K.K. Mohandas Vs Union of India (Kerala High Court)
Kerala HC Dismisses Writ in 153C Case – Says Abhisar Buildwell Issue Can Be Raised in 260A Appeal, Not Article 226
The petitioner, aged 65, engaged in the hospitality business, challenged assessment & recovery proceedings arising from a search u/s 132 conducted in 2012. AO had completed the assessment for AY 2008–09 u/s 153C/143(3) & the matter had travelled through appellate stages, culminating in an ITAT order dated 04.08.2025. The petitioner approached the High Court claiming that the Tribunal & Department failed to apply the Supreme Court’s ruling in PCIT v. Abhisar Buildwell Pvt. Ltd. [(2023) 454 ITR 212 (SC)] & the corresponding CBDT Circular No. 1/2023 (dated 23.08.2023) which clarified that additions under section 153C are permissible only when based on incriminating material. He sought quashing of the assessment & recovery proceedings & directions to the Department to rectify the assessment in line with Abhisar Buildwell.
The Department, however, argued that the ITAT had already considered the Supreme Court judgment & found it inapplicable to the petitioner’s case, thus the issue could not be reopened through a writ petition.
The Court after examining the record, agreed with the Department. The Court observed that the ITAT had specifically referred to Abhisar Buildwell in its order & made a finding that it did not apply to the facts of this case. Since such findings could only be contested through an appeal u/s 260A before a Division Bench, the writ petition under Article 226 was not maintainable. Accordingly, the Court dismissed the writ petition without prejudice to the petitioner’s right to file a statutory appeal before the High Court u/s 260A.
