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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.R. KRISHNA KUMAR
Kewal Chand Jain, S/o Sri Hastimal Jain – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
| Table of Content |
|---|
| 1. petitioner seeks judicial review. (Para 1 , 2) |
| 2. petitioner's arguments on jurisdiction. (Para 3) |
| 3. requirement of incriminating evidence for assessment. (Para 5 , 9) |
| 4. court's interpretation of section 153c. (Para 6) |
RDER :
S.R.KRISHNA KUMAR, J.
In this petition, petitioner seeks for the following reliefs:-
“ a) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent under Section 153C read with Section 144 of the Income-tax Act, 1961 dated 30.09.2021 for the assessment year 201-16 herein as Annexure-A1.
b) Issue a writ of Certiorari and direction in the nature of is writ of certiorari quashing the computation sheet issued by the Respondent dated 30.09.2021 in respect of assessment year 2015-16 herein marked as Annexure-A2.
c) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of demand issued under section 156 of the Income –tax Act, 1961 by the Respondent dated: 30.09.2021in respect of assessment year 2015-16, for the payment of Rs.99,15,732/- herein marked as Annexure-A3.
d) Issue a writ of Certiorari and direction in the nature of a writ of
The court ruled that assessment orders under Section 153C of the Income Tax Act are void if the petitioner was a searched person and no incriminating evidence was found linking them to potential undi....
For invoking Section 153C, the petitioner must not be treated as a non-searched person; proper jurisdiction requires a satisfaction note linking seized documents to undisclosed income of another part....
The court held that a petitioner searched under Section 132 of the Income Tax Act cannot be treated as a non-searched person for proceedings under Section 153C, and thus impugned notices issued again....
A person may only be assessed under Section 153C of the Income Tax Act if they are not the 'searched person'; procedural safeguards must precede assessment actions.
Satisfaction note u/s 153C invalid if it fails to explicitly state seized materials belonging to assessee have bearing on total income determination; proceedings and assessments quashed as bad in law....
The court held that in cases of search under Section 132, the provisions of Section 153A apply mandatorily, overriding Section 147 and 148, unless incriminating material is found.
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