Karnataka High Court
The Commissioner Of Income Tax vs T S Nagendra Prasad on 19 July, 2011
Bench: N.Kumar, Ravi Malimath
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T§'":E§ :"F&a§*~éG§ 3118 Q?" Zfififi is fiieé i.,EfS,2§§«.é 3? E,f':".Aci:, 1%: arising mg: ef mafia: dated O8-§é-2§;@=;S $35536 in 11133) E\.§a,:24f8a§':g,/2%§2 & £"E"'{$S§§ig;_V €*éa,:3;?/B/Zfim fix' me Eiaaias: fiassessmerst fi§?E%§ $3..-3$e:1;'f'~:_ 3,§§§ ta 23*§2~2BQ1, graying ta f@r*:*r:u%ate the $z,:__§;:Té¥t:1«3;":.*:V§-;;?:_E" % questigrsg af iaw statefi ihareén, am get agéde 'iL§'_3é ,@s:*§'1e;r"% T. ' passed by the mm' in m§s);a. No.124£Ba.ngz_2fi0'4..,: 8; mSS)A Nmi?/B/2094 & €0;':firs"§.r*:""i:E1-3 Qrfieg snag Apgeéiate Cammissécner as waii a3 :§fie* fizsisfiezéizbing; "£1"-.':ff%é:s:?._£f"
famurabée :9 the Revenue and set as%de5-- t§'zat p¥a..:ft'~Qf«.¥:?hs;'~.. "
awe: sf ?:§"£€ Agpefiate Csmmi§s%ér?ger whigfi is a<.g'a:j;f::~::_ 32%:
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ms 1"::.m©. 289 G? 2a{:s';-- -E.$<§g:'--f'§£e::;3d u2S',26@+§, 3? §,TmA€t; i§6i arising m_f;.a§ ggrfifi-_*&s"'~§'a_€éfi§_ :S=~»O§~2G@é fiassea in ET§ §\i3.2S9¥3;/Eangf2G£3'£§._V .f;érf f:"1&5'--.Ij_'%>_E£f;s€E< §3§SS&SSE"i'§€E"§f year :998*-99' .ps'ayé?ri§"V%:"'g.;# 'fekimué-ateVV" the subfita-aria; questisns of iai?w"'f¢.taieCi--_ t§*:es**eE:'$; 3n«f:§=3i.§.aw the appefafé anfi set agéde the é:,*sfdi;é.:t.';',r;a"::s;a;<j5' ..aby--._th~ev mg? in ETA ¥'=éG.2§94/Bartg/2084 6a7%:_eé.::.1",'§--94';';0GE';A.'icQ'fi*§E.rmEgg' the omer"
of the Appetiate _C9.m_rfi'é.$si5--::;5e,:i --a nd;_'<::;~r7z.f.é.sf.m5 tfie erder passed by the A:a;sistaAn£Vj£onémEséséaner cxf Encame Tax, Centra£ Circie, Myséflreg-' . ' " ' ' Thage :"?fig5, cefi'%'§r@ '+:}%2 "e'e%?' iaearirzg 'ms day, F4, i<%.§E'»'%;§;§,'3,, fivgzfiiegrézi the '§'?€:}v§§;{}§:_§{$f_E'§f?§i~ '«j:;:fiSME§§T Es Qféffifféé by the Raxzanue " A s%335§§'§§§ig';'«::_§g;"'?:§f3§ g:3r:§:3_%5'§as§e§ $3; the Trébagnaé canéaéiéag the fiffifif maéfi Lififiéf Chasigr KEEEWB fer aha '§>;~::.§*§,:§;rfé§ mm 1-4m:§§@ :3 2:.~2-2@31. rm "%;E"se ACE'). Therefare is: the eye 3? éaw there £3 as mturr: 33% aE§. "fhe third return that is fiiéd an §~3~2OS2 mowing' agreeé aengédergiierz recgéveé zmdar the agreemegaiti.@%4fs'§.ig *' ' dateé 2§,--§--1%97 was féiaé miy af:er:_t%°:e_-'§éér'%%';.'§%:a$..V cansizgcted an 2§~2»~ZQG: in whéah ;'§»,gea:'é?n'TVér§Qr%:*n§.%:ai':b§'g.. '<1.1' éacuménis ware seézéfi 5how§n§__ ft"s"2;@x :éfi€$i@§%t.:jf'».é§'Q§'@sa§*:§ cerzsiderafiégza Thereforg 'avers:V_§{§;'v§sg'é=s.._VL'ihé' "€--if'7i $;A§§"§f§ gafie canséderatéore sémwn in t%z;e""t!;{i;=d é--'§vtf;;';f.;.é4'E'§ §§'§<.:~3c;;Vsec6f as it is discicsgeé Qméy afte;fi t:h__§ se§:'a7'é*'C'7r:_} :§*:V.:a®:)V%:;ié""s.::..&;:::é:_:§' ;.;nd%3::£03ed income. As sui:";'§§ " %?§f§§_'f;j.§1E:1%C_iG:iE'V iltgf" assessment meaaedinga Search proceedings framing a$'$<V:e éVS s'r1:'§3.=H'§tQfiiér'--f0i'ét§ng the iiabiiéty is pay the cagitaé ilé:»:_' *§és§i'fl'.'._a"n§_"..'%~Eégaé am the Yrébunaé 25:33 _..::3A:aiEy ~§:z:; eT':':*0:" éw§9:"'---éVr2:_§grffe":§*i:":g wétiz tfie saifi arder. He '?t'::;_:"t§"f§;é;*._c',<::::%:e;*:§é:€___ that the agreement 3? gaie éateé V 21!5--»i§.@7:"a '.':;:;>§y?'¢f which wag Seizgfi fimring the gurvey <_:<; ndz,sa{e«: "$57; éiéégugt £0 September, 3%? m the firs: giace =. 'é{{.jvaz$$ <'3.;3§§r"'§ Xgrsx mpy arsé fig': the gegésnd masce the said 'a«§gr:e1':§§%":?e€2E am mi mntaifs 32% ségnaturag éf {ha SE,§§''£"I§°}8S&%'"S :
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and thevefere the same eéweuéd met have been ectee {seem It fie eniy when in the merge ef eeerch whee ieeg eeizzetée the éecuseentg game 'is mew abeuit Ceneéeeretien receivefi which wag net discéesee'~-..b§.r:.A_T.:tE%4e T eeseessee eariées' and tiaeeefeye the béeek eAe':s«eS$n"§e:':%:: 'e.::f;:'¥.;te";' __ eessefi wee éegei em vaéie and _:he 3"----:i.bur°;e% interfered with the saié erder.
E. Per ceetra, fiee E.é=-:%_erfne:§~..V"':~1E_e;:1:%.i;r mange:
agpeermg for the"e$}:.eSee5e. pr;-i.7ir'"g"9?;Ve£'i"Q.Ui:":%ia.§;f the agreement dated 21~5~1<_:3§7~::_§%:ee §uiy::'e'§<;ee;;§ut~ed"2}y"the essessee. The emeurzte ':;fuere.TA%9e¥::'eE.xze§e u*.r:{de.;f_ frhe agreement by way cf gay ereerfsg .SuE35e.qf;:Ve':24:ET'e'---._Q.:*:3y 11 seie deees were executedfi by we a1'5e_e§g:.see§'é~~;fiV femur 9? 11 eurcheeers whe V..--'e:fe t§1V_e5.::Q;%:§r2Vees"e§.§VE?§.»egreemeet heééere. War :9 eueh V"w.ee§:eihve a:§ees§eeVfemé$heeé a cam; ef the gaie deezis ie tee E'r'§a:.eé:;ee eT.e><._«%.deVe_e'§.i:::2emt fer ihe empese of gézzéng Ne Q§3_3'e5r::?;__i'eé': §e5r'%i§f%<fete zmcier geeiiee 239$, '3"E':e;*eferef it *»__§;e_;"me%: fie 'égeée ihai Mme eeie teeeseeiéee wee net iéieeieeee E
-31"
to $19 Segartmgrztn T§'§€f"€fQ?'€,, gréar :0 the gearséfi aéateg we iransaatisré was fiémggeé, Em cengiéeratiors §:'*:e:2tée;r1;s§*,_Tc:2l'T. in the saée @935 E3 §ESC§§Sed ans iherefare in cerzdufiteé' an 2%-2-29$: nothing was éE§{2§G$(fi:€i;--i%}_§§:§.§?%%:'A-fié..dA 1 been hiéden from the Separimerit.
21-S~3.9§7" gave ietai £0:":$ide§a?t%'$--r_'§ v§§:'§Vi:.?j §z:as imawiefige. 'fhe saie deeds ¢<:){3'i'té*sV:._V'.§k~s¥?1;§Vc§'§ 'a>z»'--s§A_%%e'V':g§%;§§3::VVVEG them ghaw that the and therafare wE1ateverA._t%:e%' _3'3.ag}g:... ""i:.*;:fir'i*:V:*7f,?g"V"the search cannat be <:<}ns1;ré_}{ve1g&t':A1:g#V:isi_'.2,:§{e;iAisi":_iéi.%e'§'§%°é§:5fise"'if0r the psgrpose at' initiation 0% Therefere, Ehfi Tribu:1::ai--. 'Setting aaéde tha entire §mCeeéin§§« faaéit with, aferesaéé facia arsé éhe révaé ' ce:2téri;'§i%er2$_ };«;»%é_;:~e%f amerges E3 {hat {ha aggegseeg W510 are awr:::%% $':. sf {Em afaregaid §§'G§€?i'"i'*;»" antarea me an is $35 the Samé 9:2 21~§~:9%? fa' mtgé '*-géngiiaeratéon G? §;S.1§§8;®8§é:?®@§~ they rgaeévefi wlém Ehfififi 'sézneé barred msmmg the Dasartmeséi ézaé iaitéaieé gxeceeéiragg under fieatéon 15:8 am in purguance affifge saié naiéee the return an S-3-2Q€32 wa§ féieé §isc§<::s§'r$EgE"-£§'%rL:--ea§'-. fuié <:3ns%derat%€3n refieivefi asrsder the agreemeizff V' assessee had met éisciageci the £352 gt-=::'r'2's%»::¥,er'a'_:E@:_f: ;5m?;§_ ohtéaz a mtéca amém Sectém 148 E3 é$5L§'e:-:§ '-.§fié¢s: f§Eé'£:. é:2.,ret'c:E§2., disfiosmg the gaié magma heV»E:~:v:,L:'L§E2":%bEe i<.:V._be--..é$_$és§§é'fi' én téw basis 3:? the said i"€v§T£J.!:;F§ an:5""E-gig j3§35'5€._ 3% Q'5t1"':" $39 EEK; éateresi and the CirmmsE§'r§;:_e:; :~:.eE::G:.%% L»':V.:1E§*_:*.;i§gé;*._.Se<:tie:": 2?}, is made east §§"(}'§;3§=T;g-§A;)£§Ev'};'-.._§'§G::A%é penaiiy. But when the Er:§'Q'$*'§_":f%§"%.%§'c§V'aV; :i§;ias.§_§ sf' whim béaak aasessmérnt fijéen initiatw was avaiéabie wétéx Ehe De7{3?a:_:€:T'seV%ét_ éQ;'e:*:.:':fi;.'?éi§2* is the S€aE'C§'§ {hey hafi 23$ _..§:§z"§§d§€."§:f?;§@Vr1f'~ E0 V"éir:-E.i:§a%:e_ bésck asgessmgat maseefizngs 'V.V!3%:e{:fiL53:@ fie: sat%SFy the éegai req:,:és'6me:'%i:$ $3 c:<):rs€tée r°;+g3Ei§i'E7ci§¥'§§»L«_a:t'%;fl§r Samar: 15883, "Wat is ;3E"€é:ES@§'y' wééai we "§"E:§%a:?"§z:3f:E "N153 Eaefé whéée seiizing gsifie we ardar :3? the §f:;L;';§"e»é§a;_t& VC§m:**s"§%$s%$r:ez° ag weéfi as Em asgesgigzg aigézharsiga ._;€%§'~?Vh'§'A$ai{§ aréer pagseé £3 giriitfy E52 aacazfiange with Egw >' <1//' 'E9 the aageéiaie CG§"§"§¥"§'%ESSEG§'"2S§' fér decédéng ma game SEE merétga Téaerfiaref the GE'§8§" gagged $3; the "§'r§§:3;§'F§.af dismissing the agpeaé against fieiétien of assessment carmai: be sustained, Hgnce, we"A«._;;§as$...1tL§:7efT» ' foiiewéng emery 8, The sasbstantiafi q:.:es'ELE'a',?>b ':7:§f Eaééz'-f§fé:Lrz§efi :§§n him appeaf am answfimd in fv3:§£'i:..sxsr :3;SS:;é"3S&€ arfi Hagams': the revenue, Canseqgzefstiy,. __ §}"£a-'"*~.v§€§°:§V.;ff,f3.fi"18/2385 fig dismissed. é 95 mag 'me.28§;=:é::2~r§:;«M,J,§éésmwed, "fhe order passeé by im "§f:;§;;.:"zaE ar.§ WéEi a$Tt§3e agpeiiafie wtheréty are :'V%:;eé?e'm{"'sc%:: 2":éfs§d:"e,_and matte: $3 ?e:';"séiEe$ baak is the a§gF e:§ai:'€z AC<fé;?w.§ffé1é§.fg%scs'r:e§* wiiéz 5 éérectésn ta regime iha " &Q§ea! "§='4é..Eeé,._ 'E2;% 3§h& §.'3SE§§€€ cizaéierzgéng the pmieaiive j,"g'g5;;é'SSE§fs§::*:"s;%§er 5535 $9 mqéde {fig game 9:': §'E"'§€E'§€S am in .:%§§§§f<2;>az$m 2."
M 17 W §C€§E'fi§E§€& 2az§%h Eaw aftar giving eppsréunéztéeg E@ be??? we géartiesv Pie mam . u VE£§%' V ~"._gw Rsk/M w_ __ _ -H \\ \ .
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