- 1 - NC: 2025:KHC:9568 WP No. 5633 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.5633 OF 2025 (T-IT) BETWEEN: MR. RAJ PATEL, AGED 60 YEARS (SENIOR CITIZEN'S BENEFIT NOT CLAIMED) SON OF LATE. BABULAL PATEL RESIDING AT 9, PARK RAOD, TASKER TOWN, SHIVAJI NAGAR, BENGALURU - 560 051. …PETITIONER (BY SRI. SANDEE PANI A. NEGLUR, ADVOCATE FOR SRI. SANDEEP HUILGOL., ADVOCATE) AND: 1. ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. 2. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL E-ASSESSMENT/ NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM NEW DELHI - 11003. 3. INCOME-TAX OFFICER, WARD 1(1)(1), BANGALORE, BMTC BUILDING, Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:9568 WP No. 5633 of 2025 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU - 560 095. 4. PRINCIPAL COMMISSIONER OF INCOME-TAX 1, BENGALURU, C R BUILDING, NO. 1, QUEEN'S ROAD, BENGALURU-560 001. …RESPONDENTS (BY SRI. DILIP M., ADVOCATE FOR R1 TO R4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 31.08.2024 BEARING DIN NO. ITBA/AST/S/144/2024-25/1068226849(1) PASSED BY THE 1ST RESPONDENT UNDER SECTION 144 READ WITH SECTION 260 AND 144B OF THE INCOME TAX ACT, 1961, FOR ASSESSMENT YEAR 2018-19 (ANNEXURE A) 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 seeks the following reliefs: "The Petitioner, therefore, most humbly prays that this Hon'ble Court may be pleased to issue a writ, order or direction: (i) Quashing the impugned Assessment Order dated 31.08.2024 bearing DIN No. ITBA/AST/S/144/2024- 25/1068226849(1) passed by the 1st Respondent under Section 144 read with Section 260 and 144B of the Income Tax Act, 1961, for assessment year 2018- 19 (Annexure 'A'); (II) Quashing the impugned computation sheet dated 31.08.2024 bearing DIN and Document No. ITBA/AST/S/88/2024-25/1068226881(1) issued by the - 3 - NC: 2025:KHC:9568 WP No. 5633 of 2025 1st Respondent under the Income-tax Act, 1961, for the assessment year 2018-19 (Annexure 'A-1'); (iii) Quashing the impugned notice of demand dated 31.08.2024 bearing DIN and Notice No. ITBA/AST/S/156/202425/1068226882(1) issued by the 1st Respondent under Section 156 of the Income- tax Act, 1961, for the assessment year 2018-19 (Annexure 'A-2'); (iv) Quashing the impugned penalty notice dated 22.10.2024 bearing DIN No. ITBA/PNL/F/272A(1)(b)/2024-25/1069836467(1) initiated by the 1st Respondent under Section 270A of the Income Tax Act 1961 for the Assessment Year 2018-19 (Annexure 'B'); (v) Quashing the impugned penalty notice dated 22.10.2024 bearing DIN No. ITBA/PNL/F/270A/2024- 25/1069836123(1) initiated by the 1st Respondent under Section 272A(1)(b) of the Income Tax Act 1961 for the Assessment Year 2018-19 (Annexure 'B-1'); (vi) Quashing the impugned Letter of Recovery dated 22.11.2024 bearing DIN No. ITBA/COM/F/17/2024- 25/1070572929(1) issued by the 3rd Respondent for the Assessment Year 2018-19 (Annexure 'Q') and (vii) Pass such order or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interests of justice and equity. 2. A perusal of the material on record would indicate that the petitioner earlier approached this court in WP No.25147/2022, which was disposed of by this court vide final order dated 27.07.2023 as hereunder: "The petitioner has sought to assessment order at Annexure-A1, computation sheet at Annexure-A2, notice of - 4 - NC: 2025:KHC:9568 WP No. 5633 of 2025 demand at Annexure-A3, penalty order at Annexure-B1, penalty computation sheet dated 25.02.2022 at Annexure-B2 and penalty demand notice at Annexure-B3. set aside the 2. set aside the 2. The primary contention of the petitioner is that the assessment order ought to have been passed under Section 143(3) r/w 144B, whereas the assessment order is passed under the wrong provision as is evident from the perusal of column 12 of Annexure-A1 which reads as follows: 12 Order passed under Section 143(3) Income Tax Act read with 143(3A) & 143(38) of the Income Tax Act 3. Sri. Dilip, learned counsel for Revenue submits that the contention raised is hyper technical and the procedure under Section 144B has been followed. 4. Learned counsel for petitioner submits that the contention regarding nomenclature under which the order is passed is merely one of the contentions and other contentions have been raised which includes violation of principles of natural justice insofar as opportunity of personal hearing was not afforded in an effective manner as period of response was unreasonably short period of time. 5. The learned counsel for Revenue submits that the question of rectification at this stage does not arise in light of proceedings being under Faceless scheme. 6. After hearing both sides and in light of the stand of the Revenue while noticing that the order has been passed under the wrong provision and also noticing the other contentions of the petitioner, it would meet the ends of justice to set aside the order at Annexure-A1 and relegate the matter post-draft assessment order. Subsequent to such stage, petitioner is at liberty to take all available contentions as permissible under Section 144B. 7. Accordingly, the assessment order at Annexure-A1, computation sheet at Annexure-A2, notice of demand at - 5 - NC: 2025:KHC:9568 WP No. 5633 of 2025 Annexure-A3, penalty order at Annexure-B1, penalty computation sheet at Annexure-B2 and penalty demand notice at Annexure-B3 are set aside. All contentions are kept open. 8. The petition stands disposed off accordingly." 3. In pursuant to the same, the respondent issued intimation dated 01.09.2023 as well as show cause notice dated 12.08.2024 to which the petitioner submitted the response vide Annexure-G, dated 14.08.2024. However, the respondent issued an endorsement at Annexure-H, dated 16.08.2024 informing the petitioner that the file uploaded by the petitioner was corrupted and the information was to be re-submitted by the petitioner once again by 19.08.2024. In pursuance of the said communication dated 16.08.2024, the petitioner once again re-submitted the said information on 17.08.2024 and also reply on 21.08.2024. It is the grievance of the petitioner that despite the petitioner complying with submitting/re-submitting his reply to the respondent, the respondent has failed to consider the same while passing the impugned assessment order which is vitiated and deserves to be set aside. - 6 - NC: 2025:KHC:9568 WP No. 5633 of 2025 4. Per contra, learned counsel for the respondent submits that there is no merit in the petition and the same is liable to be dismissed. 5. As rightly contended by the learned counsel for the petitioner, at paragraph 3 of the impugned order, though the respondent has stated that the petitioner replied to the show cause notice on 14.08.2024, detailed information in this regard was not produced which is factually incorrect and contrary to the aforesaid material on record which has not been taken into account or considered by the respondent before passing the impugned order. 6. Under these circumstances, having regard to the factually incorrect finding recorded in the impugned order that the petitioner had not submitted detailed evidence etc., in support of his claims, I deem it just and appropriate to set aside the impugned order dated 31.08.2024 and remit the matter back to respondent No.1 for reconsideration afresh in accordance with law. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. - 7 - NC: 2025:KHC:9568 WP No. 5633 of 2025 (ii). The impugned Assessment Order dated 31.08.2024 at Annexure-A, computation sheet dated 31.08.2024 at Annexure-A1, notice of demand dated 31.08.2024 at Annexure-A2, penalty notice dated 22.10.2024 at Annexure-B, penalty notice dated 22.10.2024 at Annexure-B1 and Letter of Recovery dated 22.11.2024 at Annexure-Q are hereby set aside. (iii) The matter is remitted back to respondent No.1 for reconsideration afresh. (iv) Liberty is reserved in favour of the petitioner to submit replies and additional replies, pleadings, documents etc. which shall be considered after providing sufficient information. (v) Liberty is reserved in favour of petitioner to make a request to respondent No.1 for an opportunity for personal hearing which shall be considered by respondent No.1 in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE DS CT: TSM List No.: 1 Sl No.: 16