- 1 - NC: 2025:KHC:16544 WP No. 7155 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 7155 OF 2025 (T-IT) BETWEEN: M/S HASHAM TRADERS, A PARTNERSHIP FIRM REGISTERED UNDER THE PROVISIONS OF THE PARTNERSHIP ACT, 1932 134, NEXT TO WIPRO CORPORATE OFFICE, SARJAPUR ROAD, DODDAKANNELLI, BENGALURU – 560 035 REPRESENTED HEREIN BY ITS PARTNER, MR. SRINIVASAN PAGALTHIVARTHI ALSO AT NO 524. 16TH CROSS, INDIRANAGAR 2ND STAGE, BANGALORE – 560 038. …PETITIONER (BY 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. CENTRAL BOARD OF DIRECT TAXES REPRESENTED BY THE CHAIRPERSON, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, ROOM NO.269, NORTH BLOCK, NEW DELHI – 110 001 3. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE 4(1)(1), BENGALURU BMTC BUILDING, 80 FEET ROAD, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:16544 WP No. 7155 of 2025 4. THE PRINCIPAL COMMISSIONER OF INCOME TAX BENGALURU-1 C R BUILDING, NO.1, QUEENS ROAD, BENGALURU – 560 001 …RESPONDENTS (BY SRI. E.I. SANMATHI AND SRI. M. DILIP, ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER DATED 25.02.2025 BEARING DIN NO. ITBA/AST/S/143(3)/2024-25/1073701161(1) PASSED BY THE 1ST RESPONDENT UNDER SECTION 143(3) READ WITH SECTION 144B OF THE INCOME-TAX ACT, 1961, FOR ASSESSMENT YEAR 2022-23 (ANNEXURE-A) AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: (i) Quashing the Impugned Assessment Order dated 25.02.2025 bearing DIN No. ITBA/AST/S/143(3)/2024- 25/1073701161(1) passed by the 1st Respondent under Section 143(3) read with Section 144B of the Income-tax Act, 1961, for assessment year 2022-23 (Annexure 'A'); (ii) Quashing the impugned computation sheet dated 25.02.2025 bearing DIN and Document No. ITBA/AST/S/522/202 4-25/1073701818(1) issued by the 1st Respondent under the Income-tax Act, 1961, for the assessment year 2022-23 (Annexure 'A-1'); - 3 - NC: 2025:KHC:16544 WP No. 7155 of 2025 (iii) Quashing the impugned notice of demand dated 25.02.2025 bearing DIN and Notice No. ITBA/AST/S/156/2024 25/1073701510(1) issued by the 1st Respondent under Section 156 of the Income-tax Act, 1961, for the assessment year 2022-23 (Annexure 'A-2'); (iv) Quashing the impugned penalty notice dated 25.02.2025 bearing DIN No. ITBA/PNL/S/270A/2024- 25/1073701731(1) Issued by the 1st Respondent under Section 274 read with Section 270A of the Income-tax Act, 1961, for the Assessment Year 2022-23 (Annexure 'A-3); (v) Directing the 1st Respondent to pass a fresh assessment order for the assessment year 2022-23 in accordance with law and, specifically, in the light of and after applying the binding directions and clarifications contained in the Circular No.6/2016 dated 29.02.2016 (Annexure 'B') and clarification bearing F.No.225/12/2016-ITA-II dated 02/05/2016 (Annexure 'C') and maintaining the principle of consistency, as expeditiously as possible, and after granting a reasonable opportunity of hearing to the Petitioner and permitting it to make further submissions and place on record further documents as may be necessary; (vi) 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. Heard learned counsel for the petitioner and learned counsel for the respondent and perused the material on record. - 4 - NC: 2025:KHC:16544 WP No. 7155 of 2025 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the CBDT Circulars at Annexures-B and C dated 29.02.2016 and 02.05.2016, in order to point out that despite the petitioner submitting detailed reply dated 05.02.2025 along with relevant documents to the show- cause notice dated 27.01.2025 issued by respondent No.1, respondent No.1 neither considered the said reply in their proper perspective nor the aforesaid Circulars dated 29.02.2016 and 02.05.2016 and as such, the impugned order deserves to be set aside and the matter be remitted back for reconsideration afresh, in accordance with law. 4. 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. 5. A perusal of the material on record including the impugned order at Annexure-A will indicate that the detailed reply and documents submitted by the petitioner have not been considered by the petitioner in their proper perspective, in addition - 5 - NC: 2025:KHC:16544 WP No. 7155 of 2025 to the fact that the aforesaid circulars have not been considered, which warrants interference of this Court in the present petition. 6. In the result, I pass the following: ORDER i) The petition is allowed. ii) The impugned Assessment Order at Annexure-A dated 25.02.2025, the impugned computation sheet at Annexure- A1 dated 25.02.2025 and the impugned demand notice at Annexure-A2 dated 25.02.2025, passed/issued by respondent No.1 are hereby set aside. iii) The matter is remitted back to respondent No.1 for reconsideration of the matter afresh bearing in mind the CBDT Circulars at Annexures-B and C dated 29.02.2016 and 02.05.2016, in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 1 Sl No.: 5