Dinakara Suvarna Vs DCIT (Karnataka High Court)
The appeals before the Karnataka High Court concerned the validity of reassessment proceedings initiated under Section 147 of the Income-tax Act, 1961 for Assessment Years 2005-06, 2006-07 and 2007-08, and the addition made under Section 69B towards alleged unexplained investment in property.
The assessee, an individual engaged in contract works, had originally filed returns of income for the relevant assessment years. A search under Section 132 was conducted at the residential premises of Shri Ashok Kumar Chowta, during which a diary containing details of payments allegedly made to the assessee was seized. Subsequently, a survey was conducted at the assessee’s business premises, and his statement was recorded. The assessee agreed to offer 8% of additional receipts as income but did not file revised returns. Thereafter, the Assessing Officer issued notices under Section 148, completed reassessment proceedings, and made additions. The Commissioner (Appeals) partly allowed the appeals, following which both the assessee and the Revenue approached the ITAT. The Tribunal partly allowed the appeals and cross-objections and reversed the deletion of the addition under Section 69B for Assessment Year 2007-08.
Read SC Judgment in this case: Section 147 Reopening Invalid Where Section 153C Applies: SC
