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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
S.R.KRISHNA KUMAR
Sachin Narayan, S/o. Sri. H. G. Narayan – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
ORDER :
S.R.KRISHNA KUMAR, J.
1. In this petition, petitioner seeks quashing of the impugned Notices issued by the respondent to the petitioner for the assessment years 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18 under Section 153C of the Income Act, 1961 (for short ‘the I.T. Act’) and for other reliefs.
2. Heard learned counsel for the petitioner and learned counsel for the respondents – Revenue and perused the material on record.
3. A perusal of the material on record will indicate that, the respondents obtained a warrant of authorization dated 01.08.2017 under Section 132 of the I.T. Act and Rule 112 of the I.T. Rules in relation to one Sri D.K.ShivaKumar and in respect of residential premises of the petitioner at No. 902, 9th ‘A’ Cross, 6th Main, 2nd Stage, West of Chord Road, Rajaji Nagar, Bangalore. In pursuance of the same, the respondents conducted search in the aforesaid premises of the petitioner during the period from 02.08.2017 to 05.08.2017 and recorded the statement of the petitioner, pursuant to which, the 1st respondent prepared a satisfaction note recording reasons for initiating action against the petitioner under Section 153C of the I.T. Act, in pursuance
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....
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.
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....
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....
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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