- 1 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 18395 OF 2025 (T-IT) BETWEEN: VIJAY KUMAR AGED 52 YEARS, S/O LATE BIRENDRA PRASAD SHARMA, NO.3475, GOLFVIEW DRIVE, APT #06, EAGAN, MN 55123 999999, FOREIGN, UNITED STATES. PRESENTLY RESIDING AT NO.265/1, 17TH F MAIN, KHB COLONY, 5TH BLOCK, KORAMANGALA, BANGALORE – 560 095, PAN: AJOPK7151R …PETITIONER (BY SRI. RAVI SHANKAR S. V., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD INTL, TAXATION 1(2) BANGALORE – 560 095 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, (IT), OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION), ROOM NO 356, C.R. BUILDING, IP ESTATE, NEW DELHI – 110 002 …RESPONDENTS (BY SRI. E. I. SANMATHI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 CERTIORARI QUASHING THE NOTICE UNDER SECTION 148A(B) OF THE ACT, DATED 26/03/2022 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2021-22/1041691837(1), ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS 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, petitioner seeks for the following reliefs:- “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act, dated 26/03/2022 bearing DIN No.ITBA/AST/F/148A(SCN)/2021-22/1041691837(1), issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act, dated 19/04/2022, bearing DIN No.ITBA/AST/F/148A/2022-23/1042779543(1) passed by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A1. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 19/04/2022 bearing DIN No. ITBA/AST/S/148 1/2022-23/1042783555(1) issued by the Respondent No.1 for the assessment year 2015- 16 herein marked as Annexure - A2. - 3 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the draft assessment order passed Under section 144C dated 28/11/2023 bearing DIN No. ITBA/AST/F/144C/2023-24/1058282790(1) passed by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed Under section 147 r.w.s 144 dated 29/01/2024 bearing DIN No.ITBA/AST/S/147/2023-24/1060205955(1) passed by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271F of the Act dated 19/07/2024 bearing DIN No. ITBA/PNL/F/271F/2024-25/1066866668(1), issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure A5. vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271(1)(b) of the Act dated 24/07/2024 bearing DIN No.ITBA/PNL/F/271(1)(b)/2024-25/ 1066960484(1), issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure A6. viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under - 4 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 Section 271(1)(c) of the Act dated 24/07/2024 bearing DIN No.ITBA/PNL/F/271(1)(c)/2024- 25/1066960288(1), issued by the Respondent No.1 for the assessment year 2015-16 herein marked as Annexure - A7. ix) 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 both parties and perused the material on record. 3. A perusal of the material on record will indicate that the impugned notice under Section 148 of the I.T. Act, dated 19.04.2022 in relation to the assessment year 2015-16 is barred by limitation as held by this Court in the case of Mohammed Yaseen Vs. Income-tax Officer – W.P.No.26080/2024 Dated 17.04.2025, wherein it is held as under: “In this petition, the petitioner seeks for the following reliefs: (i) Quashing the undated, unsigned impugned Order bearing no Document Identification Number passed by Respondent No.1 under Section 148(d) of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure’A- 1); (ii) Quashing the impugned notice bearing DIN and Notice No. ITBA/ AST/ S/148_1/ 2022-23/ - 5 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 1042426411(1) dated 01.04.2022 issued by Respondent No.1 under Section 148 of the Income-tax Act, 1961 for the Assessment year 2015-16 (Annexure ‘A-2’); (iii) Quashing the impugned Notice dated 15.03.2022 bearing DIN and Notice No.ITBA/AST/F/148A(SCN)/ 2021- 22/104768406(1) issued by Respondent No.1 under Section 148A(b) of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure ‘B’); (iv) Quashing the impugned Assessment Order bearing DIN & Order No.ITBA/AST/S/147/2023-24/ 1062316215(1) dated 09.03.2024 passed by Respondent No.1 under Section 147 read with Section 144 of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure “C-1’); (v) Quashing the impugned computation sheet bearing DIN & Document No.ITBA/AST/S/114/2023-24/ 1062316308(1) dated 09.03.2024 issued by Respondent No.1 for the Assessment Year 2015-16 (Annexure-‘C-2); (vi) Quashing the impugned Notice of Demand bearing DIN & Notice No. ITBA/ AST/S/ 156/ 2023-24/ 1062316330(1) dated 09.03.2024 issued by Respondent No.1 under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure ‘C-3’); (vii) Quashing the impugned penalty Order bearing DIN No. ITBA/ PNL/F/ 271(1)(c)/ 2024-25/ 1068037937(1) dated 27.08.2024 passed by Respondent No.1 under Section 271(1)(c) of the Income-tax Act, 196, for the Assessment Year 2015-15 (Annexure ‘D-1’); (viii) Quashing the impugned computation sheet bearing DIN & Document No.ITBA/PNL/S/271(1)(c)/20 23- 24/1062316346(1) dated 27.08.2024 issued by Respondent No.1 for the Assessment Year 2015-16 (Annexure ‘D-2’); - 6 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 (ix) Quashing the impugned Notice of Demand bearing DIN & Notice No. ITBA/ PNL/S/ 156/ 2024-25/ 1068037718(1) dated 27.08.2024 issued by Respondent No.1 under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure ‘D-3’); (x) Quashing the impugned Penalty Order bearing DIN No.ITBA/PNL/F/271F/2024- 25/1068065687(1) dated 27.08.2024 passed by Respondent No.1 under Section 271F of the Income-tax Act, 1961, for the Assessment Year 2015-15 (Annexure ‘E-1’); (xi) Quashing the impugned computation sheet bearing DIN & Document No. ITBA/ PNL/S/ 271F/ 2023-24/ 1062316032(1) dated 27.08.2024 issued by Respondent No.1 for the Assessment year 2015-16 (Annexure ‘E-2’); (xii) Quashing the impugned Notice of Demand bearing DIN & Notice No. ITBA/ PNL/ S/ 156/ 2024-25/ 1068065323(1) dated 27.08.2024 issued by Respondent No.1 under Section 156 of the Income-tax Act, 1961 for the Assessment Year 2015-16 (Annexure ‘E-3’) and (xiii) Pass such order that Hon’ble Court, may seem fit, in the facts and circumstances of the case, and in the interest of justice and equity. 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned orders and notices in order to point out that the proceedings relating to the assessment year 2015-16, the - 7 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 notice under Section 148 of the I.T.Act ought to have been issued on or before 31.03.2021 and any notice issued after the aforesaid date including the instant notice issued on 01.04.2022 was barred by limitation as held by the Apex Court in the case of Union of India & others vs.Rajeev Bansal - (2024) 469 ITR 46 (SC) and subsequently followed by the Apex Court in the case of Assistant Commissioner of Income Tax & others vs. Nehal Ashit Shah – SLP (Civil) Diary No.(S) – 57209/2024 Dated 04.04.2025. It is therefore submitted that the impugned orders/ Notices deserve to be quashed. 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 set aside. 5. As rightly contended by the learned counsel for the petitioner, the material on record discloses that the impugned proceedings is relating to the Assessment Year 2015-16 in respect of the petitioner; however, it is an undisputed fact that the respondents issued impugned notice at Annexure-A2 under Section 148 of the I.T.Act on 01.04.2022, beyond the period of limitation and the same has already been held not to be permissible by the Apex Court in Rajeev Bansal’s case supra, which reads as under:- “19(e). The Finance Act, ([2021]) 431 ITR (St.) 52) substituted the old regime for reassessment with a new regime. The first proviso to Section 149 does not expressly bar the application of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Section 3 of Taxation and Other Laws (Relaxation and Amendment of - 8 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 Certain Provisions) Act, 2020 applies to the entire Income-Tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to assessment years 2013-14, 2014-15, 2015-16, 2016-17, and 2017-18 will be within the period of limitation as explained in the tabulation below: Assessment year (1) Within 3 years (2) Expiry of limitation read with TOLA for (3) Within six years (4) Expiry of limitation read with TOLA for (4) (5) 2013-2014 31-3-2017 TOLA not applicable 31-3-2020 30-6-2021 2014-2015 31-3-2018 TOLA not applicable 31-3-2021 30-6-2021 2015-2016 31-3-2019 TOLA not applicable 31-3-2022 TOLA not applicable 2016-2017 31-3-2020 30-06-2021 31-3-2023 TOLA not applicable 2017-2018 31-3-2021 30-06-2021 31-3-2024 TOLA not applicable 19(f). The Revenue concedes that for the assessment year 2015-16, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020; 49. The first proviso to Section 149(1)(b) requires the determination of whether the time limit prescribed under Section 149(1)(b) of the old regime continues to exist for the assessment year 2021-22 and before. Resultantly, a notice under Section 148 of the new regime cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice. This also ensures that the new time limit of ten-years prescribed under Section 149(1)(b) of the new regime applies prospectively. For example, for the assessment year 2012-13, the ten-year period would have expired on March 31, 2023, while the six- year period expired on March 31, 2019. Without the proviso to Section 149(1)(b) of the new regime, the Revenue could have had the power to reopen assessments for the year 2012-13 if the escaped assessment amounted to Rupees fifty lakhs or more. The proviso limits the retrospective operation of Section 149(1)(b) to protect the interests of the assesses. 6. Subsequently, in Nehal Ashit’s case supra also, the Apex Court reiterated the very same position and dismissed - 9 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 the appeal filed by the Revenue on the ground that the notice issued after 01.04.2022 was barred by limitation and the impugned proceedings are not permissible beyond period of limitation. In the instant case, it is an undisputed fact that the impugned proceedings is relating to the Assessment Year 2015- 16, while the impugned notice under Section 148 of the Act dated 01.04.2022 was issued beyond/after 01.04.2021 which is impermissible in law and barred by limitation and consequently, the impugned orders/notices etc., deserve to be quashed. 7. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned orders/Notices at Annexures-A1, A2, B, C1, D1 and E1 dated 01.04.2022, 01.04.2022, 15.03.2022, 09.03.2022, 27.08.2024 and 27.08.2024 respectively and subsequent orders/notices issued by the 1st respondent are hereby quashed.” 4. In the instant case, as stated supra, in relation to the assessment year 2015-16, the impugned notice under Section 148 of the I.T. Act dated 19.04.2022 is clearly barred by limitation and all further proceedings including the demand notice deserves to be quashed. 5. In the result, I pass the following: ORDER (i) The petition is allowed. - 10 - HC-KAR NC: 2025:KHC:48822 WP No. 18395 of 2025 (ii) The impugned orders/Notices at Annexures-A, A1, A2, A3, A4, A5, A6 and A7, dated 26.03.2022, 19.04.2022, 19.04.2022, 28.11.2023, 29.01.2024, 19.07.2024, 24.07.2024 and 24.07.2024, respectively and subsequent orders/notices are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 0