- 1 - HC-KAR NC: 2025:KHC:49319 WP No. 20587 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.20587 OF 2021 (T-IT) BETWEEN: DHS GROUP REP. BY ITS PARTNER SRI D.H. SOOFI, S/O LATE SRI D.P. HUSAINAR HAJI, AGED ABOUT 55 YEARS, MAIN ROAD, VIRAJEPT – 571 218 KODAGU, KARNATAKA …PETITIONER (BY SRI. A. SHANKAR, SENIOR COUNSEL FOR SRI. S. ANNAMALAI, ADVOCATE) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE REP. BY ADDITIONAL/JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWARAHALAL NEHRU STADIUM DELHI – 110 003 2. THE INCOME-TAX OFFICER, ITO WARD, MADIKERI, MADIKERI SRIVALLI BUILDING, MADIKERI – 571 201 MYSURU, KARNATAKA …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE RESPONDENT NO.1 U/S 143(3) R/W Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:49319 WP No. 20587 of 2021 SECTION 144B OF THE INCOME-TAX ACT, 1961 DATED 25.09.2021 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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: “i) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the assessment order passed by the respondent No.1 under Section 143(3) read with Section 144B of the Income-tax Act, 1961 dated 25.09.2021 for the assessment year 2018-19 herein marked as Annexure-A1. ii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Computation sheet passed by the Respondent No.1 for the assessment order passed under section 143(3) read with section 144B of the Income-tax Act, 1961 dated 25.09.2021 for the assessment year 2018-19 herein marked as Annexure-A2. iii) Issue a writ of certiorari and direction in the nature of a writ of certiorari quashing the Notice of demand issued under section 156 of the Income-tax act, 1961 dated 25.09.2021 for the assessment year 2018-19 for a sum of Rs.7,97,99,074/- herein marked as Annexure-A3. - 3 - HC-KAR NC: 2025:KHC:49319 WP No. 20587 of 2021 iv) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that on 22.09.2021, the respondent issued the impugned Show Cause Notice calling upon the petitioner to submit a reply on or before 24.09.2021, which is less than minimum of 7 days as stipulated in the Standard Operating Procedure (SOP). Under identical circumstances, in M/s. Sterling Urban Ventures Vs. Assessment Unit and another – W.P.No.13061/2024 dated 25.06.2024 held as under: “Petitioner has sought for setting aside of the assessment order under Section 143(3) read with Section 144-B of the Income Tax Act, 1961 (for short 'the Act') at Annexure-A1; computation sheet dated 29.03.2024 at Annexure-A2; demand notice issued under Section 156 of the Act at Annexure-A3 and the penalty notice issued under Section 274 read with Section 270-A of the Act at Annexure- A4. - 4 - HC-KAR NC: 2025:KHC:49319 WP No. 20587 of 2021 2. Petitioner has contended that the show cause notice at Annexure-G1 regarding proposed variation was issued on 16.03.2024 and was required to be replied by 20.03.2024. It is submitted that the same is in violation of the Standard Operating Procedure (SOP) prescribing time to be afforded for making out reply and accordingly, the petitioner having been prejudiced while such violation of the principles of natural justice, the impugned assessment order is required to be set aside and fresh opportunity be afforded to the petitioner. 3. The facts regarding the notice being issued on 16.03.2024 and reply having to be made out by 20.03.2024 are borne out on record. The SOP regarding procedure for faceless income tax assessment under Section 144-B at Clause N.1.3 provides that a period of 7 days is required to be afforded. In light of the same, the impugned order at Annexure-A1; computation sheet at Annexure-A2; demand notice at Annexure-A3 and the penalty notice at Annexure- A4, are all set aside. The matter is remitted back to the stage of reply to the show cause notice at Annexure-G1 dated 16.03.2024. All contentions are kept open. 4. Accordingly, the petition is disposed off.” 4. In the instant case, the impugned Show Cause Notice issued on 22.09.2021 calling upon the petitioner to submit a reply / response on or before 24.09.2021 clearly is less than 7 days warranting interference by this Court in the present petition. - 5 - HC-KAR NC: 2025:KHC:49319 WP No. 20587 of 2021 5. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned order / computation sheet / Notice at Annexures – A1, A2 and A3 all dated 25.09.2021 passed / issued by respondent No.1 are hereby quashed. (iii) The matter is remitted back to the stage of petitioner submitting reply to the Show Cause Notice at Annexure – F dated 22.09.2021 and to proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2