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THE HIGH COURT OF KARNATAKA
S.R.KRISHNA KUMAR
SRI. C. R. RAM MOHAN RAJU – Appellant
Versus
THE DEPUTY COMMISSIONER OF INCOME TAX – Respondent
| Table of Content |
|---|
| 1. petition for quashing income tax notices. (Para 1 , 3) |
| 2. court's observations on procedural fairness. (Para 2 , 6 , 7) |
| 3. arguments on applicability of section 153c. (Para 4 , 5) |
| 4. conclusion of quashing invalid notices. (Para 10 , 14 , 15) |
| 5. definition and requirements for invoking section 153c. (Para 12) |
ORDER :
S.R.KRISHNA KUMAR, J.
In this petition, petitioner seeks quashing of the impugned Notices issued by the 1st respondent to the petitioner for the assessment years 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 under Section 153C of the Income Act, 1961 (for short ‘the I.T.Act’) and for other reliefs.
2. Heard learned Senior 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 on12.09.2017, the respondents obtained a warrant of authorization under Section 132 of the I.T.Act and Rule 112 of the I.T.Rules in relation to one K.Narayana Raju and in respect of residential premises of the petitioner at No.24, Lakshmi Nivas, 4th cross Road, K.R.Layout, J.P.Nagar, 6th phase, Bangalore. In pursuance of the same, the respondents
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....
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 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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