INCOME TAX ACT, 1961,

Section 69C

Income from undisclosed sources - Addition under section 69C - Unexplained capitation fees -

Assessee made payment of regular fees and capitation fees at time of admission of his son in college. The assessee's contention was that capitation fees was paid by his father in law, but no credible evidence explaining source of capitation fees forthcoming. Therefore, AO added it to income of the assessee under section 69C, which was confirmed by CIT(A) and Tribunal. Held: The AO had taken pains to summon the father-in-law of the assessee and record his statement, but statement made by the assessee's father-in-law was not helpful in explaining the source of payment of capitation fees. The assessee's father-in-law only explained the payment of regular fees. There was no credible explanation offered by the assessee for the payment made as capitation fee. Thus, the AO was justified in adding payment of capitation fees to the assessee's income.

REFERRED :

FAVOUR : Against the assessee

A.Y. :

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