High Court of Karnataka · Judgments and reasoned final orders
Principal Commissioner of Income Tax & Anr. v. Shri Ramesh Ramachandra Rao
Income Tax Appeal No. 69 of 2024 ·
Deletion of addition in a Section 153C assessment for unabated AY 2011-12 where no incriminating material pertaining to the assessee was found during the search of M/s R.R. Gold Palace Pvt. Ltd.
1. FACTS OF THE CASE
Following a search under Section 132 in the case of M/s R.R. Gold Palace Pvt. Ltd., proceedings under Section 153C were initiated against the respondent-assessee for AY 2011-12. The ITAT deleted the additions on the ground that no incriminating material pertaining to the assessee for AY 2011-12 was unearthed during the search.
2. DISCUSSION BY THE COURT
The Division Bench held that the issue is squarely covered by the coordinate bench decision in CIT v. IBC Knowledge Park Pvt. Ltd. (2016) 385 ITR 346 (Kar) and the Supreme Court decision in PCIT v. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). In the absence of any incriminating material unearthed during the search relating to the completed assessment for AY 2011-12, the AO lacked jurisdiction to make additions under Section 153C.
3. JUDICIAL DECISION
Answering the substantial questions of law in favour of the assessee and against the Revenue, the High Court dismissed the appeal.
4. OUTCOME
Assessee - Revenue appeal dismissed; ITAT order quashing Section 153C additions affirmed.
5. AKHB REVIEW POINT
Both under Section 153A and Section 153C, unabated assessments cannot be disturbed unless seized incriminating material specifically implicating that assessment year is found during the search.
Source and verification
6-page official High Court of Karnataka judgment PDF (20260129_KAHC010059082024.pdf, 79,826 bytes).
Original PDF: 6 pages · SHA-256: cb1ce4c12db04a6957c13188c8be8e847e5024e959ce8e708feba21e293a6313
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Sections 132, 153A, and 153C of the Income-tax Act, 1961 for AY 2011-12. Income-tax Act, 2025 equivalence is not verified.
Full 6-page primary judgment PDF text read and verified page-by-page. Follows CIT v. IBC Knowledge Park Pvt. Ltd. (2016) 385 ITR 346 (Kar) and PCIT v. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC).
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