Sushil Bansal Vs PCIT-19 (Delhi High Court)
The appeal before the Delhi High Court challenged an order of the Income Tax Appellate Tribunal (ITAT) for Assessment Year (AY) 2013-14. The assessee had not filed a return of income for the relevant assessment year. During a search under Section 132 of the Income-tax Act conducted in the Santosh Group of Institutions, material was found indicating that, at the time of admission of the assessee’s son to an MBBS course in Santosh Medical College, a payment of ₹23 lakh had been received as capitation fee in addition to the regular college fees. The Chairman and Managing Trustee of the group admitted to accepting capitation fees and furnished student-wise working sheets in which the name of the assessee’s son appeared with a capitation fee entry of ₹23 lakh.
Based on this material, proceedings were initiated by issuing a notice under Section 148 of the Act. Notices under Section 142(1) were also issued, but the assessee did not initially respond. Subsequently, pursuant to summons under Section 131, the assessee appeared before the Assessing Officer (AO) and stated that the admission process had been handled by his father-in-law and that he was unaware of any payment of capitation fee.
