2020 (1) TMI 605

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....961 (in short 'the Act'). 2. Shri G. Baskar, the Ld. Counsel for the assessee submitted that the Assessing Officer levied penalty U/s.271(1)(c) of the Act. During the year under consideration, the assessee deposited Rs. 3,29,10,765/- in Indian Bank, Valasaravakkam & Thousand Light Branches. The assessee explained before the Assessing Officer that these amounts were from and out of the tuition fees, out-patient deposit collection from medical college run by the trust. The assessee also explained that the out-patient deposit and pharmacy collections from the hospital run by the trust were deposited in the bank account. The Assessing Officer claims that it is anonymous donations. However, the assessee claims that it is the tuition fees c....

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....alls within the specified previous year within the meaning of Section 271AAA(4) of the Act. Hence, the penalty if at all to be levied only U/s.271AAA of the Act and definitely not U/s.271(1)(c) of the Act. 3. On the contrary, Shri A. Sundararajan, the Ld. Departmental Representative submitted that during the course of search proceedings, several incriminating materials were found. On verification there was a huge cash deposit to the extent of Rs. 36.36 Crores to various branches / accounts of Indian Bank. The assessee has not maintained any proper books of account. Even after conclusion of search on 10.02.2011, the assessee could not produce any books of account to establish the so called collection of deposit from out-patients. The Asse....

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....t of Rs. 36,36,57,478/-. The assessee has not maintained any proper books of account. Even though the Assessing Officer found that the cash deposit was Rs. 36.36 crores, he found that income sought to be evaded was Rs. 3,29,10,765/-. Accordingly he levied penalty. 4.1 The fact that the entire amount was deposited in the bank account was not in dispute. The assessee claims that the cash deposited was from students and out-patients. However the Assessing Officer claims that it is from anonymous donations. An identical issue was considered by this Tribunal in the case of M/s. Balaji Educational & Charitable Public Trust Vs. ACIT in ITA186/Mds/2014 dated 24.07.2015, this Tribunal found that the assessee explained before the Assessing Officer....