Damodhar Devarashetti vs. Dy. CIT

Parties Involved

Facts Summary

The assessee, Shri Damodhar Devarashetti, filed his income return for the Assessment Year 2020-21 on 10.10.2020, declaring a total income of Rs. 5,66,160/-. A search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted on 23.03.2021 in the case of Spectra Group of Companies. During the search, an Agreement of Sale dated 31.12.2019 was found and seized from the premises of the said Group. Based on this document, a satisfaction note was recorded by the Assessing Officer for initiation of proceedings under section 153C of the Act. A notice under section 153C was issued to the assessee on 21.07.2023. The assessee filed his return on 26.11.2024, declaring the same total income. An addition of Rs. 2,38,200/- was made under section 69A of the Act, and the assessment was completed under section 153C of the Act, determining the total income at Rs. 8,04,360/-. The assessee appealed against the assessment order, challenging the validity of the initiation of proceedings under section 153C of the Act.…

Legal Issues

• 1. Validity of initiation of proceedings under section 153C of the Act
• 2. Assessment framed under section 153C of the Act

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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