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2014 (7) TMI 1292 - AT - Income TaxAddition towards unaccounted capitation fees for the course of Nursing - amount as collected in addition to the regular fee payable by each student - amount kept outside the books of account - misappropriation of income - Held that:- The assessee could have accounted the receipts as and when received under a particular provisional head. When the admission process is over, the provisional head could be closed by transferring the amounts to fees and dues account in the case of applicants admitted for the Nursing course, and by returning the amounts in respect of the applicants not selected for the course. Therefore, the explanation of the assessee that the amounts were not recorded in the books of account for the reason that the admission process was not complete at the time of search, is not acceptable in law. The details must be properly recorded atleast in a rough book. It is a clear case that the entire amount of was blacked out of the records of the assessee. The assessee has never explained how, finally, this amount was adjusted or accounted in the books of account. The assessee has not furnished the details that how much amounts were returned to the applicants, who were not admitted to the Nursing course. Assessee society had collected capitation fees from the students admitted to the Nursing course and those capitation fees were kept outside the books of the assessee. Therefore, the Assessing Officer is justified in treating the sum as unaccounted capitation fees. - Decided against assessee.
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