TMI Blog2019 (3) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee in his Returns filed after the search. In fact, on the basis of disclosure of Undisclosed Income made by the Assessee himself in the Return of Income after search was made to the extent of ₹ 23,65,700/- and the same was brought to tax, the Assessee has paid tax thereon. Therefore, even though such Capitation fee was presumed by the Assessing Authority to have been paid out of Undisclosed Income, there was no reason to impose tax separately on the said amount and the same could have been very well taken as paid out of Declared Undisclosed Income in the Return filed by the Assessee after the search. We cannot sustain such an addition merely on the basis of the alleged admission made by the Assessee in the Statements. Suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion made in the statements recorded u/s 132 (4) which too, as we have found in the present case, does not support the case of the Revenue at all. Therefore, we find that the orders passed by both the Appellate Authorities below are perverse and unsustainable - Appeal of the Assessee deserves to be allowed - T.C.(A) NO. 584 of 2008 - - - Dated:- 7-3-2019 - DR. VINEET KOTHARI AND MR C. V. KARTHIKEYAN, JJ. For The Appellant : Mr R. Sivaraman For The Respondent : Mrs. K.G. Usha Rani, Jr. Standing Counsel JUDGMENT Dr.Vineet Kothari, J. Assessee has filed this Appeal, raising the following Substantial Question of Law, arising from the order of the learned Income Tax Appellate Tribunal, in short, Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar is around ₹ 60,000. He was admitted in June,2000. Question No.12 : Please give the details of total fee including capitation fee paid by you for your son to the Stayabhama Engineering College. Answer : My son was admitted to this college in July 2000 for which I paid a capitation fee of ₹ 5 lacs and another ₹ 60,000 was paid towards annual fee. 3. The Assessing Authority made additions of the said sum of ₹ 5,60,000/- in the hands of the Assessee in the Assessment proceedings conducted under Section 158BC of the Act vide Assessment Order, dated 30.05.2003. The Preamble of the said Assessment Order would also reveal that the Assessee, after the Search, filed a Return of Income on 18.02.2003 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation of details available on record, it could be seen that the sworn statement recorded from the assessee on 22-5-2001 to the effect that his son was admitted to this college in July 2000 for which the assessee paid a capital fees of ₹ 5 lakhs and another ₹ 60,000/- was paid towards annual fees, was not retracted by the assessee at any level of the proceedings. Under the circumstances, we are of the considered opinion that the authorities below were perfectly justified in including the said sum of ₹ 5,60,000/- in the total undisclosed income of the assessee relating to the block period under consideration. 10. Further, Sec.132 being a complete Code in itself cannot intrude into any other provisions of the Act. Simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contra, learned Standing Counsel for the Respondent-Revenue supported the impugned order. 7. Having heard the learned counsel for the parties and upon perusal of the findings rendered by the Appellate Authorities and also the learned Tribunal, we are satisfied that the present Appeal filed by the Assessee deserves to be allowed and the Question of Law framed above deserves to be answered in favour of the Assessee. 8. Merely because the Statements recorded under Section 132 (4) of the Act are admissible in evidence, it does not mean that the said statements or their contents can be read out of context and beyond the terms of the statements itself and without the corroborating material. There is no admission on the part of the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic admission can not result in a sustainable addition in the declared income, attracting imposition of tax thereon. 11. Upon the Court question to the learned Standing Counsel for the Revenue that if the Capitation Fee was an illegal payment and without authority of law, did the Department take any action against the recipient of such Capitation Fee, namely, the Satyabhama Engineering College, Chennai, the learned Standing Counsel submitted that no such action appears to have been taken against the said College. 12. The scourge of Capitation Fee by Medical and Engineering Colleges is an infamous and thoroughly extortionist act that is going on in the education sector in our country and it is almost a known fact that these so called Ed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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