- 1 - NC: 2025:KHC:13203 WP NO.29677 OF 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR WRIT PETITION NO.29677 OF 2024 (T-IT) BETWEEN: SRI. ABHILASH VENKATESH S/O T.N. VENKATESH, AGED ABOUT 35 YEARS, R/AT NO.550, 11TH 'B' CROSS, NAGAPURA, W.O.C. ROAD, MAHALAKSHMIPRUAM, BENGALURU - 560 086. …PETITIONER (BY 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 MATERIAL ON RECORD, NEW DELHI - 110 059. REP. BY THE ASSESSING OFFICER. 3. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(1) C.R. BUILDING, QUEENS ROAD, BENGALURU - 560 001. Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13203 WP NO.29677 OF 2024 4. PRINCIPAL. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, C.R. BUILDING QUEENS ROAD, BENGALURU - 560 001. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH ALL THE PENALTY ORDERS ISSUED UNDER SECTION 272A(1)(d) OF THE INCOME TAX ACT BEARING NO.ITBA/PNL/F/272A(1)(d)/2024- 25/1069002171(1) DATED 23.09.2024 VIDE ANNEXURE-E3; UNDER SECTION 270A OF THE INCOME TAX ACT BEARING NO.ITBA/PNL/F/270A/2024-25/1069229903(1) DATED 27.09.2024 VIDE ANNEXURE-E4; UNDER SECTION 271AAC(1) OF THE INCOME TAX ACT BEARING NO.ITBA/PNL/F/271AAC(1)/2024-25/ 1069229986 (1) DATED 27.09.2024 VIDE ANNEXURE-E5 PASSED BY THE RESPONDENT NO.3 FOR THE ASSESSMENT YEAR 2022-23 AND REMAND THE MATTER BACK TO THE ASSESSING OFFICER TO PASS FRESH ORDERS IN ACCORDANCE WITH LAW; 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, the petitioner seeks following relief: "a. Quash all the penalty orders issued under section 272A(1)(d) of the Income Tax Act bearing No.ITBA/PNL/F/ 272A(1)(d)/2024-25/1069002171(1) dated 23.09.2024 vide Annexure-E3; under section 270A of the Income Tax Act - 3 - NC: 2025:KHC:13203 WP NO.29677 OF 2024 bearing No.ITBA/PNL/F/270A/2024-25/1069229903(1) dated 27.09.2024 vide Annexure-E4; under section 271AAC(1) of the Income Tax Act bearing No.ITBA/PNL/F/271AAC(1)/2024-25/1069229986(1) dated 27.09.2024 vide Annexure-E5 passed by the respondent no.3 for the assessment year 2022-23 and remand the matter back to the Assessing Officer to pass fresh orders in accordance with law; b. Quash the assessment order dated 29.03.2024 bearing No.ITBA/AST/S/144/2023-24/1063607855(1) vide Annexure-D passed by the respondent No.3 for the assessment year 2022-23 and remand the matter back to the Assessing Officer for reconsideration in accordance with law." 2. Heard learned counsel for the petitioner and learned counsel fore respondents and perused the material on record. 3. A perusal of the material on record will indicate that, pursuant to notices issued to the petitioner commencing from 31.05.2023 to 04.03.2024, respondents conducted the assessment proceedings which culminated in best judgment assessment order at Annexure-D dated 29.03.2024. 4. Learned counsel for the petitioner submits that, before proposing to pass a best judgment assessment order, it was incumbent upon the respondents to issue notice under Section 144 of the Income Tax Act, 1961 (for short, 'I.T. Act'), proposing to pass a best judgment - 4 - NC: 2025:KHC:13203 WP NO.29677 OF 2024 assessment order against the petitioner and failure on the part of the respondents to do so, is contrary to provision contained under Section 144 of the I.T. Act and also violative principles of natural justice since no opportunity was provided to the petitioner to have his say to the aforesaid proposed best judgment assessment order and as such, the impugned assessment order and consequential penalty orders etc., are liable to be quashed and matter be remitted back to the Assessing Officer for reconsideration afresh in accordance with law. 5. It is also submitted by learned counsel for the petitioner that, though the petitioner submitted reply requesting the respondents to communicate the proposed best judgment assessment, if any, the respondents did not do so, is taken as circumstance vitiate the impugned order. 6. Per contra, learned counsel for respondents submit that there is no merit in the petition and same is liable to be dismissed. 7. In the instant case, it is an undisputed fact borne out from the material on record that the respondents did not issue notice under Section 144 of the I.T. Act before passing the best judgment assessment order, which deserves to be quashed and remit the matter back to the respondents for fresh consideration in accordance with law. 8. In the result, I pass the following: - 5 - NC: 2025:KHC:13203 WP NO.29677 OF 2024 O R D E R i) Writ Petition is allowed; ii) Impugned orders at Annexure-D dated 29.03.2024, Annexure-E3 dated 23.09.2024, Annexure-E4 dated 27.09.2024 and Annexure-E5 dated 27.09.2024 are hereby set-aside; iii) Matter is remitted back to the Assessing Officer for reconsideration afresh by directing the respondents to issue notice under Section 144 of the I.T. Act to the petitioner and proceed further in accordance with law. SD/- (S.R.KRISHNA KUMAR) JUDGE ARK List No.: 1 Sl No.: 12