- 1 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 02ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.5607 OF 2025 (T-IT) BETWEEN: SMT. LAKSHMI MADURI PUTCHA W/O. MR. P.V.N. VIJAYA KUMAR AGED ABOUT 51 YEARS, R/AT NO.15, 3RD FLOOR, DWARAKAMAYI APARTMENT, RAILWAY MENS COLONY, R.M.V. 2ND STAGE, BENGALURU - 560 094. …PETITIONER (BY SRI. M.V. SESHACHALA, SENIOR ADVOCATE FOR SRI. NAGHARISH G.S., ADVOCATE) AND: 1. ASSESSMENT UNIT, FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI - 110 001, REP. BY THE ASSESSING OFFICER. 2. NATIONAL FACELESS ASSESSMENT CENTRE, NO.412-413, I FLOOR, OPP. METRO PILLAR NO.793 DWARKA MOR, NEW DELHI - 110 059. REP. BY ASSESSING OFFICER. 3. INCOME TAX OFFICER, WARD-6(3)(1), 80 FEET ROAD, BMTC BUILDING, KORAMANGALA, BENGALURU - 560 095. Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX-6, 80 FEET ROAD, BMTC BUILDING, KORAMANGALA, BENGALURU - 560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE PENALTY ORDER PASSED UNDER SECTION 271(1)(c) OF THE INCOME TAX ACT DATED 17.09.2024, BEARING NO.ITBA/PNL/F/271(1)(c)/2024-25/1068794932(1) VIDE ANNEXURE-E, DEMAND NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT BEARING NO.ITBA/PNL/S/156/2024-25/1068793598(1) DATED 17.09.2024 VIDE ANNEXURE-E2 PASSED BY THE RESPONDENT NO.3; ASSESSMENT ORDER DATED 20.03.2024 BEARING NO.ITBA/AST/S/147/2023-24/1062968272(1) VIDE ANNEXURE-D AND DEMAND NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT BEARING NO.ITBA/AST/S/156/2023- 24/1062968274(1) DATED 20.03.2024 VIDE ANNEXURE-D2 PASSED BY THE RESPONDENT NO.3 FOR THE ASSESSMENT YEAR 2016- 17; AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner has sought for the following reliefs: a) Issue a Writ of certiorari to quash the penalty order u/s. 271(1)(c) of the IT Act dated 17.09.2024 bearing No.ITBA/PNL/F/271(1)(c)/2024-25/1068794932(1) vide Annexure-E, demand notice u/s. 156 of the IT Act bearing No.ITBA/PNL/S/156/2024-25/1068793598(1) dated 17.09.2024 vide Annexure-E2 passed by the third - 3 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 respondent; assessment order dated 20.03.2024 bearing No.ITBA/AST/S/147/2023-24/1062968272(1) vide Annexure-D and demand notice u/s. 156 of the IT Act bearing No.ITBA/AST/S/156/2023-24/1062968274(1) dated 20.03.2024 vide Annexure-D2 passed by third respondent for Assessment year 2016-17; b) Permit the petitioner to file return of income for A.Y.2016- 17 in response to notice u/s.148 of the IT Act; c) Issue such other writ or direction as this Hon'ble Court deem fit to grant in facts and circumstances of the present case." 2. Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned Senior Counsel for the petitioner invites my attention to the impugned assessment order at Annexure–D dated 20.03.2024 in particular to paragraph 5 in order to point out that though the assessment order states that notice was issued to the petitioner, petitioner actually did not receive the same, since it was not served on the actual address of the petitioner but was served - 4 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 on the address that appeared on the Sale Deed of the Apartment that was bought by the petitioner. 4. It is submitted that the inability and omission on the part of the petitioner to submit his reply along with the documents to the aforesaid notice was due to bonafide reasons, unavoidable circumstances and sufficient cause. It is therefore contended that the impugned assessment order is an ex-parte order without providing sufficient or reasonable opportunity to the petitioner and is thereby violative of principles of natural justice and the same deserves to be set aside and the matter remitted back to the respondents for reconsideration afresh in accordance with law by providing one more opportunity to the petitioner to submit his reply along with the documents. 5. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 6. A perusal of the material on record will indicate that the notice dated 10.03.2023 issued by the respondents under Section 148A(b) of the I.T. Act has not been duly served / communicated to - 5 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 the petitioner and in the absence of the petitioner being duly served in as much as the same, having not been delivered to actual address available in the IT returns produced by the petitioner, I am of the view that the impugned ex-parte assessment order, which proceeds on the basis that no reply was submitted by the petitioner is clearly erroneous and arbitrary and the same deserves to be set aside. 7. 7. Further, in view of the specific assertion on the part of the petitioner that if one more opportunity is provided to the petitioner to file / submit his returns as well as a detailed reply along with relevant documents to the respondents, I deem it just and appropriate to set aside the impugned assessment and remit the matter back to the respondents for reconsideration afresh in accordance with law. 8. In the result, I pass the following: ORDER (i) Petition is hereby allowed; (ii) The impugned assessment order at Annexure-D dated 20.03.2024 and penalty order at Annexure-E dated 17.09.2024 are hereby set aside; - 6 - NC: 2025:KHC:13720 WP NO.5607 OF 2025 (iii) The matter is remitted back to the respondents for reconsideration afresh in accordance with law from the stage petitioner filing return to the notice issued under Section 148 of the Income Tax Act, 1961; (iv) Liberty is hereby reserved in favour of the petitioner to file returns to the Notice dated 24.03.2023 (Annexure-C) issued by the respondents under Section 148 of the I.T. Act and to proceed further and pass appropriate orders in accordance with law; (v) It is made clear that the present order is passed in the peculiar / special facts and circumstances of the instant case and shall not be treated as a precedent nor have any precedential value for any purpose whatsoever. SD/- (S.R.KRISHNA KUMAR) JUDGE ARK List No.: 1 Sl No.: 10