Karnataka High Court
The Pr. Commissioner Of Income-Tax vs M/S Chaitanya Properties Pvt Ltd on 28 January, 2025
Author: Krishna S Dixit
Bench: Krishna S Dixit
-1-
NC: 2025:KHC:3792-DB
ITA No. 465 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 28TH DAY OF JANUARY, 2025
PRESENT
THE HON'BLE MR JUSTICE KRISHNA S DIXIT
AND
THE HON'BLE MR JUSTICE G BASAVARAJA
INCOME TAX APPEAL NO. 465 OF 2022
BETWEEN:
1. THE PR. COMMISSIONER OF INCOME-TAX
CENTRAL CIRCLE, C R BUILDING,
3RD FLOOR, QUEENS ROAD, BENGALURU 560 001.
2. THE DEPUTY COMMISSIONER OF INCOME-TAX
CENTRAL CIRCLE 2(1), C R BUILDING,
3RD FLOOR, QUEENS ROAD, BENGALURU 560 001.
...APPELLANTS
(BY SRI.M DILIP.,ADVOCATE AND
SRI.Y V RAVIRAJ., ADVOCATE)
AND:
M/S CHAITANYA PROPERTIES PVT LTD
NO.17, SANKEY ROAD, BENGALURU 560 020.
Digitally signed PAN AAACC 5900A
by SHARADA
VANI B ...RESPONDENT
Location: HIGH (BY SRI. CHANDRASEKHAR V.,ADVOCATE)
COURT OF
KARNATAKA THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF
INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED
19/04/2022 PASSED IN ITA NO.496/BANG/2021, FOR THE
ASSESSMENT YEAR 2014-2015 PRAYING TO I. FORMULATE
THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND
II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED
BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN
ITA NO. 496/BANG/2021 DATED 19/04/2022 FOR
ASSESSMENT YEAR 2014-2015 ANNEXURE-C CONFIRMING THE
ORDER OF THE APPELLATE COMMISSIONER AND CONFIRMING
NC: 2025:KHC:3792-DB
THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF
INCOME TAX, CENTRAL CIRCLE-2(1), BENGLAURU AND ETC.,
THIS ITA, COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT
AND
HON'BLE MR JUSTICE G BASAVARAJA
ORAL JUDGEMENT
(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)
This Appeal by the Revenue calls in question the order
dated 19.04.2022 whereby the Income Tax Appellate
Tribunal has negatived Revenue's Appeal in ITA No.494-
497/BANG/2021 and thereby, has affirmed common order
dated 31.03.2021 for the Assessment Years 2011-12,
2012-13, 2013-14, 2014-15 & 2015-16.
2. The Revenue has framed the following
substantial questions of law:
"1. Whether, on the facts and in the
circumstances of the case and law, the Tribunal is
right in law in deleting the additions made by
assessing authority by holding that there are no
incriminating materials on which additions are
made ignoring that the incriminating materials
were found against assessee in search conducted in
case of M/s. Srinivasa Trust, KBD Sugars &
Distilleries which were seized and subsequently
satisfaction was recorded on 14/09.2018 in
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pursuance to the provisions of Section 153C of the
Act.
2. Whether, on the facts and in the
circumstances of the case and law, Tribunal and
CIT(A)'s orders can be said as perverse in holding
that additions made by assessing authority cannot
be sustained in law ignoring mandate of sections
153A and 153C of the Act?
3. Whether on the facts and in the
circumstances of the case, the Tribunal is right in
law deleting additions ignoring findings of the
assessing authority?"
3. Having heard the learned Panel Counsel for the
Revenue and Mr. Shankar learned Sr. Advocate appearing
for the Assessee, we decline indulgence in the matter
since the above questions of law do not arise for
consideration in view of what the Tribunal has observed at
Paragraph No.12 of the impugned order which reads as
under:
"12..... Admittedly, none of the additions made in
these 4 appeals are based on any incriminating
material found in the course of search in the case
of M/s. Srinivasa Trust on 23.09.2016. In such a
scenario, the additions made in the order of
Assessment cannot be sustained. As far as the
decision on the Hon'ble Karnataka High Court in the
case of Canara Housing Development Co. Ltd., 48
taxmann.com 98 (Karn.), the Hon'ble Karnataka
High Court in the decision rendered in the case of
M/s. Delhi International Airport Pvt. Ltd. ITA
No.322/2018 order dated 29.9.2021, wherein the
NC: 2025:KHC:3792-DB
law was explained that in an unabated assessments
completed prior to search, there can be no addition
in an Assessment under section 153C of the Act
without material having been found in the course of
search. The earlier decisions rendered by the
Hon'ble Karnataka High Court and other High
Courts were duly considered and there is no
dispute on this aspect and the fact that the said
decision is the law as of today on the subject
rendered by the Hon'ble Karnataka High Court."
Despite turning the Appeal papers, nothing is
demonstrated as to how the above observations of the
Tribunal can be faltered.
In the above circumstances, this Appeal being
unworthy of merits, dismissed at the stage of Admission,
costs having been made easy.
Sd/-
(KRISHNA S DIXIT)
JUDGE
Sd/-
(G BASAVARAJA)
JUDGE
Bsv
