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TMI Blog2011 (4) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... of the f irm M/s. Hotel Panchami, Thiruvalla. There was a search in his residential premises at Thal iparamaba and the business premises of the firm M/s. Hotel Panchami at Thiruval la, on 29-07-1999. Based on the search, block assessment proceedings were initiated by issue of notice u/s.158BC. In response, assessee f i led return of income declaring NIL undisclosed income. However on appeal the ld. CIT(Appeals) vide his order in ITA CO57/01-02 dated 10-03-2003 cancel led the assessment and directed to initiate proceedings u/s.158BD. After recording the reasons, the Assessing Of f icer framed the assessment. 3. The first issue is regarding the marriage gifts and presentations to the extent of ₹ 1,50,000. The assessee claimed that at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is relied. It is a customary practice that during the marriage, gifts and presentations from close relatives and friends are accepted. Assessee also hails from an af f luent family of agriculturists having more than 25 acres of land including with other family members, which are cultivated rubber, arecanut, pepper etc. It is a settled law that without material this cannot be taken as undisclosed income. When there are specific confirmations from the donors, the ld. CIT (Appeals) failed to appreciate the same. It is not disputed that the assessee got married in January 1992. On the other hand, the ld. CIT., DR supported the orders of the authorities below by strengthening the decisions of the ld. CIT(Appeals). 4. After considering the ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1995-96 to 1998-99, as under: Assessment Year Amount Rs. 1995-96 1,25,000 1996-97 1,45,000 1997-98 1,25,000 1998-99 2,55,000 The Assessing Officer was of the view that in the statement recorded u/s.132(4) the assessee has accepted the agricultural income only at ₹ 40,000/-. However, in the regular return it is stated as above. At the cost of repetition the search is 29-07-1999. Before the date of search, in the regular return for the above four years pertaining to assessment year 1995-96 to 1998-99 the above amounts were disclosed as agricultural income. Therefore, this is ninflated agricultural income and treated as undisclosed income and brought to tax. This was objected by the assessee. It is the explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings the assessee was able to establish by producing Certificate from the Village Officer regarding the nature of the property, agricultural expenses, No., of trees in the property and the details of gross agricultural income and without considering the above particulars, the property situated in Alakkode Village besides his wife's property including the family property which comes nearly to the extent of 25.20 acres, which is certified as belonging to the assessee and his family was given a go by the Assessing Officer. The certificate also says that they were cultivating the entire 25 acres of land being looked after by the parents of the assessee. Wife is staying alongwith parents and the entire family is cultivating rubber, are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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