- 1 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 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.19252 OF 2021 (T-IT) BETWEEN: KPTCL EMPLOYEES CREDIT CO-OPERATIVE SOCIETY LTD., REP. BY SRI H.N. SRINIVASA, CHIEF EXEC. OFFICER AGED 44 YEARS, KPTCL, B H ROAD, TIPTUR – 572 202, TUMKUR DIST. …PETITIONER (BY SRI. ABHIJIT S. BAPU, FOR SRI. SHREEHARI KUTSA, ADVOCATE) AND: 1. UNION OF INDIA REP. BY DIRECTOR, DEPT OF REVENUE UNDER MINISTRY OF FINANCE ROOM NO.46, NORTH BLOCK, NEW DELHI – 110 001 2. CENTRAL BOARD OF DIRECT TAXES REP. BY CHAIRMAN, NORTH BLOCK, NEW DELHI – 110 002 3. NATIONAL FACELESS ASSESSMENT CENTRE BY PR. CHIEF COMMISSIONER OF INCOME TAX, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STDIUM, DELHI – 110 003 4. INCOME TAX OFFICER, WARD 1, TIPTUR INCOME TAX OFFICE, JAYADEVA COMPLEX, RAILWAY STATIN ROAD, TIPTUR – 572 201 …RESPONDENTS (BY SRI. RAVI RAJ Y.V. & SRI. M. DILIP, ADVOCATES) Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 of 2021 THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE INSOFAR THE PETITIONER IS CONCERNED THAT THE SECTION 3 OF THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 IS ULTRA-VIRES THE SCHEME AND PROVISIONS OF THE INCOME TAX ACT, 1961 TO THE EXTENT IT CONFERS POWERS ON CENTRAL GOVERNMENT TO EXTEND BY WAY OF NOTIFICATION THE LIMITATION DATE FOR COMPETITION OF THE ACTIONS SPECIFIED UNDER SUB-SECTION (1) OF SAID SECTION VIDE ANNEXURE-A AND ETC., THIS PETITION, COMING ON FOR ORDERS, 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 reliefs: “a. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the petitioner is concerned that the Section 3 of the Taxation and other laws (relaxation and amendment of certain provisions) Act, 2020 is ultra-vires the scheme and provisions of the Income Tax Act, 1961 to the extent it confers powers on central government to extend by way of notification the limitation date for competition of the actions specified under sub-section (1) of said section enclosed as Annexure-A. b. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the petitioner is concerned that the Notification No. S.O.966(E) [NO.10/2021/F.NO.370142/35/2020-TPL] dated 27.02.2021 issued by the Central Board of - 3 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 of 2021 Direct Taxes and enclosed as Annexure-B1 is illegal insofar it extends the due date of assessment or reassessment and quash the same insofar it extends the limitation date for conclusion of assessment proceedings. c. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the petitioner is concerned that the Notification No.S.O.1703(E) [No.38/2021/F.No.370142/35/2020- TPL] dated 27.04.2021 issued by the Central Board of Direct Taxes and enclosed as Annexure-B2 is illegal insofar it extends the due date of assessment or reassessment and quash the same insofar it extends the limitation date for conclusion of assessment proceedings. d. Issue a writ of mandamus or any other appropriate writ(s), order(s), direction(s) declaring insofar the petitioner is concerned that the Notification No.S.O.2580(E) [No.74/2021/F.NO.370142/35/2020- TPL] dated 25.06.2021 issued by the Central Board of Direct Taxes and enclosed as Annexure-B3 is illegal insofar it extends the due date of assessment or reassessment and quash the same insofar it extends the limitation date for conclusion of assessment proceedings. e. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing the order of assessment passed under section 143(3) of the - 4 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 of 2021 Income Tax Act, 1961 dated 10.09.2021 passed by the Respondent No.3 and bearing DIN No.ITBA/AST/S/143(3)/2021-22/1035463491(1) which is enclosed as Annexure-C. f. Issue a writ of certiorari or any other appropriate writ(s), order(s), direction(s) quashing of the notice of demand issued under section 156 of the Income Tax Act, 1961 dated 10.09.2021 passed by the Respondent No.3 and bearing DIN No.ITBA/AST/S/156/2021-22/1035463551(1) which is enclosed as Annexure-D. g. And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the parties and perused the material on record. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invited my attention to the reply dated 19.02.2021 at Annexure G2 to point out that pursuant to the notice dated 16.02.2021 issued by the 3rd respondent under Section 142(1) the petitioner filed the aforesaid reply to the said notice. Further, the 3rd respondent passed an Assessment order dated 10.09.2021 under Section 143(3) read with section 144B of the I.T. - 5 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 of 2021 Act. The counsel for the petitioner pointed out to the impugned order dated 10.09.2021 in order to show that the 3rd respondent did not consider the reply dated 19.02.2021 filed by the petitioner and proceeded to pass the impugned order thereby violating principles of natural justice and as such, the petitioner is before this Court by way of present petition. 4. Per contra, learned counsel for the respondents- revenue submits that there is no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order will indicate that the petitioner filed its reply dated 19.02.2021 to the notice issued by the respondent dated 16.02.2021. It is also borne out from the impugned order dated 10.09.2021 that the 3rd respondent has not considered the reply dated 19.02.2021 filed by the petitioner and has proceeded to pass the impugned order. Under these circumstances, I am of the considered opinion that the impugned notices, proceedings culminating in the impugned penalty order is violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting justice - 6 - HC-KAR NC: 2025:KHC:49306 WP No. 19252 of 2021 oriented approach and by directing the 3rd respondent to consider the reply dated 19.02.2021 filed by the petitioner and additional response / reply, if any, and thereafter proceed further in accordance with law. 6. In the result, I pass the following:- ORDER (i) The petition is hereby allowed. (ii) The impugned Assessment order at Annexure-C dated 10.09.2021 passed by the 3rd respondent is hereby set aside. (iii) The matter is remitted back to the 3rd respondent for reconsideration afresh in accordance with law from the stage of submitting reply to the Notice at Annexure – G1 dated 16.02.2021 submitted by the petitioner. (iv) Liberty is reserved in favour of the petitioner to submit its response / reply along with the documents to the 3rd respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 19