- 1 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 21229 OF 2025 (T-IT) BETWEEN: ARCADE CONSTRUCTIONS A PARTNERSHIP FIRM REGISTERED UNDER SECTION 58(1) OF THE PARTNERSHIP ACT 1932. REPRESENTED BY ITS PARTNER, NP GIRISH, AGED 47 YEARS, S/O DORASWAMY NAIDU, NO.130, 3RD FLOOR, DREAM MEADOWS, ITPL ROAD, BROOKFIELD, BANGALORE -560 037 PAN: ABEFA4371K …PETITIONER (BY SRI. RAVI SHANKAR S.V, ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 4(1)(3), BANGALORE - 560 095. 2. NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-2, THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX, BMTC BUILDING, KORAMANGALA, BANGALORE - 560 095. …RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) OF THE ACT, DTD. 15.03.2024 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2023- 24/1062699266(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2020-21 HEREIN MARKED AS ANNX-A AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this court calling in question a notice issued under Section 148A(b) of the Income Tax Act, 1961 ('the Act' for short) dated 15.03.2024 and all subsequent proceedings drawn, thereafter. 2. Heard Shri Ravi Shankar S.V., learned counsel appearing for the petitioner and Shri Sushal Tiwari, learned counsel appearing for the respondents. 3. The petitioner is a firm and has not filed return of income for the assessment year 2020-2021. The firm is said to have closed down its business on the onset of pandemic. Respondent No.1 issues a notice under Section 148A(b) of the act on the premise that the petitioner has not filed the return of income for the assessment year 2020-2021 and income chargeable to tax that has escaped assessment for the assessment year 2020-2021. Respondent No.1 passes an order under Section 148A(b) of the Act, obtaining approval from respondent No.3 considering non filing of return and a fit case - 4 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 for reopening the assessment under Section 148 of the Act. On 21.02.2025, it transpires that respondent No.2 passes an ex-parte assessment order making addition of Rs.9,10,05,203/- as unexplained investments under Section 69A of the Act. Certain subsequent proceedings are taken up, which were not necessary to be considered at this juncture, as the petition is to be disposed on account of the fact that the order that is drawn against the petitioner is pursuant to ex-parte proceedings. 4. The learned counsel appearing for the petitioner would reiterate the grounds urged in the petition. 5. Shri Sushal Tiwari, learned counsel representing the respondents would seek to defend the action, but not in a position to dispute the fact that the proceedings drawn were ex-parte. 6. In the light of the admitted fact that the order impugned at the outset was drawn pursuant to an ex-parte proceedings, it becomes unsustainable. As a consequence thereof, all the subsequent orders would also be rendered unsustainable. Therefore, I deem it appropriate to obliterate the - 5 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 orders and remit the matter back to the hands of respondent No.1 from the stage of furnishing a reply to the notice issued under Section 148A(d) of the Act. 7. For the aforesaid reasons, the following: ORDER (i) The writ petition is allowed-in-part. (ii) The order dated 15.03.2024 bearing DIN No.ITBA/AST/F/148A(SCN)/2023-24/1062699266(1); order dated 25.03.2024 bearing DIN No.ITBA/AST/F/148A/2023-24/1063337441(1); order dated 25.03.2024 bearing DIN No.ITBA/AST/S/148_1/2023-24/1063337426(1); order dated 21.02.2025 bearing DIN No.ITBA/AST/S/147/2024-25/1073548505(1); order dated 21.02.2025 bearing DIN No.ITBA/PNL/S/271AAC(1)/2024-25/1073548600(1) and order dated 21.02.2025 bearing No.ITBA/PNL/S/272A(1)(d)_FL/2024- 25/1073548086(1) stands quashed. (iii) The matter is remitted back to the hands of respondent No.1 to the stage of furnishing the reply under Section 148A(d) of the Act. - 6 - HC-KAR NC: 2025:KHC:32641 WP No. 21229 of 2025 (iv) All contentions other than the one considered in the course of this order of both the parties shall remain open. Sd/- (M.NAGAPRASANNA) JUDGE JY List No.: 1 Sl No.: 22 CT: BHK