- 1 - NC: 2025:KHC:17167 WP No. 11511 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.11511 OF 2025 (T-IT) BETWEEN: PINGAARA HORTICULTURE FARMERS PRODUCER COMPANY LIMITED, COMPANY LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 KALAKATTA, PUTTUR ROAD, VITAL-574243, KARNATAKA REPRESENTED BY ITS PRESIDENT, SRI. RAMAKISHORE K., AGED ABOUT 60 YEARS, SON OF SRI. K. SHIVARAMA BHAT. …PETITIONER (BY SRI. A. SHANKAR SR. ADVOCATE FOR SRI. MADHUSUDHAN U. A., ADVOCATE) AND: 1. THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, KARNATAKA - 560 095. 2. THE INCOME TAX OFFICER WARD - 1(1), MANGALORE, C.R. BUILDING, NG ROAD, ATTAWARA, MANGALURU - 575 001. …RESPONDENTS (BY SRI.THIRUMALESH M., ADVOCATE) Digitally signed by AASEEFA PARVEEN Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17167 WP No. 11511 of 2025 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 07.03.2024 PASSED UNDER SECTION 144 R/W S.144B OF THE ACT FOR THE ASSESSMENT YEAR 2022-23 BY THE RESPONDENT NO.1 BEARING DIN NO.ITBA/AST/S/144/2023-24/1062208462(1) HEREIN MARKED AS ANNEXURE-A1 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: "Wherefore it is prayed that this Hon'ble Court be pleased to: a) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 07.03.2024 passed under Section 144 r/w Section 144B of the Act for the Assessment Year 2022-23 by the respondent No.1 bearing DIN No. ITBA/AST/S/144/2023-24/1062208462(1) herein marked as Annexure - A1. b) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 07.03.2024 issued by the Respondent No.1 for the Assessment Year 2022-23 bearing DIN & Document No. ITBA/AST/S/622/2023- 24/1062208550(1) herein marked as Annexure - A2. c) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice of demand issued under section 156 of the Act dated 07.03.2024 by the - 3 - NC: 2025:KHC:17167 WP No. 11511 of 2025 Respondent No.1 for the Assessment Year 2022-23 bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1062208601(1) herein marked as Annexure - АЗ. d) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 19.08.2024 passed under section 270A of the Act by the Respondent No.1 for the Assessment Year 2022-23 bearing DIN No. ITBA/PNL/F/270A/2024-25/1067742685(1) herein marked as Annexure- A4. e) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 19.08.2024 pertaining to penalty levied under section 270A of the Act by the Respondent No.1 for the Assessment Year 2022-23 bearing DIN & Order No. ITBA/PNL/S/270A/2023- 24/1062208656(1) herein marked as Annexure - A5. f) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 19.08.2024 issued under section 156 of the Act pertaining to penalty levied under section 270A of the Act by the Respondent No.1 for the Assessment Year 2022-23 bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1067740268(1) herein marked as Annexure - A6. g) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity." - 4 - NC: 2025:KHC:17167 WP No. 11511 of 2025 2. Heard learned Senior Counsel for the petitioner and learned counsel for respondent and perused the material on record. 3. A perusal of the material on record will indicate that vide Annexure-M dated 28.02.2024, the respondent called upon the petitioner to show cause as to why the proposed variation should not be made. In this context, learned senior counsel for the petitioner submit that the said show cause notice stipulates the period less than seven days. In the said notice dated 28.02.2024 calling upon the petitioner to submit a reply on or before 04.3.2024 which is less than the stipulated period of seven days which is impermissible in law and the same deserves to be quashed. It is therefore submitted that the impugned assessment order dated 07.03.2024 deserves to be allowed and the impugned assessment order and subsequent notices deserves to be quashed. 4. Per contra, learned counsel for the respondent submitted that there is no merit in the petition and the same is liable to be dismissed. - 5 - NC: 2025:KHC:17167 WP No. 11511 of 2025 5. As rightly contended by the learned Senior Counsel for the petitioner, in identical circumstances in Writ Petition No.12923/2023 dated 06.07.2023, this Court held as under: "The petitioner has sought for setting aside of the assessment order dated 19.05.2023 passed by respondent No.2 under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short, ‘1961 Act’) at Annexure-A1, setting aside of the computation sheet at Annexure-A2, setting aside of the notice of demand at Annexure-A3 and has also sought for setting aside of the penalty notice at Annexure-A4. The petitioner has also sought for setting aside of the notice under Section 148 of 1961 Act at Annexure-B1, setting aside of notice under Section 148A(b) of 1961 Act at Annexure-B2, setting aside of notice under Section 148A(d) of 1961 Act at Annexure-B3 and the notice under Section 148 of 1961 Act at Annexure-B4. The petitioner has also sought for setting aside the Instruction bearing No.1/2022 dated 11.05.2022 at Annexure-C. 2. Learned counsel for the petitioner submits that the assessment order is liable to be set aside on the sole ground of violation of principles of natural justice as the show cause notice at Annexure-J was issued on 10.05.2023 seeking for reply before 15.05.2023, which time for response is contrary to the SOP applicable for faceless assessment, copy of which is produced at Annexure-T. 3. Attention is drawn to Clause N.1.3 which observes that the time for response to a show cause notice ought to be 7 days from the issue of show cause notice. He submitted that in the assessment order it was observed that there was no reply to the show cause notice - 6 - NC: 2025:KHC:17167 WP No. 11511 of 2025 and the Assessing Officer has proceed without any reply from the petitioner. It is submitted that in the light of the inadequate time that is available to make out a response which time limit is contrary to the SOP relating to time to be given for response to the show cause notice, it is submitted that the assessment order may be set aside and fresh opportunity may be accorded to the petitioner to make out reply to the show cause notice. 4. Perused the show cause notice at Annexure-J. 5. It is clear that the notice has been issued on 10.05.2023 by 18.14 hours. The response was directed to be made by 15.05.2023. The time that is stipulated for response is in clear violation of the applicable SOP at Clause N.1.3 which requires that at least 7 days time to be given for the purpose of making out a response. 6. It is clear that the plea of prejudice caused to the petitioner and violation of principles of natural justice is a contention that requires acceptance. Accordingly, on the sole ground, the matter is remanded to the stage post show cause notice at Annexure-J dated 10.05.2023. The petitioner is at liberty to make out his reply to the show cause notice at Annexure-J and the Authority to afford all opportunities as is permissible under the law to complete the proceedings. All contention of the petitioner are kept open. 7. Learned counsel for the petitioner submits that the aspect of limitation is also to be kept open. Said submission of the petitioner is taken note of. Accordingly, Annexures-A1 to A4 are set aside. - 7 - NC: 2025:KHC:17167 WP No. 11511 of 2025 The matter is disposed off subject to the above observations." 6. In the instant case, the impugned show cause notice dated 28.02.2024 will indicate, it stipulates only for a period of four days as against the minimum prescribed period of seven days which is impermissible in law. Consequently, all further proceedings pursuant to the impugned show cause notice deserves to be quashed by reserving liberty in favour of the respondent to issue fresh show cause notice and proceed further in accordance with law. 7. In the result, the following ORDER (i) The writ petition is hereby allowed. (ii) Annexures-A1 to A6 are hereby quashed. (iii) Liberty is reserved in favour of the respondent to issue a fresh show cause notice and proceed further in accordance with law subject to all exceptions and defenses available to the petitioner. Sd/- (S.R.KRISHNA KUMAR) JUDGE AP List No.: 2 Sl No.: 13