2008 (8) TMI 897

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....e addition made by the Assessing Officer on the basis of certain bank statements discovered during the post search inquiry. The addition made by the Assessing Officer was to the extent of Rs. 3,10,000/- by way of undisclosed income based on the said bank statements. It is an admitted position that the said bank statements were discovered in the course of a search during the 'post search inquiry' conducted by the Assessing Officer. 2. The second issue sought to be raised by the learned counsel for the appellant is with regard to the additions made by the Assessing Officer to the extent of Rs. 6,50,000/- on account of his finding that the gifts of the said amount received from non-resident individuals by the assessee and his minor son were....

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....hich supported the gifts, namely, the gift deeds and the affidavits of the donors. The Commissioner of Income-tax (Appeals) noted that nothing incriminating was found in the course of search which would go to indicate that the gifts were bogus. He noted that the doubts and suspicions discussed in the assessment order by the Assessing Officer arose during the course of post search inquiry. He also noted that except for suspicion, there was no concrete evidence for the Assessing Officer to hold that the gifts were bogus. It was also noted that, in addition, the gifts already stood discussed in the regular returns of income filed earlier. Consequently, the Commissioner of Income-tax (Appeals) held that as the conclusion of the Assessing Office....

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.... special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. As the statutory provisions go to show, it is not intended to be a substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of account or documents and such other materials or information as are available with the Assessing Officer. Evidence found as a result of search is clearly relatable to Sections 132 & 132A. .........."   ....

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....e with the assessee which could be relied upon by the assessee before the Department in the event his claim of having received the NRI gifts was called in question. The Tribunal returned a finding that there was no nexus between the addition amounting to Rs. 6,50,000/- made by the Assessing Officer on behalf of said gifts and search under Section 132 of the Income Tax Act, 1961. 7. At this juncture, it may be also relevant to notice another decision of this Court in the case CIT v. Vishal Aggarwal : 283 ITR 326 (Delhi) wherein this Court noted, with approval, the observations of the Rajasthan High Court in CIT v. Elegant Homes P. Ltd:259 ITR 232 (Raj) that in Chapter XIV-B of the Act, special provisions for assessment in search cases hav....