INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Capitation fees -

A search and seizure operation under section 132 was carried out along with all the institutions/medical colleges and hospitals run by the assessee-trust and it was found that said trust was charging substantial amount in the nature of capitation fees from the students over the years which were not being accounted for in the accounts of the trust. Thus, AO made addition of an amounts spread over the 7 years of assessment under section 153A.Held: No examination of the students from whom the amounts purportedly had been received has been undertaken by the revenue to prove receipt of donation. The writings on the empty envelops had not been examined. Other than the loose papers, there had been no evidence corroborating receipt of the amounts. It was also found that no primary evidence had been available with the Revenue authorities extrapolating the amount and work out the donation purportedly received. The addition had been made on the strength of two papers wherein the amount been purportedly written cannot be held to be valid. Having given due consideration to of the seized material, having mulled over the arguments of assessee. and AO, after going through the presumption as to assets, books of accounts under section 292C and after examining the process of admission as per UPUMCWA, addition made by AO cannot be held to be legally valid and so as the extrapolation made by AO for the other years.

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2009-10 to 2015-16

INCOME TAX ACT, 1961

Section 153A

SUBSCRIBE FOR FULL CONTENT