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TMI Blog2023 (3) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... e of pending assessment, which gets merged with assessment u/s 153A. Hence the principles laid down in Kabul Chawla case [ 2015 (9) TMI 80 - DELHI HIGH COURT] with regard assessment u/s 153A of Act have to be on basis of incriminating material found during search in case of completed assessment, do not benefit assessee. Therefore, this ground is decided against the assessee. Addition u/s 69A - Cash gifts receipts unexplained - HELD THAT:- Bench is of considered opinion that the cash/monetary gifts on the occasion referred by the assessee are either customary or out of token of love and affection and intended to be in lieu of material gifts reasonably given on the occasion or as good omen (shagun). These cash gifts, unlike Pin Money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als)-26, New Delhi (hereinafter referred to as the First Appellate Authority or in short Ld. F.A.A. ) in regard to the appeal before it arising out of assessment order dated 31.12.2018 u/s 153A/143(3) of I.T. Act, 1961 (hereinafter referred to as the Act ) passed by ACIT, Central Circle-16, New Delhi (hereinafter referred as Ld. Assessing officer or in short Ld. AO). 2. The facts of the case a search and seizure operation was carried out on Deepak Talwar Group on 22.06.2016 and the case of appellant was also covered under search. Accordingly, the case of Appellant for the above Assessment Year was taken up for search and seizure assessment under Section 153A r.w.s. 143(3) and subsequently a notice under section 142(1) of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AO on this account was deleted by Ld. CIT(A). 3. Assessee has raised following grounds before the this Tribunal : 1. That the Ld. Commissioner of Income Tax Appeals (hereinafter referred as 'CIT(A)') has erred in law and facts of the case while partly confirming the assessment order passed u/s 153 A r.w.s 143(3) of the Income Tax Act. 1961 (hereinafter referred as the act ) dated 31.12.2018. 2. That the Ld. CIT(A) has erred in law and facts while confirming the addition of Rs. 3,50,000/- on account of unexplained cash deposit u/s 69A r.w.s 115BBE of the act, while the appellant left no stone unturned to give the lawful evidence of receipt of such amount during the appeal proceedings and no incriminating material to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly on the basis of incriminating material / evidence found from the possession of appellant. It was submitted that in the absence of any incriminating material found as result of search, no addition could be made in respect of cash gift deposited by the appellant in the bank account and sources being duly explained. Ld. DR however submitted that it is not a case of completed assessment. 6. In this regard it can be observed that Ld. CIT(A) in para no. 8.1 has dealt with the issue and made following observations :- 8.1 During the course of appellate proceedings, the report regarding filing of the IT return of the appellant for A.Y. 2015-16 was called from the AO. The AO vide letter dated had submitted that the return of income for AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(2) of Act was available and before that the search was conducted, so the assessment cannot be considered to be completed assessment. Ld. CIT(A) is right in aforesaid conclusions, as the time period for summary assessment under section 143(1) and for notice under section 143(2) of Act had not lapsed, so it is a case of pending assessment, which gets merged with assessment u/s 153A. Hence the principles laid down in Kabul Chawla case (supra), with regard assessment u/s 153A of Act have to be on basis of incriminating material found during search in case of completed assessment, do not benefit assessee. Therefore, this ground is decided against the assessee. 10. In regard to ground no. 2 it was submitted that assessee had submitted all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en on the occasion or as good omen (shagun). These cash gifts, unlike Pin Money are a little something or spending money to be spent on trivial needs or to create a memory of the event and cash gift itself. 14. However, when an assessee deposits these collected amounts of cash gifts in bank, and thus creates a capital or investment out of these cash gifts, the assessee is expected under law to offer a reasonable explanation of the sources and justification of the occasions and the relationships, to have received heavy denomination cash gifts or beyond threshold limits. Further that under what circumstances these cash gift amount got accumulated over the period, so as to be deposited a lump sum, in particular FY. 15. In the case i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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