TaxTMI 
TaxTMI 
2020 (1) TMI 959
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the assessee on 15.12.2010. The assessment proceeding was also completed for the assessment years 2005-06 to 2011-12 consequent to the second search. According to the Ld.AR, there was a third search in the premises of the assessee on 30.07.2013. Consequent upon the search, a notice was issued to the assessee U/s.153A of the Act, for filing the return of income. 4. Shri G. Baskar, the Ld.Counsel for the assessee submitted that the assessee is an educational trust registered U/s.12AA of the Income Tax Act, 1961 (in short 'the Act'). The assessee trust established and managing several institutions such as Medical College, Engineering College, Polytechnic College, Arts & Science College, Catering Colleges apart from Schools. During the course of search proceedings, the Revenue authorities found the receipt of voluntary donations from various individuals. The assessee by letter dated 11.01.2016 disclosed the Assessing Officer the receipt of Rs. 5,34,58,159/- being the voluntary donations said to be received from various individuals. However in the books of account, it was found that the assessee claimed only a sum of Rs. 5,31,58,159/- as voluntary donation received. The assessee exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the so called donations as anonymous and brought the same for taxation. According to the Ld.DR, M/s. Meenakshi Ammal Trust and Shri Muthukumaran Educational Trust was functioning in the same premises. During the course of search operation, it was found by the Revenue authorities that the assessee was in the habit of receiving donations. The Ld.DR further submitted that the so called donation said to be received by the assessee is also deposited in the bank account in various branches of several banks. The Ld.DR further submitted that the accountant of the assessee trust was examined. Shri Muthusamy, the Chief Accountant of the assessee trust explained before the Assessing Officer that M/s. Muthukumaran Educational Trust manages 7 educational institutions and M/s. Meenakshi Ammal Trust manages 19 educational institutions. Even though the assessee filed an affidavit before the Revenue authorities, during the course of search operation the assessee admitted that several persons gave voluntary donation by means of demand draft and some of the individuals who gave donation filed confirmation letters, however majority of the donors have not filed confirmation letters. Even though th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....14 in Para No.3.2.1:- "During the course of search it was found that the assessee trust was in the habit of receiving donations but accommodating such donations received as if they were received from students. It was evident from receipt books and torn vouchers seized from the Trust Office vide ANN/CS/MAT/B&D/S1/1 to 5" From the above observation of the Assessing Officer for the assessment year 2013-14, an impression was created as if they were collected from students. However, it is not known whether such donations were collected from the students over and above the fees prescribed by the High Level Committee constituted by the State Government headed by the retired Judge of High Court. 6.1 It is a known fact that the State Government has constituted a High Level Committee headed by a High Court Judge for determining the fees for the professional colleges. Once the fee was prescribed by the High Level Committee, the assessee is expected to collect only those fees fixed by the Committee. In this case, the seized material as referred to in Para No.3.2.1 of the assessment order for the assessment year 2013-14 gives an impression that the amount was collected from the students. Ho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....extent of Rs. 12,19,59,501/-. According to the Ld.AR, the assessee has recorded the entire receipts in the books of account and it was deposited in the bank accounts. The Assessing Officer claims that it is anonymous donations. However, the assessee claims that it is tuition fees collected from the students and the deposit collected from the outpatients from the medical college and dental college. According to the Ld.AR, only the classification or the source for the deposit is in dispute. The fact that the assessee has disclosed the entire receipts before the Assessing Officer is not in dispute. Since the amount was collected from the students and the out patients and the same was deposited in the bank account and the assessee claims the same as exempted U/s.11 of the Act. Therefore, it is neither the case of concealment of income nor furnishing any inaccurate particulars. Merely because the assessee could not explain the receipt of money to the satisfaction of the Assessing Officer, it does not mean that the assessee furnished any inaccurate particulars or concealed any part of the income. Therefore the CIT(A) is not justified in confirming the penalty levied by the Assessing Of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s to be made U/s.153C of the Act. Therefore the provisions of Section 271AAA of the Act cannot be made applicable to a person other than the searched person. 10. We have considered the rival submissions on either side and perused the material available on record. Admittedly there was cash deposit in the bank account. The Assessing Officer at Page No.2 of the impugned order reproduced the submission of the assessee which indicates the cash deposit to the extent of Rs. 17,86,93,107/-. The assessee claimed before the Assessing Officer that Rs. 5,67,33,606/- was from opening cash on hand. However the Assessing Officer found that there was a cash deposit of Rs. 18.79 crores at Page No. 4 of the impugned order. The assessee has not maintained any proper books of account. Even though the Assessing Officer found that the cash deposit was Rs. 18.79 crores, he found that income sought to be evaded was Rs. 12,19,59,501/-. Accordingly he levied penalty. Therefore, it is obvious that the opening cash to the extent of Rs. 5,67,33,606/- said to be in the hands of the assessee was accepted by the Assessing Officer and the balance of Rs. 12,19,59,501/- was considered for levying of penalty. 10.....