AI Drafter 
TaxTMI 
TaxTMI 
2020 (9) TMI 182
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....ssessees have raised as many as 13 grounds of similar nature, consisting of legality of the assessment conducted under section 153 A of the IT Act and denial of exemption under section 11 of the Act. Owing to the similarity in the grounds raised, they are being adjudicated together. 2. The facts of the cases in brief, are that a search and seizure operation u/s.132 of the Income tax Act, 1961, was carried out in this case along with all the institutions/medical colleges and hospitals run by the assessee trust on 18.9.2014 at Head office of Sri Ram Murti Smarak Trsut at 4, LA Place, Lucknow and Registered office of Sri Ram Murti Smarak Trust N-3, & 4 ,MurtiBhawan , Rampur Garden, Civil Lines .Bareilly, (U.P)-243001. 3. The Trust, as part of its educational activity, runs: (I). Shri Ram Murti Smarak Institute of medical Science. (SRMS-IMS), 13 Kilometres on Bareillt Nainital Road, Bhojipura ,Bareilly (II). Shri Ram Murti Smarak School of Nursing 13 Kilometres on Bareilly Nainital Road, Bhojipura, Bareilly. (III) Shri Ram Murti Smarak Institute of Paramedical Science, 13 Kilometres on Bareilly Nainital Road, Bhojipura ,Bareilly 13 Kilometres on Bareill....
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....000 2) Anuj Agrawal 50,00,000 73,00,000 C A Sir 7,50,000 65,00,000 Cash De 1000*2500 25,00,000 500 *8100 40,50,000 65,00,000 Shri Aditya Murti denied having any knowledge about these two names though the page was found from his bedroom. 8. From the findings of the Party MM-5 at the medical college it was gathered that Shri Shobhit Pal was an undergraduate student admitted to the medical college in the academic session 2013-14. His records were also impounded as Annexure LP-6 from the Medical College. His record showed that Rs. 9,08,500/- was paid as fee and other charges during admission. Hence the AO held that the amount of Rs. 23,00,000/-, as mentioned on the seized paper, is a clear-cut evidence of acceptance of capitation fee over and above the usual fee for the said course. 9. Similarly case records of Shri Anuj Agarwal was found and impounded by the Party- MM-5 as Annexure LP-7. From the record it is evident that Shri Anuj Agarwal is a post graduate (MD) student of the medical college admitted for session 2013-14. An ....
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....residence at Lucknow on 15/10/2014. He denied having any idea about Ms. Ambika Mittal and stated that the amount written on the paper is just a rough calculation done at Accounts section. The AO held that the seized paper is one more evidence for acceptance of capitation fee/donation, over and above the normal fee for the course, by the Sri Ram Murti Trust while admitting students to the medical college. 16. During the course of assessment proceedings the assessee trust was again confronted on this point vide point No. 11 of questionnaire dated 07/11/2006 reproduced below:- 1. Pl go through the page No. 27 of Annexure LP-1 seized documents from the Bareilly residence of Shri Dev Murti and family (Party MR-1), containing page number 1 to 27, on which the following two students' name were found: - 1) ShobhitPal 23,00,000 2) AnujAgrawal 50,00,000 73,00,000 C A Sir 7,50,000 65,00,000 Cash De 1000*2500 25,00,000 500 *8100 40,50,000 65,00,000 .. Records of Shobhit Pal and Anuj Agrawal found and impounded as ....
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....tors slip used at the Trust whose specimen is reproduced below------ while slip in question was lying there some rough calculation appears to have been done on its back. On verification of front & back of the said your good self will find that on both sides even writing is different. Further, rough calculation is in two different hand writing. Thus , on a small piece of paper three different hand writings are there. In case of any doubt direct confirmation may be obtained from the student by sending notice u/s. 133(6) , as no capitation is received by the trust , whatever fee is received , the same is duly recorded in the books of account." 18. The AO held that these documents cannot be termed as dumb documents. Based on these facts as emerging out of seized /impounded documents the AO held that it may be reasonably inferred that the SRMS Trust had been taking Rs. 25,00,000/- as capitation fees on an average per student for admission in the MBBS course and Rs. 75,00,000/- for MD/MS course. Holding thus the AO made addition of an amounts spread over the 7 years of assessment under section 153A . The details are as under: TABLE-A Batch Range(Rs.) Average 20....
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....n of learned CIT(A), while confirming the addition, is reproduced as Under: .... "I have examined the facts & circumstances of the case. I have considered the finding of the AO in the assessment order and the submissions of the appellant made during the appellate proceedings. The AO has noted that during the course of search at the premises situated at Rampur Garden, Bareilly, incriminating documents Annexure LP1- page 1 to 27, was found and seized from the room of Shri Aditya Murti on which name of two persons Shobhit Pal, Anuj Agarwal and amounts was found to be written, details of which are given as under: 1) ShobhitPal 23,00,000 2) AnujAgrawal 50,00,000 73,00,000 C A Sir 7,50,000 65,00,000 Cash De 1000*2500 25,00,000 500 *8100 40,50,000 65,00,000 ... Further it was noted by the AO that Shri Shobhit Pal was the undergraduate student at the medical College admitted for the academic session 2013-14 which is based on the records impounded as Annexure LP-6 from the Medical College and had paid Rs. 9,08,500/- a....
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....es not prove anything, Annexure LP-2, Page no. 26 is just an visitor's slips which assessee has substantiated during assessment proceedings as well and explained above and Annexure LP-1, Page no. 27 is some rough calculations only, incidentally name of 2 students are mentioned in front of them. Ld. Assessing Officer has grossly erred in concluding that assessee is receiving capitation fees on the basis of above slips only, which is nothing but dumb documents. ... The appellant has further stated that the addition has been made by the AO by extrapolating on the basis of loose slips found and by assuming that capitation fees has been received for all students despite the fact that only 3 loose slips found wherein name of the 3 students were mentioned, out of these 3 students, 2 were admitted in academic session 2013-14 and one student was admitted in academic session 2014-15. The appellant has contended that the AO was not justified in extrapolating the average of capitation fees received in the case of M/s Rohilkhand Educational & Charitable Trust in the case of the appellant. ... On examination, I find that incriminating document annexure LP-1 page 1 to 27 wer....
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....ation and it reflects the true state of affairs of the appellant trust. It substantiates the fact that the appellant has charged capitation fees over and above the admission fees charged for under graduate and post graduate courses for the year under consideration. Hence appellant's contention that documents found and seized during the course of search are rough and dumb documents and no incriminating documents were found during search is devoid of any merit and is found to be unacceptable. ..... Considering the totality of facts and circumstances of the case and the material on record, I find that the appellant has charged capitation fees, over and above the admission fees charged for graduate and under graduate courses for the year under consideration, hence addition of Rs. 8,00,00,000/- made by the AO on account of undisclosed receipts of capitation fees on the basis of the comparable case of M/s Rohilkhand Educational & Charitable Trust is held to be justified & is hereby upheld. 22. Aggrieved with the order of the LD.CIT(A), the assessee filed appeal before the ITAT, Lucknow. 23. During the arguments before us, the learned A.R. reiterated the arguments taken....
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....ssee is in the course of collection of capitation fees on a regular basis. 25. Heard the arguments of both the parties and perused the records available before us. 26. We have gone through the seized materials mainly page No. 27 of Annexure LP1, page No. 26 of LP2 and Annexure A-11, the same are as under: (The scanned copies) 27. For the adjudicatory purpose, we have examined evidence collected by the revenue and other factors which were considered /not considered while resorting the addition and consequent extrapolation. 28. The evidence collected is, the writings on an empty envelope in which no money was found. There is another slip which is a visitor's slip. Other than these two slips there was no evidence in the possession of the revenue. Cash of Rs. 7.3 crores was also found during the search action. We have examined the issue in the context of the post search investigations, assessment completed and the material on record. * Whether any examination/enquiry as to the handwriting on the seized material namely, the envelope and the visitor slip - NO * Whether any statement of the students mentioned on the envelopes has been recorded - ....
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....uch books of account and other documents are true; and (iii) that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.] [(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 132A then, the provisions of sub-section (1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub- section (1) of section 132A, had been found in the possession or control of that person in the course of a search under section 132.]" 30. In respect of Section 132(4A), the Hon'ble Supreme Court in the case of P.R. Metrani v. CIT, 287 IT....
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....hen presumption would be raised against that other person. 32. In the absence of working out of the basic parameters regarding the ownership of transactions as to how they culminate into the determination of concealed income, the presumptive clauses provided u/s 132(4A) cannot be invoked in the instant case. 33. We have also considered the fact of seizure of cash and its relation to the collection of capitation fees. The cash balance as per the books of account as on 18.09.2014 was Rs. 8.5 crores. The cash seized was Rs. 6.6 crores. Hence, the revenue's endeavor to relate the presence of cash to collection of capitation fee false flat. The issue of cash seizure is dealt further in this order about its source, accountability, reconciliation and taxation thereof. 34. We find that there has been a sequence of admission of Shobhit Pal and Anuj Agarwal to the medical courses which has been narrated above. No examination of the students from whom the amounts purportedly have been received has been undertaken by the revenue to prove receipt of donation. The writings on the empty envelops have not been examined. Other than the loose papers, there has been no evidence corrobo....
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....t to our notice various statements recorded by the Revenue authorities on the date of search as well as during the post search enquiries. 38. Learned DR. argued that the fact the cash has been found at the premises of Shri Dev Murti cannot be disputed and hence, the same needs to be assessed in the hands of Shri Dev Murti as unexplained income. Rebutting the arguments of Learned DR., Learned A. R. argued that it has been submitted time and again along with the evidence that the cash belongs to the assessee trust and the books of account seized by the department shows Rs. 8,50,72,654/- as cash balance as on 18/09/2014. Hence under no circumstances, it can be treated the cash belonging to Shri Dev Murti as unaccounted. 39. Further during recording of the statement on oath of Shri Dev Murti on 15/12/2014, question No. 1 to 5, it was again clarified that the amount found and seized belongs to the assessee trust and is duly accounted for and also complete reconciliation along with the supporting vouchers and bank statements have been submitted. The summary of the cash reconciliation is as under: 40. We have heard the arguments and perused the statement and facts on record....
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....on shall be carried out under the effective supervision of the officer who authorizes the officers to file appeals before the tribunal so as to avoid duplication. ITA 300/Lkw/2019 (AY 2015-16) 44. The only issue involved in this case is the addition of cash seized during the search conducted in the premises on 18/09/2014 in the group cases of Shri Ram Murti Smarak Trust. The cash seized has been treated as income of the assessee whereas it has been explained undisputedly that the cash belongs to the trust in which the assessee is a trustee. The material found during the course of search, books of account and the cash found have to be examined together rather than in isolation and it should reflect the true state of affairs of the assessee. The taxation has to be done as per law in the correct hands. Since we have already adjudicated on the issue of cash seizure in the case of the trust, we hereby delete the addition made in the hands of the trustee. I.T.A.Nos. 437 & 438/Lkw/2019. Valuation of properties/Unexplained investment in the building: 45. During the course of assessment proceedings, the valuation of buildings of various institutions of the SRMS trust at Barei....
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.... चामà¥à¤£à¥à¤¡à¤¾ विहार- रामनगर से पà¥à¤°à¥‹à¥¦ काजीपà¥à¤° Por जिο Rest- 05942274:282 Document 4å±± 1000×2500. 18/04/2014 CORE DOCUMENT NO-S 60 Document 5 Document 6Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 7Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/....
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....ही कर पाये थे, आपसे पà¥à¤¨à¤ƒ इसके शà¥à¤°à¥‹à¤¤ से संबनà¥à¤§à¤¿à¤¤ साकà¥à¤·à¤¯ को पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ करने का अवसर दिया जा रहा है, कà¥à¤¯à¤¾ आ आज इनà¥à¤¹à¥‡à¤‚ पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ कर सकते हैं ? उतà¥à¤¤à¤° : जी हां, इसके साकà¥à¤·à¤¯ के रूप में मैंने à¤à¤• cash recondiliation statement बनवाया है, जिसमें कि विà¤à¤¿à¤¨à¥à¤¨ लेखा पà¥à¤¸à¥à¤¤à¤•à¥‹à¤‚ कà....
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....¤¾à¤¥ बरेली से दूर सà¥à¤¥à¤¿à¤¤ लखनऊ à¤à¤µà¤‚ लखनऊ सà¥à¤¥à¤¿à¤¤ बैंक लाकर में ला कर रखते हैं । कृ→या सà¥à¤·à¥à¤Ÿ करें ? उतà¥à¤¤à¤° ; जो कैश का reconciliation मेरे दà¥à¤µà¤¾à¤°à¤¾ बनवाया गया है वह afterthought इसलिठनही कहा जा सकता कà¥à¤¯à¥‹à¤‚कि विà¤à¤¾à¤— दà¥à¤µà¤¾à¤°à¤¾ seized documents के अनà¥à¤¸à¤¾à¤° कà¥à¤² कैश 10.18 करोड़ है तथा different locations search parties ko cash mila 9.06 k....