Income Tax Raid, No proceedings can be initiated under Prevention of Corruption Act in absence of Material evidence: Karnataka HC [Read More]

The Karnataka High Court has ruled that proceedings cannot be initiated under the Prevention of Corruption Act without substantial evidence, overturning a case based on an income tax raid lacking material evidence. \r

The court responded to a petition under Articles 226 and 227 of the Constitution, challenging FIR and charge sheet proceedings against the petitioner under Sections 13(1)(d), 13(1)(e) read with 13(2) of the PC Act. It was alleged the petitioner, a former Assistant Engineer, accumulated wealth through undisclosed sources, prompting action by the ACB post an income tax raid. \r

The court found the income tax report insufficient, lacking detailed asset information or a nexus to benami properties, and emphasized the IT department's role limited to tax verification, not criminal charges. The division bench, Justice K Natarajan and T N Chikkarayappa, consequently quashed the proceedings.