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TMI Blog2013 (6) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... ome returned in his regular returns, and there were no seized material with the Revenue for invoking Section 153A of the Act. 4. Since the above issue goes to the root of the assessment and also since it is a common grievance of the assessee for all the years, this issue is dealt with first. 5. Facts apropos are that there was a search under Section 132 of the Act conducted in the premises of one M/s Srinivasa Foundation on 14.2.2007 and 15.2.2007. It seems Revenue had some information which caused it to conduct a survey in the business premises of the assessee on 15.2.2007. Such survey was converted into search under Section 132 on the very same day. As per the Revenue, during the course of search proceedings, certain books and documents were seized apart from cash of Rs. 2,03,480/-. Thereafter proceeding under Section 153A was initiated for all the impugned assessment years except for assessment year 2007-08. For assessment year 2007-08, proceedings were under Section 143(3) of the Act since search was conducted within the previous year relevant to the said assessment year. For assessment years other than assessment year 2007-08, assessee had filed returns in response to notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eliance was placed on the decision of Hon'ble Delhi High Court in the case of CIT v. Anil Kumar Bhatia (352 ITR 493) and also the decision of Special Bench of this Tribunal in the case of All Cargo Global Logistics Ltd. v. DCIT (137 ITD 287). 9. Ad libitum reply of the learned A.R. was that Hon'ble Delhi High Court had specifically left open the question whether Section 153A could be invoked, where no incriminating materials were found at the time, and this was mentioned at para 23 of its judgment. 10. We have perused the orders and heard the rival submissions. Hon'ble Delhi High Court in the case of Anil Kumar Bhatia (supra) had held at para 22 of its order, as under:- "…… but in cases where the assessment or reassessment proceedings have already been completed and assessment orders have been passed determining the assessee's total income and such orders are subsisting at the time when the search or the requisition is made, there is no question of any abatement since no proceedings are pending. In this latter situation, the Assessing Officer will reopen the assessments or reassessments already made (without having the need to follow the strict provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to invoke Section 153A of the Act, when no incriminating material was found. Considering the facts of the case here, in the light of the judgment of Hon'ble Delhi High Court (supra), it is clearly mentioned in the assessment order that there were certain books and documents seized at the time of search in the business premises of the assessee. Such seized documents have been mentioned as Annexure ANN/MM/B&D/S. A cash of Rs. 2,03,480/- was also found. Once such incriminating materials were found during search, we are of the opinion that Section 153A stood triggered. Further, for assessment year 2007-08, the assessment was done under Section 143(3) of the Act and the Assessing Officer had not invoked any power under Section 153A of the Act. Therefore, the grounds raised by the assessee for 2007-08 in this regard have no merit. We are of the opinion that Assessing Officer was justified in invoking his jurisdiction under Section 153A of the Act, and doing assessments under the said section. Grounds taken in this regard are dismissed. 12. Now, we take up merits of the various additions and deletions. Assessment Year 2001-02 11. Grievance of the assessee is that an addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs 2002-03 & 2003-04 16. Addition made for these assessment years were for gifts of Rs. 1 lakh each, which was claimed by the assessee to have been received from his father. Though the assessee filed confirmation from Shri Seeralan, his father for such gifts, Assessing Officer was not impressed. As per the A.O., assessee's father was not a tax payer, nor maintaining any balance sheet. Gifts were not given as cheques. He treated the gifts as income from undisclosed sources. CIT(Appeals), on assessee's appeal, confirmed these additions. 17. Now before us, learned A.R. submitted that assessee had filed confirmations for the gifts from his father. Assessee's faher was an agriculturist. Hence, it was not necessary to have any PAN. Assessing Officer had never required the assessee to produce his father before him. Just because assessee could not furnish a fund flow statement of his father, an addition ought not have been made. 18. Per contra, learned D.R. supported the orders of authorities below. 19. We have perused the orders and heard the rival submissions. For the sum of Rs. 1 lakh each shown by the assessee as received during the previous years relevant to these two assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at assessee had shown following agricultural income in his return for various assessment years as under:- Assessment Year Agricultural land held Agricultural income 2002-03 2.14 acres Rs. 35,750/- 2003-04 2.14 acres Rs. 38,750/- 2004-05 2.14 acres Rs. 38,750/- 2005-06 2.14 acres Rs. 39,250 2006-07 2.14 acres 20.8 acres (bought on 28.9.05) Rs. 5,69,518/- 2007-08 22.9 acres Rs. 8,36,000/- Contention of the assessee before the Assessing Officer was that he had purchased 20.30 acres of land during financial year relevant to assessment year 2006-07 and such land was having coffee, pepper, cloves and cardamom cultivated therein. As per the assessee, sale proceeds were received by cheques and credited in his Indian Bank account at Ulagankathan Village. Assessee also filed a separate income and expenditure statement justifying the claim of agricultural income. Assessing Officer accepted the claim of agricultural income for assessment years 2002-03 to 2005-06. However, he refused to consider such claims for assessment years 2006-07 and 2007-08. According to the A.O., assessee was unable to substantiate the receipts from sale of agricultural produce and could not prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006-07, acquired agricultural land of 20.30 acres at Kolli Hills, Salem District. Even prior to assessment year 2006-07, assessee was having agricultural income, though of much smaller quantum. Agricultural income for earlier years were from 2.14 acres of land and these were accepted by the Assessing Officer. However, for impugned assessment year, assessee was unable to file the adangal extracts before the Assessing Officer who held that mere ownership of agricultural land would not prove earning of agricultural income. What we notice is that assessee had indeed filed an income & expenditure statement for its agricultural operations before the Assessing Officer. No doubt, adangal extract was filed by the assessee for the first time before CIT(Appeals) during the course of appellate proceeding. However, in the circumstances of the case, we are of the opinion that such additional evidence ought have been admitted by the CIT(Appeals). Once assessee had proved holding of agricultural land of 20.30 acres, to presume that no agricultural income was derived therefrom, was in our opinion, unfair. We are of the opinion that the matter, therefore, requires a fresh look by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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