Ita v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE: DAY OF JULY 2014 PRESENT THE HON’BLE MR.JUSTICEK N.KUMAR ANT) THE HON’BLE MR.JUSTICE B. MANOHAR INCOME TAX APPEAL NO.72322 OF 2O BBRITWRE SMT. NAGARATHNA|D/O. LATE SRI KRISHNA REDDYNO.993/1, 2 CROSS,1 MAIN, |NEW TIPPASANDRA,BANGALORE — 560 075._ APPBRLLANT(| (BY SRI A. SHANKAR AND SRI M. LAVA, ADVS.) AND: THE ASSISTANT COMMISSIONER OF INCOME-TAX,CENTRAL CIRCLE —- 1(3),C.R. BUILDING, QUEEN’S ROAD,BANGALORE — 560 OO1._ RESPONDENT (BY SRI K.V. ARAVIND, ADV.) THIS ITA FILED UNDER SECTION 260-A OF LT. ACT,1961 ARISING OUI OF ORDER DATED 29-02-2008|PASSEDIN-IT(SS)A138/BANG/2004KORTHEASSESSMENT YEAR 1989-90 & 2000-2001, PRAYING THAT|THIS HON’BLE COURT MAY BEB PLEASED TO: 1.FORMULATE THE SUBSTANTIAL QUESTIONS OFLAW STATED THEREIN,LAW STATED THEREIN, 11.ALLOW THERE APPEAL AND SEIT ASIDE THE ORDPASSED.BY|THERITAT,|PASSEDINIT(SS)A138/BANG/2004DATHD.29-02-2008,IN-THE.INTEREST OF JUSTICE AND EQUITY.PASSED.BY|THERITAT,|PASSEDINIT(SS)A138/BANG/2004DATHD.29-02-2008,IN-THE.INTEREST OF JUSTICE AND EQUITY. THIS APPEAL COMING ON FOR ADMISSION THIS.DAY,N. KUMAR J., DELIVERED THE FOLLOWING: JU DBGMENT The assessee is not assessed to income tax for|any year. When the search was made in theirpremises, the undisclosed income representing the rent.from two flats, amounting to Rs./78,Q000/-, was seized.It was within the taxable hmit. This aspect has been)completely ignored and not noticed by the authoritiesand the impugned orders came to be passed. 2. When the assessee was not assessed to income tax and the so-called undisclosed income is less than.the taxable limit, the entire exercise done by the.authorities is unjustified and contrary to law. In that view of the matter, on that short ground, the.impugned orders are liable to be set aside. Hence, we.have not gone into the substantial question of lawframed in this case at the time of admission, as they do. not arise. Accordingly, the appeal is allowed. The impugnedorders are set aside. Parties to bear their own costs. KNM/-| Sd/-| JUDGE Sd/- JUDGE