Singe Gowda Rathna Ravi Vs ACIT (Karnataka High Court)
“Wrong Section” Is No Shield Against a Rightful Demand: Karnataka HC Directs Compliance With Notice u/s 142(1) Read With Sections 158BC & 158BD
Summary: The Karnataka High Court considered a writ petition challenging notices issued under Section 142(1) of the Income Tax Act, 1961, calling for accounts and documents following a search. The Court’s substantive discussion refers to the first notice as dated 10.04.2026 and the subsequent notice as dated 20.05.2026, while the prayer portion of the petition reproduced in the order describes the first notice as dated 10.04.2025.
The search proceedings were already the subject matter of W.P. No.4850/2025 [T-IT] and connected matters. The petitioner challenged the authority to call for further documents, contending that once search-related proceedings were pending, further requisition of documents should be under Section 153C. The petitioner also alleged that the notice pre-determined a disallowance by proceeding on the premise that it represented undisclosed income for the block period between 01.04.2018 and 13.01.2025.
The Revenue submitted that the communication was not a notice simplicitor under Section 142(1), but had to be read with Sections 158BC and 158BD governing the block period. It also denied that the notice reflected any pre-determination.
