Dismissing the appeal the Court held that the statement made by the assessee’s father-in-law was not helpful in explaining the source of payment of Rs. 23 lakhs as capitation fees and he had only explained the payment of Rs. 7.18 lakhs as regular fees. There being no credible explanation offered by the assessee for the payment made as capitation fees, the AO was justified in adding it to the assessee’s income. Order of Appellate Tribunal is held to be justified . (AY.2013-14)
Sushil Bansal v. PCIT (2020) 426 ITR 535 (Delhi)(HC)
S. 69C : Unexplained expenditure – Capitation fee paid to medical college for admission of assessee’s son — Source not explained satisfactorily- Addition is held to be justified .