Can a doctor lie?

You may always think of a doctor as the most truthful person.But in many occasions Doctors are forced to lie.
I still remember the face of an elderly Gentleman who was suffering from terminal Liver Cancer.The family did not want to disclose the truth to the patient.Each time he come for a consultation his face search my face questioningly.Several times he had asked me about the gravity of his illness and always I had given him false hopes.Fortunately I was not at his bedside when he died.Few months later his Son came to me for something.I asked him about his father's last days.He said it was terrible.His Dad while dying was blaming his son for not giving proper care.He also blamed me for not finding out the correct diagnosis.
I have heard that in Western Countries they believe in disclosing everything to the patient.In a way that is good.The patient will know the truth and will be able to fulfill his last wishes and die peacefully.In India the Society and the family always tries to hide the truth from the patient.They believe that the patient may not be able to face the truth and may suffer from severe mental trauma hearing the bad news. But I feel disclosing the truth is better.What do you think?