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Summons under Section 131 of the Act were issued to Shri Bhati and his statements were recorded. According to Shri Bhati, he gave a total fees of Rs. 7.18 lacs to Santosh Medical College for the admission of Dr. Jatin Bansal. He had no recollection of payment of any capitation fee. Further, out of the abovementioned Rs. 7.18 lacs, Rs. 3 lacs was stated to have been given by the grandfather of the present Appellant/Assessee and the remaining Rs. 4.18 lacs was withdrawn from the bank account of Shri Bhati.

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Sec. 69C of Income Tax Act, 1961—Unexplained Expenditure— With there being no credible explanation offered by the Assessee for the payment made as capitation fee, AO was justified in making additions under section 69C as the AO has taken pains to summon the father-in-law of the Assessee and record his statement but unfortunately, the statement made by the Assessee’s father-in-law was not helpful in explaining the source of payment of capitation fees - SUSHIL BANSAL V/s PR. CIT - [2020] 426 ITR 535 (DELHI)

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