Karnataka High Court cancels IT notices issued to actor Yash for six assessment years

The Karnataka High Court has quashed Income Tax notices issued to actor Yash under Section 153C, ruling that the notices were legally unsustainable.

In a significant ruling, the Karnataka High Court has set aside the Income Tax Department’s notices issued to actor Yash for six assessment years, ranging from 2013-14 to 2018-19, under Section 153C of the Income Tax Act. Justice S.R. Krishna Kumar delivered the order, providing major relief to the Sandalwood star.

The dispute began after the IT Department conducted a search in connection with investigations related to Hombale Constructions. As part of this inquiry, officials searched Yash’s residence in Hosakerehalli and a room he had rented at Taj West End. Following the 2021 search, authorities issued notices demanding information for six previous years.

Also Read:Smriti Mandhana returns to social media, engagement ring missing..Here’s the real story

Yash challenged the December 12, 2019 notice and the subsequent 2021 notices, arguing that the department had wrongly classified him as a “person not subjected to search.” His counsel pointed out that records were seized from his premises and a mahazar was drawn during the search, making it clear that he was indeed a searched person. Therefore, issuing notices under Section 153C, meant for individuals who were not searched, was legally incorrect.

The IT Department maintained that the search was targeted at Hombale Constructions and its associate Vijay Kumar, and that Yash was not the primary target. However, the court held that since searches were conducted at his residence and documents were collected, the department could not proceed under Section 153C.

Also Read:Bengaluru airport tops India’s baggage theft list, raising serious security concerns

After hearing both sides, the High Court concluded that the notices were issued in violation of procedure and hence could not stand. The court accordingly quashed all notices served to the actor under Section 153C for the six-year period.