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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 ..... 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 issued under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 provisions or complying with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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 of Rs. 2,30,000/- made for unexplained cash credit was sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditors. Assessee had not furnished the PAN of the creditors nor any confirmation letters from them. Basic evidence required for the Assessing Officer to do a verification of the claim was never made available. In such circumstances, in our opinion, mere repayment of loans at a later point of time would not be a justification for considering the credits to be explained. We are, therefore, of the opinion that the addition was rightly done by the A.O. and confirmed by the CIT(Appeals). 15. As far as disallowance of interest is concerned, since loans themselves treated as unexplained, there is no question of interest being allowed. Such interest is also sustained. Assessment Years 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23. Per contra, learned D.R. supported the orders of authorities below. 24. We have perused the orders and heard the rival submissions. Arguments advanced by the learned A.R. shows that he is not aggrieved by the addition for closing stock of Rs. 2,52,952/-. His only grievance is that similar increase in opening stock for succeeding year ought have been allowed. We find such claim to be justified. We direct the Assessing Officer to consider the opening stock of land for the next previous year at the same value at which he considered the closing stock of the land for the relevant previous year. Related grounds are, therefore, treated as partly allowed. 25. Facts with regard to third grievance is that 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/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmed the addition under the head income from undisclosed sources . 27. Now before us, learned A.R. submitted that the ownership of the land was not disputed. It was a fact that assessee had cultivation of pepper, coffee and cardamom in his land. When assessee was owning 20.30 acres of land in which crops like pepper, cardamom and coffee were cultivated, it was unreasonable for the Revenue to presume that no income was derived therefrom. In such circumstances, as per the learned A.R., not to consider the additional evidence in the form of adangal extract filed by the assessee, was a travesty of justice. 28. Per contra, learned D.R., strongly supporting the orders of authorities below, submitted that nothing stopped the assessee from producing the adangal extract before the Assessing Officer and there was no circumstance as mentioned in Rule 46A(1) which would admit such additional evidence at the stage of the appellate proceeding. 29. We have perused the orders and heard the rival submissions. There is no dispute that assessee had, during the previous year relevant to assessment year 2006-07, acquired agricultural land of 20.30 acres at Kolli Hills, Salem District. Even p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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