- 1 - HC-KAR NC: 2025:KHC:52177 WP No. 36868 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 36868 OF 2025 (T-IT) BETWEEN: SMT NIRMALA, W/O LATE B. MUNISWAMAPPA, AGE ABOUT 56 YEARS # 1/113B, BOMMASANDRA VILLAGE, NEAR MARIYAMMAN TEMPLE, ATTIBELLE HOBLI, ANEKAL TALUK, BENGALURU – 560 099 KARNTAKA, INDIA. PAN: ASZP5713E …PETITIONER (BY SMT. SUMANTH SUDHARSHAN FOR SRI. ANNAMALAI S., ADVOCATES) AND: THE DEPUTY COMMISSIONER OF INCOME TAX INCOME TAX, CENTRAL CIRCLE -3(1), CENTRAL REVENUE BUILDING, QUEEN’S ROAD, BENGALURU – 560 001. …RESPONDENT (BY SRI. M DILIP, ADVOCATE) THIS W.P. IS FILED UNDER SECTION 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PENALTY ORDER PASSED UNDER SECTION 270A OF THE ACT DATED 23.09.2025 BEARING DIN.ITBA/PNL/F/270A/2025-26/1081082110(1) PASSED BY THE RESPONDENT FOR THE AY 2019-20 HEREIN MARKED AS ANNX-A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:52177 WP No. 36868 of 2025 CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks for the following reliefs:- “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quash the penalty order passed under Section 270A of the Act dated 23.09.2025, bearing DIN: ITBA/PNL/F/270A/2025-26/1081082110(1), passed by the Respondent for the AY 2019-20 herein marked as Annexure – A1. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 23.09.2025 bearing DIN and Order No. ITBA/PNL/S/ 270A/2025-26/1079282522(1) issued by the Respondent for the AY 2019-20 herein marked as Annexure – A2. iii) Issue a Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 23.09.2025 u/s 156 of the Act bearing DIN and Notice No.ITBA/PNL/S/156/2025-26/1081079436(1) issued by the Respondent for the AY 2019-20 herein marked as Annexure – A3. 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 counsel for the petitioner, learned counsel for the respondent and perused the material on record. - 3 - HC-KAR NC: 2025:KHC:52177 WP No. 36868 of 2025 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that aggrieved by the Assessment Order dated 06.03.2025 passed by the respondent for the Assessment Year 2019-20, the petitioner filed an appeal on 20.06.2025. It is the grievance of the petitioner that despite pendency of the appeal before the Appellate Authority, the respondent has proceeded to issue penalty notice and show-cause notice followed by the impugned penalty order and demand notice, which are assailed in the present petition inter alia contending that since the appeal was pending, it would be necessary to keep the penalty order and demand notice in abeyance till disposal of the appeal as held by this Court in the case of Mr. B.S. Uday Shetty Vs. The Assistant Commissioner of Income Tax - W.P.No.8585/2022 dated 21.04.2022. 4. Per contra, learned counsel for the respondent submits that even the impugned penalty order is appealable order and as such, keeping the penalty order and demand notice in abeyance till disposal of the appeal would not arise in the facts and - 4 - HC-KAR NC: 2025:KHC:52177 WP No. 36868 of 2025 circumstances of the instant case and as such, there is no merit in the present petition and the same is liable to be dismissed. 5. A perusal of Section 275 of the I.T. Act will indicate that there is clear embargo/bar on proceeding to pass penalty order if an appeal is pending on the Assessment Order. As rightly contended by the learned counsel for the petitioner in B.S. Uday Shetty’s case (supra), under identical circumstances, where the petitioner-Assessee filed an appeal against the Original Assessment Order, this Court came to the conclusion that till disposal of the appeal filed by the Assessee, it is necessary to keep the penalty order and notice in abeyance. In view of the aforesaid facts and circumstances and the judgment of this Court in B.S. Uday Shetty’s case (supra), rendered under identical circumstances, the present petition also deserves to be disposed of keeping penalty order and demand notice in abeyance, till disposal of the appeal filed by the petitioner. 6. In the result, I pass the following: ORDER i. The Writ Petition is allowed. Retyped and replaced vide Court order dated 20.01.2026 - 5 - HC-KAR NC: 2025:KHC:52177 WP No. 36868 of 2025 ii. The impugned penalty order, computation sheet and demand notice all dated 23.09.2025, at Annexures-A1 to A3, respectively are hereby quashed; iii. The notice dated 06.03.2025 at Annexure-B4 is kept in abeyance till disposal of the appeals filed by the petitioner; iv. Liberty is reserved in favour of the respondent to proceed further upon disposal of the appeal filed by the petitioner. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 23 Retyped and replaced vide Court order dated 20.01.2026