The Assistant Commissioner of Income-tax, Central Circle I(2), Chennai v. M/s. Ragas Educational Society
[Citation -2016-LL-0923-199]

Citation 2016-LL-0923-199
Appellant Name The Assistant Commissioner of Income-tax, Central Circle I(2), Chennai
Respondent Name M/s. Ragas Educational Society
Court ITAT-Chennai
Relevant Act Income-tax
Date of Order 23/09/2016
Assessment Year 2007-08
Judgment View Judgment
Keyword Tags search and seizure operation • educational society • corpus donation
Bot Summary: The assessee filed an appeal before the Ld. CIT(A)-I, Chennai, who called for a remand report from the Assessing Officer. In the remand report dated 03.03.2011, inter alia, the Assessing officer pointed out that the total amount received for MDS course was.7,92,75,000/- for 47 candidates. In the assessment made under section 153C r.w.s. 153A r.w.s. 143(3) of the Act, the Assessing Officer added. The Assessing Officer requested the Ld. CIT(A) to enhance the assessment by.28,25,000/-. Per contra, the Ld. AR has submitted that the Ld. CIT(A) considered the issue and supported the order passed by the Ld. CIT(A). From the materials furnished by the Department and the remand report filed by the Assessing officer, it is clear that the Ld. CIT(A) has not considered the enhancement proposal submitted by the Assessing Officer in his order. In view of that, we set aside the order passed by the Ld. CIT(A) and remit this issue back to the Ld. CIT(A), who shall provide adequate opportunities to the Assessee as well as the Assessing Officer and decide the appeal in accordance with law.


IN INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI Before Shri N.R.S. Ganesan, Judicial Member & Shri S. Jayaraman, Accountant Member I.T.A.No.592/Mds/2012 Assessment Year :2007-08 Assistant Commissioner of M/s. Ragas Educational Society, Income Tax, Vs. No.2/102, East Coast Road, Central Circle I(2), Uthandi, Chennai 600 119. Chennai 600 034. [PAN: AAATR3106Q] ( Appellant) (Respondent) Appellant by : Shri Durai Pandian, JCIT Respondent by : Shri S. Sridhar, Advocate Date of hearing : 24.08.2016 Date of Pronounce ment : 23.09.2016 O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: This appeal filed by Revenue is directed against order of Ld. Commissioner of Income Tax (Appeals) I, Chennai, in ITA No. 303/08-09 dated 08.01.2012 pertaining to assessment year 2007-08. 2. facts in brief are that assessee runs educational institution offering dental courses viz., BDS, MDS & Dental, Mechanical Courses, etc. Consequent upon search and seizure operation in its case dated 23.02.2007, assessee filed return admitting income of .5,05,03,922/- 2 I.T.A. No.592/M/12 under section 115BBC of Income Tax Act, 1961 [ Act in short]. In assessment proceedings, Assessing Officer added .94,96,078/- , corpus donation received by assessee as undisclosed income. assessee filed appeal before Ld. CIT(A)-I, Chennai, who called for remand report from Assessing Officer. In remand report dated 03.03.2011, inter alia, Assessing officer pointed out that total amount received for MDS course was .7,92,75,000/- for 47 candidates. Out of which, fees received for course was .1,64,50,000/- [@ .3,50,000/- per candidate for 47 candidates]. balance .6,28,25,000/- [ .7,92,75,000 .1,64,50,000/-] is capitation fees received for MDS course. However, assessee admitted .5,05,03,992/- only towards corpus donation under section 115BBC of Act. In assessment made under section 153C r.w.s. 153A r.w.s. 143(3) of Act, Assessing Officer added .94,96,078/-, representing corpus donation, as unexplained cash. Thus, total income assessed under head unaccounted capitation fees was .6 crores only. balance .28,25,000/- stood un- assessed. Therefore, Assessing Officer requested Ld. CIT(A) to enhance assessment by .28,25,000/-. After receipt of remand report, ld. CIT(A) passed appeal order dated 08.01.2012, wherein, he sustained addition of .4 lakhs only. 3 I.T.A. No.592/M/12 3. Aggrieved against that order, Department filed this appeal pointing out factual report given by Assessing Officer in remand report dated 03.03.2011 and contended that Ld. CIT(A) has wrongly granted relief of .94,96,078/- and .28,25,000/- without considering remand report/seized materials. 4. Before us, by filing copy of sworn statement, seized materials and remand report dated 03.03.2011, Ld. DR has submitted that Ld. CIT(A) failed to take cognizance of facts and address enhancement proposal submitted by Assessing Officer in remand report. Per contra, Ld. AR has submitted that Ld. CIT(A) considered issue and supported order passed by Ld. CIT(A). 5. We have heard rival contentions, perused materials available on record and gone through orders of authorities below. From materials furnished by Department and remand report filed by Assessing officer, it is clear that Ld. CIT(A) has not considered enhancement proposal submitted by Assessing Officer in his order. In view of that, we set aside order passed by Ld. CIT(A) and remit this issue back to Ld. CIT(A), who shall provide adequate opportunities to Assessee as well as Assessing Officer and decide appeal in accordance with law. Thus, grounds raised by Revenue are allowed. 4 I.T.A. No.592/M/12 6. In result, appeal of Revenue is allowed for statistical purposes. Order pronounced on 23rd of September, 2016 at Chennai. Sd/- Sd/- (N.R.S. GANESAN) (S. JAYARAMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai, Dated, 23.09.2016 Vm/- Copy to: 1. Appellant, 2. Respondent, 3. CIT(A), 4. CIT, 5. /DR & 6. GF. Assistant Commissioner of Income-tax, Central Circle I(2), Chennai v. M/s. Ragas Educational Society
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