TaxTMI 
TaxTMI 
2017 (10) TMI 1678
X X X X Extracts X X X X
X X X X Extracts X X X X
....order for the sake of convenience. 2. The effective issue raised in grounds of appeal read as under: "1. For that the grounds of appeal hereto are without prejudice to each other. 2. For that the Ld. CIT(A) has erred in law in confirming the proceeding initiatd u/s 153A in the facts and circumstances of this case. 3. For that the Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 22,300/- on account of gifts received from Shri Satyogati Rs. 21,000/-, Shri U. N. Jha Rs. 1,3000/- duly evidenced by declaration of gifts found in course of search and seizure operation and as such the presumption u/s 132(4)A is in favour of the assessee and the addition therefore is fit to be set aside. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... During the course of search, apart from that gold jewellery, copies of gift deed/ affidavit and pertaining to gifts and papers relating to investment in movable and immovable properties were found and seized by the Department. A notice u/s 153A also issued to the assessee requiring him to furnish the return of income for the year under consideration and in compliance to the said notice, the assessee furnished the return of income on 29.12.2006 declaring total income of Rs. 2,49,230/-. The AO besides making other additions had also passed order of assessment thereby making additions on account of unexplained gifts by mentioning that during the year under consideration the assessee has credited Rs. 2,02,000/- in his account on account of gif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her Ld. DR appearing on behalf of the revenue and after having heard the counsels at length and after perusal of the material placed on record, we find that the present ground raised by the assessee is regarding legal validity of the additions made by the AO u/s 153 A proceedings of the Act under the provisions of section 153A in all cases, where search is conducted u/s 132 of the Act, AO is empowered to assess or reassess total income of six assessment years preceding the assessment year in which search was conducted. The section also provides that assessment or reassessment relating to any assessment year falling within period of six assessment years if pending on the date of initiation of search shall abate. There have been divergent vie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of section 153A is reproduced below:- 153A. (1) Notwithstanding anything contained in section 139, Section 147, section 148, section 149, Section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of may, 2003, the Assessing Officer shall- (a) Issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years (and for the relevant assessment year of years) referred to in clause (b), in the prescribed form and verified in the prescribed manner and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see, but the revenue had no occasion to verify the same. Pursuant to the search, the gift deeds and affidavits were found and seized and thereby became the subject matter of verification by the AO for the first time. We find that the provisions of section 153A categorized that the AO is competent to 'assess' or 'reassess' the total income of 6 assessment years immediately preceding the assessment years relevant to the previous year in which search was conducted. As per the facts of the present case, after seizing the documents and while complying with the provisions of section 153A (b), the AO had proceeded to assess / reassess the total income of 6 assessment years immediately preceding the assessment year relevant to the previous year of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on made towards gifts received by the assessee, it is true that the AO had not resorted to verification of the donors by issuing summons u/s 131 of the Act. It cannot be brushed aside that the assessee also at the same time had not discharged his onus completely by producing the donors before the AO or any other documentary evidence to prove the creditworthiness of the donors and proving the genuinity of the gifts. Hence we deem it fit and appropriate, in the interest of justice and fair-play, and while setting aside the order of the Ld. CIT(A), we remand the issue of verification of gifts to the file of the AO to decide the same afresh, in accordance with law. Needless to mention that reasonable opportunity of being heard be provided to th....