SRI LOTUS CHICK FOODS PRIVATE LIMITED,TUMKUR vs. ACIT, CENTRAL CIRCLE-1(2), BANGALORE

ITA 68/BANG/2026Status: DisposedITAT Bangalore10 September 2026AY 2015-1615 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment under section 153C is unsustainable in the absence of any incriminating material found during the search. Following the Supreme Court's decision in Abhisar Buildwell (P.) Ltd., the disallowance of farm maintenance expenses was deleted.

What were the facts?

The assessee's appeals were against assessment orders passed under section 153C of the Income Tax Act for assessment years 2014-15 to 2018-19. The additions were made based on a search conducted in the premises of a related entity, M/s Lotus Farms, and Mr. Damodar Reddy.

What were the issues?

Whether the assessment under section 153C is valid without incriminating material found during a search. Whether farm maintenance expenses can be disallowed without cogent evidence.

Which sections of the Income-tax Act were involved?

Section 153C,Section 132,Section 143(1),Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI WASEEM AHMED & SHRI SANDEEP SINGH KARHAIL

PER BENCH: The assessee has filed the present appeals against the common impugned order dated 12.11.2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Principal Commissioner of Income Tax (Appeals) – 11, Bengaluru [“learned PCIT(A)”], which in turn arose from 1

ITA 67 - 71/BANG/2026 SRI. LOTUS CHI

The order continues below.

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