TaxTMI 
TaxTMI 
2026 (8) TMI 393
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....o as 'the Act') is filed by the Revenue, aggrieved by the common Order of the Income Tax Appellate Tribunal "C" Bench, Bangalore (hereinafter referred to as 'the Tribunal') dated 29.05.2020, by which, the Tribunal dismissed the appeals filed by the Revenue in ITA Nos.2654-2660(B)2017)for the assessment years (hereinafter referred to as 'AY') 2008-09 to 2014-15 and allowed the appeals filed by the assessee in ITA Nos.2542-2548(B)/2017 for the AYs 2008-09 to 2014-15. These appeals have been filed by the Revenue, aggrieved by the Order of dismissal of the appeal filed by the Revenue and the order allowing the appeal filed by the assessee for the AY 2009-10. 2. The brief facts of the case are as under: A search and seizure action un....
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....ppeals filed by the Revenue. Aggrieved by the dismissal of the Appeal filed by the Revenue and against allowing of the appeal filed by the assessee for the AY 2009-10, the Revenue is in appeal before this Court. 4. ITA.No.112/2022 was admitted on 15.02.2022 to examine the following substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the addition's made by assessing authority towards unaccounted fees charged for UG and PG seats ignoring evidence brought on record by assessing authority and when collection of capitation fee by assessee is not voluntary which can partake character of income for purpose of section 2(24)(iia) of the Act and section 1....
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....hether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse in nature as relief to assessee is granted by deleting all additions made by Assessing Authority? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in deleting additions made towards fee charged for seats under Management/NRI Quota for undergraduate MBBS Programme, unaccounted fees received from PG Courses, Unaccounted income on account of fee charged for seats filled up against COEMED-K cancellation as per management quota fees and setting aside denial of exemption under section 11 and 12 of the Act ignoring seized materials and intention of legislature in granting exemption under section ....
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....ayana T appearing for the assessee would support the order passed by the Tribunal and submit that the findings recorded by the Tribunal are pure findings of fact based on a proper appreciation of the evidence on record. It is submitted that the additions made by the AO were founded entirely on unsigned loose sheets, visitors' slips and diary entries, none of which conclusively established receipt of any unaccounted income by the assessee. It is further submitted that the AO did not conduct any independent enquiry with the students, parents or any other independent person to verify whether any amount over and above the fees recorded in the books had in fact been collected. Learned senior counsel would contend that the Tribunal, after con....
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....se that the assessee had adopted a similar pattern in every year. The Tribunal found that there was no material to support such an inference and that the additions for the above AYs were based only on presumption. The Revenue has not pointed out any material to demonstrate that the said finding is erroneous or perverse. 11. With regard to AYs 2009-10 and 2014-15, insofar as the addition relating to MBBS Management/NRI quota seats is concerned, the Tribunal has noticed that the AO relied upon visitors' slips, diary entries and certain loose sheets recovered during the search. The assessee had consistently explained that the figures noted therein represented negotiations with prospective candidates and not the final amount received. Th....
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....while considering the additions relating to PG seats. It has noticed that the diary maintained by the Personal Assistant to the erstwhile Chairman Sri. P.L. Nanjundaswamy contained entries only in respect of certain candidates and substantially related to AY 2014-15. However, the AO neither examined the concerned students or their parents nor brought any material on record to disprove the explanations offered by the assessee. The Tribunal has further noticed that the AO estimated the alleged suppression of fees in respect of the remaining seats without any supporting material and also sought to apply the circumstances prevailing in one AY to another. The Tribunal has therefore held that the additions were based on presumptions, which could ....