TaxTMI 
TaxTMI 
2021 (6) TMI 310
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....ing 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, as per documentary supplied by DCIT, Central Circle total fees paid was Rs. ....
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....llant, 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 office through Email, wherein the assessee paid Rs. 35,00,000/-. The extract of fee details of both the notices received by the Ld. ITO, which is as follows.- Info....
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.... 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 his son Sri D. Srujan Samrat in MBBS for the academic year 2009-10 in Chalimeda Ananda Rao Institute of Medical Science (CAIMS). The assessee has paid Rs. 20,00,000/- as prescribed fees and Rs. 10,00,000/- (as part of capitation fees of Rs. 15,00,000). The part of capitation fees of Rs. 10,00,000 was paid as under: Student....
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....ribed 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 Society, Himayat Nagar, Hyderabad requesting to furnish. the details pertaining to fee receipts of capitation fee/donation over and above regular fee paid along with ledger extract of payments of the candidates, etc. However, M/s. Arihanr Educational Society vide letter dated nil received in this office on 24.11.2017 confirmed that Shri D. Srujan Samrat has been admitted in MBBS course under management quota for the academic year 2009-10 on 07.09.2009 and submitted do....