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2015 (11) TMI 1877 - AT - Income TaxAssessment u/s 153A - requirement of issue and service of notice u/s 143(2) - HELD THAT:- We find that the judgment of Hon'ble Allahabad High Court in the case of Rajeev Sharma [2010 (5) TMI 600 - ALLAHABAD HIGH COURT] is in the context of assessment u/s 147 whereas the judgment of Hon’ble Delhi High Court in the case of Ashok Chaddha [2011 (7) TMI 252 - DELHI HIGH COURT] is in the context of assessment u/s 153A and in this judgment, it was held that the requirement of issue and service of notice u/s 143(2) is not applicable in the assessment made in compliance to notice u/s 153A. We also find that in the case of Rajeev Sharma [2010 (5) TMI 600 - ALLAHABAD HIGH COURT] the decision of Hon'ble Allahabad High Court is in favour of the assessee but the same is in the context of section 147 of the Act - Thus in the present case also, we follow the judgment of Hon'ble Delhi High Court and decide the issue against the assessee. Accordingly, ground of the assessee are also rejected. Whether no incriminating material having been found during the course of search & seizure action under section 132(1)? - We find that it was held by Hon'ble Allahabad High Court in the case of Raj Kumar Arora [2014 (10) TMI 255 - ALLAHABAD HIGH COURT] that the reasons given by the Tribunal that no material was found during search cannot be sustained and it is also held by Hon'ble Allahabad High Court that the Assessing Officer has the power to reassess the income of the assessee not only for the undisclosed income which was found during search but also with regard to the material that was available at the time of original assessment. Respectfully following this judgment of Hon'ble Allahabad High Court, we hold that there is no merit in ground and the same is also rejected. Undisclosed expenditure of 7% in respect of India Millennium Bond of 50,000 US$ - As seen that this issue is covered in favour of the assessee by the judgment of Hon'ble Allahabad High Court rendered in the case of Kanchan Singh[2008 (5) TMI 641 - ALLAHABAD HIGH COURT] held there is no reason to doubt the genuineness of gift by Shri K. C. Kapadia to the assessee and therefore, the assessee was able to establish the nature and source of the money because the same were the maturity proceeds of four bonds purchased by Shri K. C. Kapadia on 1st October 1998 and therefore, no addition can be made in assessment year 2004-05. In the present case also, India Millennium Bond of US$ 50,000 were gifted by Jayesh Arvind Bhai Patel of Dubai to the assessee as gift letter dated 18/06/2001. This IMD Bond Certificate was issued by SBI on 05/01/2001 in US$. This date falls in previous year 2000-2001 relevant to assessment year 2001-02 and therefore, as per this judgment of Hon'ble Allahabad High Court cited by Learned A. R. of the assessee, no addition can be made in the present assessment year being assessment year 2002- 03. Hence, respectfully following this judgment of Hon'ble Allahabad High Court, this addition regarding India Millennium Bond is deleted and as a result the second addition of ₹ 17,564/- being alleged undisclosed expenditure of 7% in respect of India Millennium Bond of 50,000 US$ equal to ₹ 24,50,918/- is also deleted. Accordingly ground of assessee are allowed.
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