- 1 - HC-KAR NC: 2025:KHC-D:11224-DB WA No. 100475 of 2024 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 2ND DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S. SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL WRIT APPEAL NO. 100475 OF 2024 (T-IT) BETWEEN: 1. CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI-110001. REP. BY ITS CHAIRMAN. 2. UNDER SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, 3RD FLOOR, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI-110001. 3. INITIATING OFFICER, DEPUTY COMMISSIONER OF INCOME TAX, (BPU), TRISTAR BUILDING, 2ND AND 3RD FLOOR, EDC COMPLEX, PATTO PLAZA, PANAJI GOA-403001. 4. ADJUDICATING AUTHORITY, COMMISSIONER OF INCOME TAX, SHASTRI BHAVAN, 4TH FLOOR, NEW BUILDING COMPLEX, NO. 26, HADDOWS ROAD, NUNGAMBAKKAM, CHENNAI-600006. APPELLANTS (BY SRI. THIRUMALESH M., AND SMT. ROOPA ANVEKAR, ADVOCATES) Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:11224-DB WA No. 100475 of 2024 AND: SHRI CHUKALLUR REDDY ANILKUMAR, S/O. C. GOPAL REDDY, AGED 47 YEARS, R/AT. H. NO. 147, 3RD CROSS, NEHRU COLONY, GANDHINAGAR, BALLARI-583103. …RESPONDENT (BY SRI. ASHOK A. KULKARNI, ADVOCATE) THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH COURT ACT, 1961, PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN W.P. NO.103657/2022 DATED 23.11.2022 AND ETC. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A.PATIL ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE S.SUNIL DUTT YADAV) The appellants have called in question the correctness of the order passed in W.P.No.103657/2022. 2. It must be noticed that the learned Single Judge while disposing off the writ petition by order dated 23.11.2022 - 3 - HC-KAR NC: 2025:KHC-D:11224-DB WA No. 100475 of 2024 had relied on the order of the Apex Court in the case of Union of India and another v. M/s Ganpati Dealcom Pvt. Ltd., reported in 2022 SCC ONLINE SC 1064. The learned Single Judge noticing the order of the Apex Court whereby Section 5 of the Benami Transactions (Prohibition) Act, 1988 having been held to be unconstitutional had disposed the writ petition while setting aside the impugned order passed by the revenue. It is noticed that subsequently the Union of India had sought for review of the order passed by the Apex Court declaring provision of the Benami Transactions (Prohibition) Act to be unconstitutional. The said review petition came to be allowed by the Apex Court through its order dated 18.10.2024 reported in Union of India v. Ganpati Dealcom (P) Ltd., [2024] 167 TAXMANN.COM 525 (SC). The Apex Court had made in its order certain observations at Para – 5, 6 and 7 and the same are extracted herein below: “5. It is not disputed that there was no challenge to the constitutional validity of the unamended provisions. This is also clear from the formulation of the question which arose for consideration before the Bench in paragraph 3 of the judgment, which has been extracted above. In the submissions of parties which have been recorded in the - 4 - HC-KAR NC: 2025:KHC-D:11224-DB WA No. 100475 of 2024 judgment, the issue of constitutional validity was not squarely addressed. 6. A challenge to the constitutional validity of a statutory provision cannot be adjudicated upon in the absence of a lis and contest between the parties. We accordingly allow the review petition and recall the judgment dated 23 August 2022. Civil Appeal No 5783 of 2022 shall stand restored to file for fresh adjudication before a Bench to be nominated by the Chief Justice of India on the administrative side. 7. Where any other proceedings have been disposed of by relying on the judgment of this Court in Ganpati Dealcom Private Ltd (supra), liberty is granted to the aggrieved party to seek a review in view of the present judgment.” 3. It must be noticed that in terms of the observation made in the review, the Apex Court had restored the adjudication in Civil Appeal No.5783 of 2022 while recalling the judgment dated 23.08.2022. Further at Para – 7 of the order, Apex Court had observed that where any proceedings had been disposed off by relying on the judgment of the Court in Union of India and another v. Ganpati Dealcom Pvt. Ltd., (2023) 3 SCC 315, liberty was granted to the aggrieved party to seek a review in light of the present judgment. - 5 - HC-KAR NC: 2025:KHC-D:11224-DB WA No. 100475 of 2024 4. In the present case, while noticing that the order of the learned Single Judge which is in question herein was also based on the order of the Apex Court in Ganpati Dealcom Private Limited prior to review the order of the learned Single Judge would also require to be reviewed and matter re-adjudicated in light of the observations at Para – 7 of the order passed in review by the Apex Court. Accordingly, the writ appeal is allowed. The order dated 23.11.2022 in W.P.No.103657/2022 is set aside and matter is remitted to the learned Single Judge for fresh consideration. 5. All contentions are kept open. Sd/- (S.SUNIL DUTT YADAV) JUDGE Sd/- (VIJAYKUMAR A.PATIL) JUDGE CLK /CT-AN List No.: 2 Sl No.: 45