Case Law Details
Krishna D. Pawar Vs ITO (ITAT Mumbai)
ITAT Mumbai held that addition towards unexplained expenditure u/s 69C of the Income Tax Act simply on the basis of scribbling note without any other oral/ documentary evidences is unwarranted and unsustainable.
Facts- During the course of assessment, AO noted that assessee has made payment of Rs. 95 Lakhs to Singhad Technical Education Society (STES) for the admission of his daughter. Accordingly, AO issued show cause notice asking as to why Rs. 95 Lakhs paid as capitation fees to STES for admission of his daughter should not be added to his total income as unexplained expenditure u/s. 69C of the Act.
Not satisfied with the reply, AO confirmed the addition of Rs. 95 Lakhs u/s. 69C. CIT(A) upheld the addition. Accordingly, being aggrieved, the present appeal is filed.
Conclusion- Only on the basis of the scribbling note without any other oral/documentary evidence to support the allegation of capitation fees it is quite unsafe to fasten addition. So in the facts and circumstances discussed supra, we are of the opinion that addition is not warranted. And therefore the impugned addition of Rs 95 Lakhs is deleted.
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