TMI Blog2014 (7) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the common order of the Tribunal in as much as, the Tribunal has not adjudicated the issue of addition of ₹ 18 lakhs made towards unaccounted capitation fees collected for the course of Nursing. The Tribunal found that the Revenue is right in pointing out that the said ground raised by the Revenue for the assessment year 2008-09 in ITA No.1475/Mds/2010 has not been adjudicated by the Tribunal. In order to rectify the above mistake, the Tribunal recalled its common order dated 30th July, 2012 partially, for the purpose of deciding the said ground. The recalling order was passed by the Tribunal on 20th June, 2014. 4. It is in the manner stated above that this appeal for the assessment year 2008-09 filed by the Revenue is coming up f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. In the above circumstances, the assessing authority treated the sum of ₹ 18 lakhs, as unaccounted capitation fees collected by the assessee for the impugned assessment year against the admission to Nursing course and added the same to its taxable income. 7. In first appeal, the assessee explained before the Commissioner of Income-tax(Appeals) that the demand drafts found in the course of search were payments made by the applicants towards fees and dues and the payments were adjusted towards fees in the case of students admitted for the Nursing course and in respect of other applicants, the amounts were returned back. The Commissioner of Income-tax(Appeals) has accepted the explanation of the assessee and deleted the said additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , nothing prevents the assessee from bringing those amounts in its regular books of account. Keeping such a huge amount of ₹ 18 lakhs outside the books of account cannot be justified at all. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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