TaxTMI 
TaxTMI 
2020 (4) TMI 211
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....f M/s. Arihant Educational Society at Bommakal Village, Karimnagar on 25/07/2013 which is running a medical college in the name of Chalimeda Ananda Rao Institute of Medical Science (CAIMS). During the course of search and seizure operation evidences indicating collection of capitation fees/donation over and above the regular fee fixed by the Government for management quota seats in medical college were found and seized. As per the information received from the office of the DCIT, Central Circle-2(2), Hyderabad, it was noticed that the assessee has paid Rs. 30.00 lakhs (over and above the regular fee) towards admission of his son Dr. Alluri Rajesh Verma in P.G. course for the academic year 2011-12. The information received by the DCIT, Ce....
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.... of income neither in his own hand nor in the hands of his son. Hence, addition of Rs. 35,79,600/- (Rs. 30,00,000 + Rs. 5,79,600) is treated as unexplained cash credits in the hands of the assessee and added the same to the total income of the assessee. 3. On being aggrieved, assessee carried the matter in appeal before the ld. CIT(A). So far as entry of Rs. 30.00 lakhs found in the books of account of M/s. Arihant Educational Society is concerned, the ld. CIT(A) gave a finding that the documents seized by the department u/sec. 132 is corroborative by the statement given by the cashier of the college. It is conclusively proved that the assessee has made payment to the extent of Rs. 30.00 lakhs during the F.Y.2011-12 relevant to the A.Y. ....
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....he orders of the authorities below. 7. There is a search and seizure carried on in the case of M/s.Arihant Educational Society where seized material was found to the extent of Rs. 30.00 lakhs. A statement of the cashier was recorded u/sec. 132(4) and accordingly issued notices to the assessee calling explanation in respect of cash payment made by the assessee relating to the admission of his son into P.G. medical course under management quota. The assessee categorically explained that he has not paid any amount over and above the fee as prescribed by the Government. However, the Assessing Officer not accepted the explanation of the assessee and based on the seized material and statement of the cashier, addition of Rs. 30.00 lakhs was mad....
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....t given by the cashier of the college addition was made. Therefore, the addition is based on the statement of the third party though assessee has not specifically asked for cross examination, it is the duty of the Assessing Officer to give opportunity to the assessee and allow him cross-examination. In this case, the assessee specifically denied that he has not paid any amount other than the amount paid by him as per the Government prescribed fee. Keeping in view of the principles laid down by the Hon'ble Supreme Court in the above referred to case, the addition made by the Assessing Officer has to be deleted and the order of the ld. CIT(A) has to be cancelled. Accordingly, I find that the order passed by the ld.CIT(A) is not correct th....