TaxTMI 
TaxTMI 
2021 (6) TMI 507
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....of the case penalty of Rs. 9,54,952/- imposed under section 271 (1) (c) of the Income Tax Act, 1961 is erroneous and bad in law. (ii) Because order of CIT (Appeals) confirming the penalty of Rs. 9,54,952/- is illegal. The penalty is liable to be cancelled. The assessee is a society and engaged in the activity of running educational institution. The assessee has filed its return of income on 12th February, 2008 declaring 'nil income'. There was a survey under Section 133 A of Income Tax Act at school and office premises of the assessee on 6.12.2006 during which certain facts were detected from the record of the assessee. The A.O. in the assessment proceedings noted that there a discrepancy in the student fee as shown by the asses....
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....9/- pertaining to Allahabad unit and Rs. 5,95,195/-for Lucknow unit. The Assessing Officer has estimated the fee receipt for the entire financial year on the basis of compilation of fee income for one month and multiplying by 12. Thus, the Ld. AR has contended that the addition made by the Assessing Officer is based on estimation of the income of the assessee and thereby the case of the assessee does not fall in the ambit of furnishing inaccurate particulars of income or concealment of particulars of income. The Assessee Officer has estimated the fee receipt without considering the fact that for all the 12 months the receipt from the students is not uniformed but there are defaults and outstanding amounts in respect of the students who have....
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....ty under Section 271 (1) (c) in respect of the addition made on account of under reporting of student fee during the year under consideration. The Assessing Officer has given class wise details of the student fee per student and total amount in two tables at page no. 2 and 3 of the assessment orders as under; " at the time of survey, class wise students and their fees for one month S. No. Class No. of Section No.of Students Fees per Student Total Amount (Rs) 1 Pre Nursery 1 2 350 750 2 Nursery 1 17 350 5950 3 Prep. 1 23 350 8050 4 Class-1 1 43 625 16875 5 Class-2 1 36 625 22500 6 Class-3 1 44 625 27500 7 Cla....
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.... Rs. 1,39,200/- Total Rs. 1,75,22,850/- " 6. These facts as recorded by the Assessing Officer in the assessment order are not disputed by the assessee sofar as the number of students and fee per student to be received by the assessee. The Assessing Officer by taking these facts into consideration has computed the total fee receipt of the assessee for 12 months. Even otherwise these facts were detected and taken during the survey proceedings under Section 133 A of the Income Tax Act. Once the facts regarding the number of students and fee per student as recorded by the Assessing Officer are not in dispute then the estimation made by the Assessing Officer is not based on guesswork but it is the c....
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....er is confirmed up to the stage of this Tribunal in the quantum proceeding and the assessee has not brought on record any new fact to contradict the amount of total fee computed by the Assessing Officer then, this contention of the assessee is without any material to substantiate the same. It is undisputed that the assessee has reported the total fee of Rs. 1,52,34,584/- as against the computation of the fee by the Assessing Officer at Rs. 1,75,22,850/-. Once the computation of the fee by the Assessing Officer is based on the correct facts then the discrepancy in the fee shown by the assessee in the books would amount to furnishing of inaccurate particulars of income. The explanation of assessee is not supported by any facts or details ther....