly allowed by order dated 23.08.2006. While the CIT (Appeals) made certain deletions, in so far as rejection of the books of account is concerned, the same was upheld.
(3.) Being aggrieved, the assessee as also the revenue appealed before Income Tax Appellate Tribunal, Allahabad. The Tribunal has vide it's order dated 10.08.2007 rejected both the appeals and confirmed the order passed by the CIT (Appeals).;