- 1 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 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. 17675 OF 2021 (T-IT) BETWEEN: SINGAYANAPALYA ANJINAPPA PUTTARAJU S/O SRI P. ANJINAPPA, AGED 58 YEARS, NO.12, SAVIRAJ MANSION, MAHESHWARI NAGAR, MAHADEVAPURA, BENGLAURU – 560 048 …PETITIONER (BY SRI. A. SHANKAR, SENIOR COUNSEL FOR SRI. ANNAMALAI S., ADVOCATE) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE REP. BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME-TAX/INCOME-TAX OFFICER, INCOME-TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP JAWARHALAL NEHRU STADIUM DELHI – 110 003 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(1)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560 095 …RESPONDENTS (BY SRI. RAVI RAJ Y. V., & SRI. M. DILIP, ADVOCATES) THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE R1 U/S 14393) R/W SECTION 144B OF THE Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 INCOME-TAX ACT, 1961 DATED 09.08.2021 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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 and direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent No.1 under section 143(3) read with section 144B of the Income-tax Act, 1961 dated 09.08.2021 for the assessment year 2018-19 herein marked as Annexure-A1. ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Computation sheet passed by the Respondent No.1 for the assessment order passed under section 143(3) read with section 144B of the Income-tax Act, 1961 dated 09.08.2021 for the assessment year 2018-19 herein marked as Annexure-A2. iii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of demand issued under section 156 of the Income-tax Act, 1961 dated 09.08.2021 for the assessment year 2018-19 for a sum of Rs.21,70,81,315/- herein marked as Annexure-A3. - 3 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 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 both parties and perused the material on record. 3. A perusal of the material on record will indicate that on 23.04.2021 respondent No.1 issued show-cause notice along with draft Assessment Order calling upon the petitioner to submit reply/response on or before 26.04.2021, i.e., within three days and lesser than the stipulated period of seven days as per the Standard Operating Procedure (SOP). Though the petitioner submitted a reply to the said show-cause notice, the respondents issued one more notice dated 07.08.2021 and without providing an opportunity to the petitioner to submit reply, proceeded to pass the impugned order, which is assailed in the present petition. 4. In the case of Bangalore Metro Rail Corporation Limited Vs. Assessment Unit, Income Tax Department and another - W.P.No.33047/2025 dated 03.11.2025, in relation to non-compliance of the period of seven days as per the SOP, this Court held as under: - 4 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 In this petition, the petitioner seeks the following reliefs: " i. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 15.01.2025 issued by the Respondent No.1 for the assessment year 2023-24 DIN bearing ITBA/AST/F/144(SCN)/2024-25/1072178455(1) herein marked as Annexure 'A'. ii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 06.03.2025 passed by the Respondent No. 1 under Section 144 read with Section 144B of Act for the assessment year 2023-24 bearing DIN No. ITBA/AST/S/144/2024-25/1074120505(1) herein marked as Annexure 'A1'. iii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 06.03.2025 issued by the Respondent No. 1 bearing DIN No. ITBA/AST/S/723/2024-25/1074120542(1) herein marked as Annexure 'A2'. iv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice issued under Section 156 of the Act dated 06.03.2025 issued by Respondent No. 1 bearing DIN No. ITBA/AST/S/156/2024-25/10741206.30(1) herein marked as Annexure 'A3'. v. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice issued under Section 274 read with 271AAC(1) dated 06.03.2025 issued by Respondent No. 1 bearing DIN ITBA/PNL/S/271AAC(1)/2024-25/1074120779(1) herein marked as Annexure 'A4'. vi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice issued under Section 274 read with 272A(1)(d) dated 06.03.2025 issued by Respondent No. 1 bearing DIN ITBA/PNL/S/272A(1)(d)_FL/2024-25/1074117084(1) herein marked as Annexure 'A5'. vii. And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.” - 5 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 2. Heard learned counsel for the petitioner and learned counsel for respondents and perused the materials 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 show cause notice dated 27.01.2025 in order to point out that the said notice stipulate the period of less than 07 days since the petitioner has been called upon to submit his reply on 31.01.2025 at 11.15 am, which is less than stipulated period of 07 days as contained in the Standard Operating Procedure applicable to the impugned show cause notice. It is submitted that in the light of the Order of the Co- ordinate Bench of this Court in the case of Shri. Chowdapally Dattaprakash Ajay vs. Central Board of Direct Taxes and others - W.P.No.12923/2023 dated 06.07.2023, the impugned Assessment order at Annexure - A1 deserves to be set aside and the matter be remitted back to the concerned respondents from the stage of petitioner submitting its reply to the show cause notice dated 27.01.2025 and to proceed further in accordance with law. 4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed. 5. In Chowdappally’s case supra, the co- ordinate Bench of this Court held as under: - 6 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 "The petitioner has sought for setting aside of the assessment order dated 19.05.2023 passed by respondent No.2 under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short, 1961 Act') at Annexure-A1, setting aside of the computation sheet at Annexure-A2, setting aside of the notice of demand at Annexure-A3 and has also sought for setting aside of the penalty notice at Annexure-A4. The petitioner has also sought for setting aside of the notice under Section 148 of 1961 Act at Annexure-B1, setting aside of notice under Section 148A(b) of 1961 Act at Annexure-B2, setting aside of notice under Section 148A(d) of 1961 Act at Annexure-B3 and the notice under Section 148 of 1961 Act at Annexure-B4. The petitioner has also sought for setting aside the Instruction bearing No.1/2022 dated 11.05.2022 at Annexure-C. 2. Learned counsel for the petitioner submits that the assessment order is liable to be set aside on the sole ground of violation of principles of natural justice as the show cause notice at Annexure-J was issued on 10.05.2023 seeking for reply before 15.05.2023, which time for response is contrary to the SOP applicable for faceless assessment, copy of which is produced at Annexure-T. 3. Attention is drawn to Clause N.1.3 which observes that the time for response to a show cause notice ought to be 7 days from the issue of show cause notice. He submitted that in the assessment order it was observed that there was no reply to the show cause notice and the Assessing Officer has proceed without any reply from the petitioner. It is submitted that in the light of the inadequate time that is available to make out a response which time limit is contrary to the SOP relating to time to be given for response to the show cause notice, it is submitted that the assessment order may be set aside and fresh opportunity may be accorded to the petitioner to make out reply to the show cause notice. 4. Perused the show cause notice at Annexure-J. 5. It is clear that the notice has been issued on 10.05.2023 by 18.14 hours. The response was directed to be made by 15.05.2023. The time that is stipulated for response is in clear violation of the applicable SOP at Clause N.1.3 which requires that at least 7 days time to be given for the purpose of making out a response. 6. It is clear that the plea of prejudice caused to the petitioner and violation of principles of natural justice is a - 7 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 contention that requires acceptance. Accordingly, on the sole ground, the matter is remanded to the stage post show cause notice at Annexure-J dated 10.05.2023. The petitioner is at liberty to make out his reply to the show cause notice at Annexure-J and the Authority to afford all opportunities as is permissible under the law to complete the proceedings. All contention of the petitioner are kept open. 8. Learned counsel for the petitioner submits that the aspect of limitation is also to be kept open. Said submission of the petitioner is taken note of. Accordingly, Annexures-A1 to A4 are set aside. The matter is disposed off subject to the above observations." 6. In the instant case, a perusal of the show cause notice would indicate that the same was issued on 27.01.2025 calling upon the petitioner to submit its reply on or before 11.15 am on 31.01.2025, which is less than 07 days from the date of issuance of a show cause notice and the same being violative of standard operative procedure as held by the Co-ordinate Bench of this Court in the aforesaid case, I am of the considered opinion that the impugned assessment order and further notices deserve to be set aside and the matter be remitted back to the concerned respondent for reconsideration afresh from the stage of issuing show cause notice in accordance with law. 7. In the result, pass the following: ORDER (i) Petition is allowed. (ii) The impugned orders / Notices at Annexures – A1, A2, A3, A4, B2, B2, B3 and B4 passed / issued by the respondents are hereby set aside. - 8 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 (iii) Matter remitted back to the stage of petitioner submitting reply/additional reply to the notice dated 27.01.2025 issued by respondents with liberty to file additional pleadings, documents etc., which shall be considered by the concerned respondents after providing sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law.” 5. In the instant case, a perusal of the impugned show- cause notice at Annexure-M dated 23.04.2021 will indicate that it stipulates a period less than seven days and consequently, the show-cause notice and all further proceedings pursuant thereto including the assessment order deserves to be quashed and the matter is remitted back to the petitioner to submit reply to the show- cause notice and proceed further, in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is allowed. (ii) The impugned assessment order at Annexure-A1, the impugned computation sheet at Annexure-A2 and the impugned demand notice at Annexure- A3, all dated 09.08.2021, are hereby quashed. - 9 - HC-KAR NC: 2025:KHC:48824 WP No. 17675 of 2021 (iii) The matter is remitted back to the stage of petitioner submitting additional reply to the show- cause notice dated 23.04.2024 at Annexure-M and proceed further, in accordance with law. (iv) All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 72