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Section 158BC of the Income-tax Act, 1961 - Block assessment in search cases - Procedure for - Assessment year 1993-94 - Assessee, in return of income, had disclosed gifts of certain amount made by certain persons with necessary documents in support of same - Later, a search and seizure operation under section 132 was carried out in premises of assessee's father - No incriminating material insofar as assessee was concerned was discovered during said search - However, Assessing Officer resorted to section 158BC and treated those gifts as concealed income and an attempt at money laundering - Whether since no incriminating material was found in course of search to suggest that gifts were bogus, Assessing Officer could not take resort to provisions of Chapter XIV-B - Held, yes CASE REFERRED TO CIT v. Elegant Homes (P.) Ltd. [2003] 259 ITR 232/[2002] 124 Taxman 819 (Raj.) [Para 8] Jagdish R. Goel and Vishnu Sharma for the Appellant. Prakash Kumar for the Respondent. JUDGMENT Madan B. Lokur, J. - The Revenue is aggrieved by an order dated 16th August, 2004 passed by the Income-tax Appellate Tribunal Bench 'E' (for short the Tribunal) in ITA No. 13/Del/2001. 2. The only ground agitated by the Revenue in this appeal under section 260A of the Income-tax Act, 1961 (the Act) is with regard to deleting an addition of Rs. 10,20,000 by the Assessing Officer. 3. The assessee had filed its return of income for the assessment year 1993-94 in which it had disclosed gifts of a total of Rs. 10 lakhs made by two persons and another gift of Rs. 20,000 made by a third person. The assessee furnished necessary documents in support of the gifts received by him. 4. It appears that a search and seizure operation was carried out under section 132 of the Act sometime in February, 1997 in the premises of the assessee's father. No incriminating material in so far as the assessee is concerned was discovered during the search. However, the Assessing Officer resorted to section 158BC of the Act and treated these gifts as concealed income and an attempt at money laundering. 5. In appeal, the Commissioner of Income-tax (Appeals) [for short CIT(A)] took the view that to consider the amounts for the…

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