THE PR COMMISSIONER OF INCOME TAX vs. SRI M G ANAND REDDY

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ITA/102/2023HC KarnatakaKAHC01012746202318 July 2023Bench: P.S.DINESH KUMAR,T.G. SHIVASHANKARE GOWDA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that the issues were covered by a Supreme Court decision in favor of the assessee. Consequently, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue appealed against an ITAT order that quashed an assessment order passed under Section 143(3) read with Section 153A of the Income Tax Act. The ITAT had held that the assessment order was passed in the absence of incriminating materials.

What were the issues?

Whether an assessment order under Section 153A can be passed without incriminating materials, and if the ITAT's order was perverse.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

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NC: 2023:KHC:25014-DB ITA No. 102 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JULY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE T.G. SHIVASHANKARE GOWDA INCOME TAX APPEAL NO. 102 OF 2023 BETWEEN: 1. THE PR COMMISSIONER OF INCOME TAX CENTRAL, 3RD FLOOR, C R BUILDING QUEENS ROAD, BENGALURU - 560 001 2. THE ASST. COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE - 2(1) , PRESENT ADDRESS DCIT

CENTRAL CIRCLE - 1(4), 3RD FLOOR C R BUILDING QUEENS ROAD, BENGALURU - 560 001 …APPELLANTS (BY SRI. DILIP M., STANDING COUNSEL) AND: SRI M G ANAND REDDY SY NO 46/1 AND 46/2, YADAVANAHALLI VILLAGE, ANEKAL TALUK, ATTIEBLE HOBLI, BENGALURU -562107 PAN AARPA 3047J …RESPONDENT (BY SRI. SHANKAR A. SR. ADV. FOR SRI.MADHUSUDHAN U A.,ADV.)

THIS ITA IS FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN ITA NO.756/BANG/2021 DATED 20.09.2022 FOR ASSESSMENT YEAR 2009-2010 ANNEXURE-C AND CONFIRM THE ORDER OF THE PPELLATE COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, ENTRAL CIRCLE - 1(4), BENGALURU. Digitally signed by MALA K N Location: HIGH COURT OF KARNATAKA

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NC: 2023:KHC:25014-DB ITA No. 102 of 2023

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, P.S.DINESH KUMAR, J., DELIVERED THE FOLLOWING: JUDGMENT This appeal by the Revenue under Section 260(A) of the Income Tax Act, 19611 against the order passed by the I.T.A.T.2, Bengaluru in I.T.A. No.756/Bang/2021 dated 20.09.2022 is filed to consider the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in quashing assessment order passed under section 143(3) r/w/s 153A of the Act by holding that the said orders are passed in the absence of incriminating materials ignoring that there is no requirement of incriminating materials to pass assessment order under said section as same is not stipulated in Section 153A nor under Section 132 of the Act?” 1 the 'Act' for short 2 Income-tax Appellate Tribunal

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NC: 2023:KHC:25014-DB ITA No. 102 of 2023 2. Whether on the facts and circumstances of the case and in law, the Tribunal's order can be said as perverse in law in quashing assessment order passed under section 143(3) r/w/s 153A of the Act ignoring object of Section 153A of the Act which stipulates that once search takes place all pending assessments are abated and assessing authority is required to assessment order under Section 153A of the Act ?.” 2. Heard Shri.M.Dilip, learned Standing Counsel for the Revenue and Shri.A.Shankar, learned Senior Advocate for the assessee. 3. Shri.A.Shankar, submits that the issues involved in this appeal are covered by the decision of Hon'ble Apex Court in favour of the assessee in Principal Commissioner of Income-tax, Central-3 -vs- Abhisar Buildwell (P.) Ltd.3 on 24.04.2023. The said submission is not disputed by Shri.M.Dilip. 3 [2023] 149 taxmann.com 399 (SC)

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NC: 2023:KHC:25014-DB ITA No. 102 of 2023 4. In view of the above, this appeal is dismissed. 5. Both the questions are answered in favour of the assessee and against the Revenue. 6. In view of the dismissal of the appeal, I.A.No.1/2023 does not survive for consideration and it is accordingly dismissed. No costs.

Sd/- JUDGE Sd/- JUDGE PA CT:HS List No.: 1 Sl No.: 3

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