PCIT Vs Gokula Education Foundation (Medical) (Karnataka High Court)
In PCIT vs Gokula Education Foundation, the Karnataka High Court reviewed appeals concerning reassessments under Section 153A of the Income Tax Act for the assessment years 2011-12, 2012-13, and 2013-14. The key issue was whether the Income Tax Appellate Tribunal’s decision to delete assessed income was justified. The Revenue challenged the Tribunal’s ruling, arguing that reassessment under Section 153A requires evaluating all prior additions. However, the High Court, referencing a Supreme Court decision in Principal Commissioner of Income-tax, Central-3 v. Abhisar Buildwell (P) Ltd., found that reassessment under Section 153A is impermissible without incriminating evidence. The court confirmed that the Tribunal’s deletion of income was appropriate, as there was no new evidence to justify the reassessment. Consequently, the High Court upheld the Tribunal’s decision, dismissing the appeals by the Revenue and affirming the deletion of the assessed income.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
These appeals by the Revenue, under Section 260-A of the Income Tax Act, 1961, are against the orders dated 18.07.2022 passed by the Income Tax Appellate Tribunal, Bengaluru in ITA No.499/Bang/2021 for the Assessment Year 2011-12 (Annexure-C), in ITA No.500/Bang/2021 for the Assessment Year 2012-13 (Annexure-C) and in ITA No.501/Bang/2021 for the Assessment Year 2013-14 (Annexure-C) respectively, confirming the orders passed by the Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru, in respect of the Assessment Years 2011-12, 201213 and 2013-14 respectively relating to the respondent – assessee.
