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TMI Blog2020 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... pers found and seized from the residence of the President of the assessee, an educational institution, indicating capitation fees received by various institutions run by the assessee did not establish correlation document-wise with the assessment years in question, the notice issued under Section 153C of the Act has to be quashed. If we examine the case on hand, we find that the entire case is completely factual. We also find that the CIT(A) has done the factual exercise elaborately and the substantial portion of the order passed by the CIT(A) has been referred to and quoted by the Tribunal in the impugned common order. CIT(A) and the Tribunal held that there was no material brought on record to prove the nexus between withdrawal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NT T.S.SIVAGNANAM, J. These appeals has been filed by the Revenue under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity) challenging the common order dated 27.6.2019 made in I.T.A.Nos.2144 to 2149 and 2153/Chny/2018 on the file of the Income Tax Appellate Tribunal, Chennai, 'C' Bench ('the Tribunal' for brevity) respectively for the assessment years 2009-10 to 2015-16. 2. The above appeals were admitted on the following substantial questions of law: i. Whether, in the facts and circumstances of the case, the Tribunal is right in law in holding that the Assessing Officer ought not to have assumed the jurisdiction under Section 153C of the Act ? ii. Whether, in the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 4. The assessee is a charitable trust registered under Section 12AA of the Act. A search was conducted under Section 132 of the Act during November 2014 in the case of one Dr.S.Gurusankar, managing trustee of the assessee, which established and is administering a multi specialty hospital at Madurai. Simultaneously, the search action was conducted in the case of one Mr.T.John Rajasekhar, who is stated to be the supplier of medical and surgical equipment and other accessories to the hospital. The Department was of the prima facie view pursuant to the search that the funds were siphoned off through the said Mr.T. John Rajasekhar allegedly resorting to huge inflation of expenses through salaries paid to staff members by transfer of funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the correlation the document-wise with the assessment years in question was considered by the Hon'ble Supreme Court in the case of CIT-III, Pune Vs. Sinhgad Technical Education Society [reported in (2017) 84 Taxmann.com 290] wherein the Hon'ble Supreme Court held that where loose papers found and seized from the residence of the President of the assessee, an educational institution, indicating capitation fees received by various institutions run by the assessee did not establish correlation document-wise with the assessment years in question, the notice issued under Section 153C of the Act has to be quashed. The findings of the Hon'ble Supreme Court in this regard are as follows : 18. The ITAT permitted this additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mind, if we examine the case on hand, we find that the entire case is completely factual. We also find that the CIT(A) has done the factual exercise elaborately and the substantial portion of the order passed by the CIT(A) has been referred to and quoted by the Tribunal in the impugned common order. 9. At this juncture, it has to be pointed out that on facts, the CIT(A) and the Tribunal held that there was no material brought on record to prove the nexus between withdrawal of the amount from the bank account of the said Mr.T.John Rajasekhar and the deposits made in the bank accounts of Dr.Gurusankar, managing trustee of the assessee trust. Further, the CIT(A) and the Tribunal noted that the said Mr.T.John Rajasekhar had not admitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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