Income Tax Addition for Capitation Fees Rejected Because Statement Was Uncorroborated

CIT Vs Saveetha Institute of Medical (Madras High Court) The High Court dismissed the Revenue’s tax appeals challenging the orders of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal in a case arising from a search conducted under Section 132 of the Income Tax Act at an educational institution. The Department alleged that the trust running the college collected capitation fees from students and diverted funds for personal benefit, relying mainly on seized slips showing student admissions and a statement by a managing trustee admitting collection of ₹1 lakh as ...