- 1 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 31341 OF 2025 (T-IT) BETWEEN: S VENUGOPALA REDDY AND SON HINDU UNDIVIDED FAMILY, REP. BY HEREIN BY ITS KARTA SHRI S. VENUGOPALA REDDY S/O K. H. SHAMANNA REDDY, AGE ABOUT 73 YEARS R/A 18, 17TH E MAIN ROAD 7TH CROSS, 6TH BLOCK KORAMANGALA, BANGALORE – 560 095 …PETITIONER (BY SRI. SANDEEP HUILGOL, ADVOCATE) AND: 1. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM NEW DELHI – 110 003 2. INCOME TAX OFFICER, WARD 4(3)(2) BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KBH GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095 3. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK NEW DELHI – 110 001 …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED LETTER OF RECOVERY DTD. 02.09.2025 BEARING DIN AND LETTER NO. ITBA/RCV/F/17/2025-26/1080285386(1) ISSUED BY THE 2ND RESPONDENT UNDER VARIOUS RELEVANT PROVISIONS OF THE INCOME-TAX ACT, 1961 (ANNEXURE-A) 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, petitioner seeks for the following reliefs:- “(i) Quashing the Impugned Letter of Recovery dated 02.09.2025 bearing DIN and Letter No.ITBA/RCV/F/17/2025-26/1080285386(1) issued by the 2nd Respondent under various relevant provisions of the Income-tax Act, 1961 (Annexure ‘A’); (ii) Quashing the Impugned Assessment Order dated 25.03.2025 bearing DIN No.ITBA/AST/S/143(3)/2024- 25/1074973354(1) passed by the 1st Respondent under Section 143(3) read with Section 144B of the Income-Tax Act, 1961 for the Assessment Year 2023- 24 (Annexure ‘B’); (iii) Quashing the Impugned Computation Sheet dated 25.03.2025 bearing DIN & Document No. ITBA/AST/S/323/2024-25/1074973433(1) issued by the 1st Respondent for the Assessment Year 2023-24 (Annexure ‘B-1’) - 3 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 (iv) Quashing the impugned Notice of Demand dated 25.03.2025 bearing DIN No.ITBA/AST/S/156/2024- 25/1074973379(1) issued by the 1st Respondent under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2023-24 (Annexure ‘B-2’) (v) Quashing the Impugned Show Cause Notice for Penalty dated 26.03.2025 bearing DIN No. ITBA/PNL/F/270A/2024-25/1075046576(1) issued by the 1st Respondent under Section 270A of the Income-Tax Act, 1961 for the Assessment Year 2023- 24 (Annexure ‘L’); (vi) Direct the concerned first appellate authority/Respondent No.3 to adjudicate and dispose off Appeals for the Assessment Year 2023-24, e-filed by the Petitioner Vide E-Acknowledgment No.9361563301600425 (Annexure ‘M-1’) as expeditiously as possible and in accordance with law; (vii) Direct Respondent no.2 to not take any coercive steps to recover the Demand raised in the Impugned Assessment Order dated 25.03.2025 bearing DIN No.ITBA/AST/S/143(3)/2024-25/1074973354(1) for the Assessment Year 2023-24 (Annexure ‘B’) till the disposal of the Appeals before the 3rd Respondent. (viii) Pass such order or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case, and in the interest of justice and equity.” - 4 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. After arguing the matter for sometime, learned counsel for the petitioner submits that aggrieved by the impugned assessment order, the petitioner has already filed appeals which are pending before the First Appellate Authority. It is submitted that the petitioner has raised various grounds and contentions including want of / lack of jurisdiction and the present petition may be disposed of directing the Appellate Authority to dispose of the appeal in accordance with law bearing in mind the following judgments: (i) Mr. Raj Patel Vs. Additional/Joint/Deputy Commissioner and another in Writ Petition No.25147/2022 (Karnataka High Court), decided on 27.07.2023 – vide Annexure-V. (ii) Writ Petition No.13675/2022 (DB-Telangana High Court) – vide Annexure-W. (iii) Gurgaon Realtech Ltd. Vs. National Faceless Assessment Centre Delhi, reported in (2021) 127 taxmann.com726 (Delhi) vide Annexure-X. 4. Per contra, learned counsel for the respondent submits that the present petition may be disposed of directing the First - 5 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 Appellate Authority to dispose of the pending appeal filed by the petitioner in accordance with law. 5. Though several contentions have been urged by both sides in support of the respective claim, having regard to the undisputed fact, that the appeal filed by the petitioner is pending in both the First Appellate Authority, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of this petition directing the First Appellate Authority to dispose of the appeal in accordance with law as expeditiously as possible bearing in mind the following judgments: (iv) Mr. Raj Patel Vs. Additional/Joint/Deputy Commissioner and another in Writ Petition No.25147/2022 (Karnataka High Court), decided on 27.07.2023 – vide Annexure-V. (v) Writ Petition No.13675/2022 (DB-Telangana High Court) – vide Annexure-W. (vi) Gurgaon Realtech Ltd. Vs. National Faceless Assessment Centre Delhi, reported in (2021) 127 taxmann.com726 (Delhi) vide Annexure-X. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. - 6 - HC-KAR NC: 2025:KHC:42598 WP No. 31341 of 2025 (ii) The Appellate Authority shall dispose of the appeal within a period of three months from the date of receipt of a copy of this order, in accordance with law, bearing in mind the aforesaid judgments, grounds and contentions urged by the petitioner. (iii) Liberty is reserved in favour of the petitioner to submit relevant documents, pleadings etc., before the concerned respondents, who shall consider the same, provide sufficient opportunity, hear the petitioner and thereafter, proceed further, in accordance with law. (iv) It is further directed that, respondents shall not take any precipitative / coercive steps against the petitioner till disposal of the appeal by the Appellate Authority. (v) Further, the impugned letter dated 02.09.2025 at Annexure-A and the impugned show-cause notice at Annexure-L dated 26.03.2025 issued by respondent No.1 shall also remain in abeyance till disposal of the appeal. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 17