TaxTMI 
TaxTMI 
2021 (6) TMI 310
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 5.1. During the assessment proceedings, the Assessing Officer observed that: "As per information received from DCIT, Central Circle-2(2), Hyderabad that a search & Seizure operation u/s. 132 was conducted in the case of M/s. Arihant Educational Society on 25.07.2013. During the search operation, it was noticed that the appellant had paid Rs. 20,00,000/- to M/s. Arihant Educational Society prescribed by government and additional amount of Rs. 15,00,000/- for the purpose of admission of his son D. Srujan Samrat. Since it is the material available from search & seizure proceedings, the Assessing Officer issued notices u/s. 153C to the appellant. During the year, the assessee paid Rs. 10,00,000/- towards tuition fee out of total amount of Rs. 35,00,000/-. The assessee explained that he worked as school teacher and the sources for payment of fee are out of salary savings & loan amounts. The Assessing Officer asked the assessee to explain as to why the payment and sources of capitation fee of Rs. 5,00,000/- should not be treated as unexplained expenditure. In response, the assessee submitted that he had paid Rs. 30,00,000/- but not Rs. 35,00,000/-. However, a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 16.03.2016 and Radhasoami Satsang Vs. CIT 193 ITR 321 (SC)." 5.3. With regard to the above submissions as submitted by the appellant, a remand report was called for from the Assessing Officer on 10.05.2018. Accordingly, the Assessing Officer submitted his remand report on 25.05.2018, which is as under: "Keeping in view the facts of the case and considering the failure on part of the assessee in furnishing the sources for the payment of Rs. 15,00,000/- as capitation fee despite the opportunities accorded, the objections raised by the assessee through the written submissions filed before the Appellate Authority in support of the non-payment of fee over and above explained fee of Rs. 30,00,000/- may not be considered. " 5.4. The remand report was given to the appellant on 31.07.2018. In response, the appellant submitted written submissions dated 28.01.2019, which is as follows: "The appellant submitted that the Ld. ITO mentioned that he has initially received information from DCIT, Central Circle-2(2) on 29.08.2016, where in it was mentioned that the assessee has paid Rs. 30,00,000/- and subsequently further information received from same....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated 18.12.2017 for which the AR has acknowledged. Further the Ld. ITO has asked for the explanation for differential amount of Rs. 5,00,000/- which found by him from the wrongly mentioned total amount without considering the date-wise payments (which was Rs. 10,00,000/- only.) The AR clearly submitted that the assessee paid only Rs. 10,00,000/- as capitation fee. But the Ld. ITO without considering the AR statements and also without verifying the total of the date wise payments, within a short period of late hours on 18.12.2017, recorded order sheet and completed assessment with a wrong addition of Rs. 5,00,000/-. 5.5. With regard to the above submissions of the appellant, once again a remand report was called for from the Assessing Officer on 27.08.2018. In response the Assessing Officer submitted his remand report on 17.09.2018, which is as under: "A search & Seizure operation u/s. 132 was conducted in the M/s. Arihant Educational Society on 25.07.2013. It was noticed from the seized material that Sri D. Ganapathi had paid Rs. 20,00,000/- as prescribed fees and Rs. 15,00,000/- as capitation fees (collection in excess of prescribed fees) for getting admission of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r Annexure-I & II which are part of seized material, the amount paid by Shri D. Ganapati towards prescribed fee and capitation fees is Rs. 35,00,000/- and assessee contention that he has paid only Rs. 30,00,000/- towards both the fees is incorrect. However, as per the assessee's submissions dated 20.08.2018 before the CIT(A) it is to submit that the assessee was requested to furnish the prescribed fee and amount paid in cash over and above prescribed fee details basing on the letter of DCIT, Central Circle-2(2), Hyderabad's letter dated 11.08.2016 vide notice u/s. 142(2) dated 06.09.2017 and show cause letter dated 23.11.2017. As per the search material the fee payment details were available in part only and since the assessee also has not fully furnished the receipts for prescribed fee and donations for verification, letters dated 12.10.2017 and 22.11.2017 were written to DCIT, Central Circle-2(2), Hyderabad requesting for copy of appraisal report so as to enable this office to compile the information and complete the assessment proceedings in the instant case. Meanwhile, a letter dated 07.11.2017 was also addressed to the AR, M/s. Arihant Educational Soc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....round, I have carefully considered the facts of the case, assessment order, remand report dated 25.05.2018 & 17.09.2018 and submissions of the appellant. As per annexures enclosed in remand report dated 17.09.2018, it is seen that Rs. 35 lakhs was agreed by the appellant for his son Sri, D. Srujan Samrat and has paid Rs. 17.5 lakhs. The balance of Rs. 17.5 lakhs is yet to be paid. Since the detailed reasons mentioned by the Assessing Officer in the remand reports, it is seen that the appellant had explained sources for Rs. 30 lakhs, however failed to explain the sources for difference amount of Rs. 5 lakhs. Hence the submissions of the appellant are not accepted and the addition made by the Assessing Officer on account of non-explanation of sources for the difference amount of Rs. 5 lakhs made, is confirmed". 3. We have given our thoughtful consideration to rival pleadings against and in support of the impugned addition. The same admittedly has arisen about the alleged seized material found in the course of search action dt. 25-07-2013 in case of M/s. Arihant Educational Society indicating the assessee to have paid capitation fee of Rs. 5 lakhs over and above that declared of Rs....