TMI Blog2008 (8) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment in the block period can only be done on the basis of the evidence found as a result of search. Following the same, we feel that the finding returned by the Tribunal in the impugned judgment with regard to the bank statements cannot be interfered with. In Vishal Aggarwal [ 2005 (5) TMI 33 - DELHI HIGH COURT] the Tribunal in a similar situation had returned the finding that there was nothing in the assessment order to show that any evidence was found during the search to suggest that the gifts were bogus. The gifts having been declared in the returns of income, fell outside the purview of Chapter XIV-B of the Income Tax Act, 1961. In such a similar situation, this Court in Vishal Aggarwal (Supra), did not interfere with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount received from non-resident individuals by the assessee and his minor son were bogus. The admitted position with regard to this issue is that the assessee had disclosed the said gifts in his returns of income for the years 1993-94 and 1994-95. It is also an admitted position that no assessment under Section 143 (3) of the Income Tax Act, 1961, had been done. However, the returns have been processed under Section 143 (1) (a) of the Income Tax Act, 1961. It is also not in dispute that what was discovered or found in the course of a search, which was conducted on 17.01.1998 in the assessee s residential premises, were only the gift deeds and the affidavits relating to the said gifts by the donors. 3. Being aggrieved by the additions m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income-tax (Appeals) held that as the conclusion of the Assessing Officer was unsupported by any adverse material found or seized during the search, the gifts were outside the purview of the block assessment of undisclosed income as defined under Section 158 (B) (b) of the Income Tax Act, 1961. Accordingly, he deleted the addition of ₹ 6,50,000/- attributable to the said gifts. 4. In the revenue s appeal before the Tribunal, the findings of the Commissioner of Income-tax (Appeals) were confirmed. Before the Tribunal, the revenue had contended that the Assessing Officer was entitled to make the assessment of the undisclosed income not only on the basis of the evidence found as a result of search, but also on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a result of search is clearly relatable to Sections 132 132A. .......... 5. It is therefore, clear that the assessment in the block period can only be done on the basis of the evidence found as a result of search. In this case, the bank statements were not found as a result of the search nor are they relatable to any evidence which was found during the course of search. In view of the said decision and the clear position of law, we feel that the finding returned by the Tribunal in the impugned judgment with regard to the bank statements cannot be interfered with. 6. As regards the gifts, the Tribunal felt that it was not necessary to go into the question as to whether the alleged gifts were genuine or represented the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aj) that in Chapter XIV-B of the Act, special provisions for assessment in search cases have been given and if any amount of income has not been taxed and during the course of search, if some undisclosed income is found on the basis of the material seized, that should be treated as undisclosed income. As per the scheme of special assessment under Chapter XIV-B, the assessment has to be based on incriminating material found in the course of the search. In the present case, all that was found were the gift deeds and the affidavits and there was no incriminating material found in the course of search to suggest that the gifts were bogus. In Vishal Aggarwal (Supra) the Tribunal in a similar situation had returned the finding that there was noth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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