CIT v. IBC Knowledge Park (P.) Ltd.

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Constructions Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…roceedings u/s 153C in the case of the Assessee Company, is not in conformity with the provisions of the Act and fails the test of law and hence the entire proceeding u/s 153C of the Act is void ab initio. 13. In the case of CIT vs IBC Knowledge Park (P) Ltd 385 ITR 346, the Jurisdictional Karnataka High Court held as under:- “55. If the observations made by the Tribunal are considered in this regard, it is noted by the Tribunal that it is not necessary that satisfaction should be recorded that documents or valuable assets found in the course of search showed undisclosed income. In view of the aforesaid discuss…

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Construction Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…roceedings u/s 153C in the case of the Assessee Company, is not in conformity with the provisions of the Act and fails the test of law and hence the entire proceeding u/s 153C of the Act is void ab initio. 13. In the case of CIT vs IBC Knowledge Park (P) Ltd 385 ITR 346, the Jurisdictional Karnataka High Court held as under:- “55. If the observations made by the Tribunal are considered in this regard, it is noted by the Tribunal that it is not necessary that satisfaction should be recorded that documents or valuable assets found in the course of search showed undisclosed income. In view of the aforesaid discuss…

Assistant Commissioner of Income Tax Central Circle-2(3), Bangalore vs. M/S Conc Shade Construction Pvt Ltd, Chikkamangalur

In the result, all the appeals by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…roceedings u/s 153C in the case of the Assessee Company, is not in conformity with the provisions of the Act and fails the test of law and hence the entire proceeding u/s 153C of the Act is void ab initio. 13. In the case of CIT vs IBC Knowledge Park (P) Ltd 385 ITR 346, the Jurisdictional Karnataka High Court held as under:- “55. If the observations made by the Tribunal are considered in this regard, it is noted by the Tribunal that it is not necessary that satisfaction should be recorded that documents or valuable assets found in the course of search showed undisclosed income. In view of the aforesaid discuss…

Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore vs. M/S. Chaitanya Properties Private Limited, Bengaluru

In the result, the appeals by the Revenue are dismissed

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

…w.s. 147 / 143(3) r.w.s. 153A/153C of the Act earlier to the date of initiation of proceedings under section 153C of the Act. The CIT(A) referred to the decision the Hon'ble High Court of Karnataka in the case of CIT Vs IBC Knowledge Park [P] Ltd. reported in 384 ITR 346, wherein it was held that “where no material belonging to a third party is found during a search, but only an inference of an undisclosed income is drawn during the course of enquiry, during search or during post-search enquiry, Section 153C of the Act would have no application. Thus, the detection of incriminating material leading to an inferenc…

Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore vs. M/S. Chaitanya Properties Private Limited, Bangalore

In the result, the appeals by the Revenue are dismissed

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

…w.s. 147 / 143(3) r.w.s. 153A/153C of the Act earlier to the date of initiation of proceedings under section 153C of the Act. The CIT(A) referred to the decision the Hon'ble High Court of Karnataka in the case of CIT Vs IBC Knowledge Park [P] Ltd. reported in 384 ITR 346, wherein it was held that “where no material belonging to a third party is found during a search, but only an inference of an undisclosed income is drawn during the course of enquiry, during search or during post-search enquiry, Section 153C of the Act would have no application. Thus, the detection of incriminating material leading to an inferenc…

Deputy Commissioner of Income Tax, Central Circle-2(1), Bengaluru vs. M/S. Chaitanya Properties Private Limited, Bengaluru

In the result, the appeals by the Revenue are dismissed

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

…w.s. 147 / 143(3) r.w.s. 153A/153C of the Act earlier to the date of initiation of proceedings under section 153C of the Act. The CIT(A) referred to the decision the Hon'ble High Court of Karnataka in the case of CIT Vs IBC Knowledge Park [P] Ltd. reported in 384 ITR 346, wherein it was held that “where no material belonging to a third party is found during a search, but only an inference of an undisclosed income is drawn during the course of enquiry, during search or during post-search enquiry, Section 153C of the Act would have no application. Thus, the detection of incriminating material leading to an inferenc…

Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore vs. M/S. Chaitanya Properties Private Limited, Bengaluru

In the result, the appeals by the Revenue are dismissed

Bench: Shri N. V. Vasudevan & Ms. S. Padmavathy

…w.s. 147 / 143(3) r.w.s. 153A/153C of the Act earlier to the date of initiation of proceedings under section 153C of the Act. The CIT(A) referred to the decision the Hon'ble High Court of Karnataka in the case of CIT Vs IBC Knowledge Park [P] Ltd. reported in 384 ITR 346, wherein it was held that “where no material belonging to a third party is found during a search, but only an inference of an undisclosed income is drawn during the course of enquiry, during search or during post-search enquiry, Section 153C of the Act would have no application. Thus, the detection of incriminating material leading to an inferenc…

Late Smt.K.Leelavathy, by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this ITA Nos.752 to 755/Bang/2019 Page 20 of 79 issue, the High Court came to the conclusion at para 50 thereof, that “the…

Late Smt.K.Leelavathy by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this ITA Nos.752 to 755/Bang/2019 Page 20 of 79 issue, the High Court came to the conclusion at para 50 thereof, that “the…

Late Smt.K>Leelavathy by L/R Shri.M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this ITA Nos.752 to 755/Bang/2019 Page 20 of 79 issue, the High Court came to the conclusion at para 50 thereof, that “the…

Late Smt.K.Leelavathy by L/R Shri M.Thimmegowda, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(3), Bangalore

In the result, all the appeals by the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this ITA Nos.752 to 755/Bang/2019 Page 20 of 79 issue, the High Court came to the conclusion at para 50 thereof, that “the…

Assistant Commissioner of Income Tax Circle - 2(3), Bangaluru vs. Shri T.H Suresh Babu, Bellary

In the result, the appeal by the revenue is dismissed

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2010-11

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment year: 2010-11 The Assistant Commissioner of Vs. Shri T H Suresh Babu, Income-Tax, Laxmi Narasimha Nilaya, Central Circle-2(3), Near Railway Quarters, Bangalore. Bamboo Bazaar, Siraguppa Road, Bellary. PAN: BNYPS 1706D APPELLANT RESPONDENT Appellant by : Shri Priyadarshi Mishra, Addl. CIT(DR)(ITAT), Bengaluru. Respondent by : Shri Sivaprasad Reddy, ITP Date of hearing : 04.03.2022 Date of Pronouncement : 06.04.2022 O R D E R Per Chandra Poojari, Accountant…

DCIT, Bangalore vs. M/S Ind- Sing Developers (P) Ltd., Bangalore

In the result, the appeal filed by the assessee is allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Jm

…assertion of the learned AR that additions are not based on incriminating material. 5.2 We have heard rival submissions and perused the material on record. The Hon’ble Karnataka High Court in the case of IBC Knowledge Park Private Limited v. CIT reported in 385 ITR 346 had held that unless in the material seized during the course of search show undisclosed income and are incriminating in nature, jurisdiction u/s 153C of the Act cannot be assumed. The ratio of the above decision would apply to section 153A of the Act also. The latest judgment of the Hon’ble jurisdictional High Court in the case of Pr.CIT v. M/s.…

M/S Ind Sing Developers Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is allowed

Bench: Shri George George K, Jm & Ms.Padmavathy S, Jm

…assertion of the learned AR that additions are not based on incriminating material. 5.2 We have heard rival submissions and perused the material on record. The Hon’ble Karnataka High Court in the case of IBC Knowledge Park Private Limited v. CIT reported in 385 ITR 346 had held that unless in the material seized during the course of search show undisclosed income and are incriminating in nature, jurisdiction u/s 153C of the Act cannot be assumed. The ratio of the above decision would apply to section 153A of the Act also. The latest judgment of the Hon’ble jurisdictional High Court in the case of Pr.CIT v. M/s.…

Sri S.R. Ravishankar, Bangalore vs. Principal Commissioner of Income Tax (Central), Bangalore

In the result, the appeal is allowed

Bench: Shri N.V. Vasudevan & Shri B. R. Baskaranassessment Year :2011-12 Shri.S. R. Ravishankar, Vs. Pr. Commissioner Of Income Tax No.80, 1St Main, Between 3Rd & 4Th (Central), Cross, Chamrajpet, Bengaluru. Bengaluru – 560 018. Pan : Aclpr 5363 C Appellant Respondent Assessee By : Shri. S. Ramasubramanian, Ca Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 15.02.2022 Date Of Pronouncement : 22.02.2022 O R D E R

…ents, any addition can be made only on the basis of incriminating material in an assessment u/s 153A of the Act. It has been so held in the following decisions: a) CIT v. Sinhgad Technical Education Society 397 ITR 344 (SC) b) CIT Vs IBC Knowledge Park P. Ltd 385 ITR 346 (Kar) c) ACIT Vs Cornerstone Properties Pvt Ltd (ITA No. 1714 to 1717/Bang/2013) d) CIT Vs Kabul Chawla 380 ITR 573 (Del) e) Sree Lakshmi Venkateshwara Minerals v. DCIT 186 ITD 695 (Bang) (Para 31) 9. The Hon’ble Karnataka High Court in the case of Canara Housing Development Co., (2014) 49 taxmann.com 98 in a case relating to proceedings under s…

Shri D.Dasappa, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this issue, the High Court came to the conclusion at para 50 thereof, that “the detection of seized material leading to an i…

Shri D.Dasappa, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

…to search. For arriving at such a satisfaction, it is necessary for the AO to prima facie spell out the nature of seized documents and how it belongs to or relates to the assessee. Before the Hon’ble High Court of Karnataka in the case of IBC Knowledge Park, 385 ITR 346 [Kar] the issue for consideration and adjudication was whether the Tribunal was right in holding that it was not necessary to record a satisfaction to the effect that seized material shows undisclosed income. While deciding this issue, the High Court came to the conclusion at para 50 thereof, that “the detection of seized material leading to an i…

Rajesh Nagaraja Rao Jagdale, Bengaluru vs. Principal Commissioner of Income Tax (Central), Bangalore

In the result appeal filed by the assessee stands dismissed

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2016-17 Shri Rajesh Nagaraja Rao Jagdale, The Principal 39/23, Sumeru, Commissioner of 29th Cross, 7th Block, Income-tax, Jayanagar, (Central), Bangalore – 560070. Vs. Bangalore. PAN: AEJPJ9235K APPELLANT RESPONDENT Assessee by : Shri L. Bharath, CA : Shri Sumer Singh Meena, CIT Revenue by DR (OSD) Date of Hearing : 23-12-2021 Date of Pronouncement : 31-01-2022 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal is filed by assessee against order da…