Case Law Details
Ananda Social & Education Trust Vs ACIT (ITAT Bangalore)
The issue under consideration is whether Addition relating to suppression of fee receipts of Management/ NRI quota and Post graduate seats are justified in law?
The assessee is a charitable trust established for educational purposes in the year 1980. It has set up a medical college by name Dr B.R. Ambedkar Medical College and Hospital offering both under graduate and post graduate courses. It also runs a Dental college and nursing college. The issues under consideration are related to Medical college only. A search was conducted on the premises of the assessee, following which the assessing officer, however, completed the assessments rejecting the claim of exemption u/s 11 of the Act and also making additions towards suppression of fees.
ITAT states that, in the instant case, the AO’s case is that the assessee has suppressed the fees received by it for giving admission under management/NRI quota. The AO did not accept the explanations of the assessee in this regard. However, he did not bring any material on record to show that the assessee, indeed, collected fees over and above that were accounted for in the books of account. The assessing officer did not reveal/discuss the result of enquiry conducted by him by issuing notices u/s 133(6) of the Act. Hence the assessee has contended that the assessing officer did not receive any adverse reply from the students. Even though the AO has observed that huge cash was seized during the course of search, yet it was shown by the assessee that all those cash are accounted for in the books of accounts.
Hence ITAT are unable to sustain the view taken by Ld AO on this issue. Accordingly, they set aside the order and direct the AO to delete the addition made towards suppression of fee on MBBS Management Quota and Post graduate seats.
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