- 1 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 12184 OF 2025 (T-IT) BETWEEN: KAWASAKI MANUFACTURING (INDIA) PRIVATE LIMITED PLOT NO.276P2 AND 277P2, 2ND PHASE, (INCORPORATION U/S COMPANIES ACT RULES 2014) HAROHALLI INDUSTRIAL AREA, HAROHALLI S.O. HAROHALLI, RAMANAGAR - 562 112. REPRESENTED HEREIN BY ITS MANAGING DIRECTOR MASAKAZU MATSUURA PAN NO. AALCA2115Q …PETITIONER (BY SRI.TANMAYEE RAJKUMAR, ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME-TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. 2. DEPUTY/ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 4(3)(1), BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BANGALORE - 560 095. 3. PRINCIPAL COMMISSIONER OF INCOME-TAX - 2 BMTC BUILDING, 6TH BLOCK, 80 FEET ROAD, KORAMANGALA, BANGALORE - 560 095. …RESPONDENTS Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 (BY SRI.E.I. SANMATHI, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER DATED 19.03.2025 (ANNEXURE- D) BEARING DIN ITBA/AST/S/143(3)/2024-25/1074701396(1) PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2022-23 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioner is before this Court seeking for the following reliefs: i. “quashing the order dated 21.03.2025 (Annexure - D) bearing DIN ITBA/ AST/S/143(3)/2024- 25/1074834919(1) passed by the 1st Respondent for the assessment year 2022-23; ii. quashing the notice dated 21.03.2025 (Annexure - E) bearing DIN ITBA/AST/S/156/2024- 25/1074835023(1) issued by the 1st Respondent for the assessment year 2022-23; iii. quashing the notice dated 21.03.2025 (Annexure - F) bearing DIN ITBA/PNL/S/270A/2024- 25/1074835169(1) issued by the 1st Respondent for the assessment year 2022-23; iv. pass such other or further orders as this Hon'ble Court may deem fit in the facts and circumstances of the case, in the interests of justice and equity. - 3 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 2. The petitioner being involved in the business of manufacturing components for the automobile industry. There being an issue in relation to transfer pricing, the Transfer Pricing Officer had passed an order under Section 92CA(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for short) on 10.01.2025 raising a demand on the petitioner. 3. A draft assessment order was passed under Section 144C of the Act on 14.02.2025. The petitioner, within the time frame prescribed under Section 144C(2) of the Act, had objected to the price adjustment in the draft assessment order and had filed the objections before the Dispute Resolution Panel (hereinafter referred to as ‘DRP’ for short) on 14.03.2025. 4. The petitioner, however, had failed to inform the assessing officer about the said filing of the objections. Hence, the Assessing Officer went ahead with passing of the impugned assessment order. - 4 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 5. The submission of learned counsel for the petitioner is that the issue in the above matter is covered by the decision of the Co-ordinate Bench of this Court in ZOOMRX HEALTHCARE TECHNOLOGY SOLUTIONS (P) LTD., v. ADDITIONAL/JOINT/ DEPUTY/ASSTT.CIT(NFAC)1 inasmuch as the non-information to the Assessing Officer would not take away the objections which had been filed before the DRP, and as such, the Assessing Officer ought to have awaited the resolution of the decision of the DRP. 6. Sri E.I.Sanmathi, learned counsel for the respondents would submit that it was the requirement of the petitioner to have informed the Assessing Officer of having filed the objections before the DRP. The petitioner not having informed the Assessing Officer, the Assessing Officer has rightly 1 (2024) 163 TAXMANN.COM 747 (KARNATAKA) - 5 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 passed the order not being in knowledge of the objections filed by the petitioner before the DRP. 7. On enquiry with Sri E.I. Sanmathi, learned counsel for the respondents as to whether the filing of any objections or the like as regards to a particular action taken under the Income Tax Act would be made available to the knowledge of all the other Authorities concerned in relation thereto. 8. He submits that these objections being filed physically, the same would have to be physically intimated to the Assessing Officer and no system is available. 9. If that be so, it would be for the Chief Commissioner of Income Tax to look into this matter and implement a system which would cater to such a requirement, such that, in cases of this kind, the objections filed before the DRP would have been made knowledgeable to the Assessing Officer so as to stay - 6 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 the hands of the Assessing Officer and not pass the orders pending the decision of the DRP. 10. The Chief Commissioner (International Taxation) to file an affidavit in that regard within four weeks from today. 11. In view of the decision of the Co-ordinate Bench of this Court in ZoomRx’s case referred to supra, I pass the following: ORDER. i) The writ petition is allowed. ii) The order bearing DIN ITBA/AST/S/143(3)/ 2024-25/1074834919(1) dated 21.03.2025 passed by respondent No.1 at Annexure-D and the notice dated 21.03.2025 issued by respondent No.1 at Annexure-E and F, are hereby quashed. - 7 - HC-KAR NC: 2025:KHC:24346 WP No. 12184 of 2025 iii) The matter is remitted to the first respondent, who shall pass necessary orders after the Dispute Resolution Panel were to decide the issue. iv) Thus, the above petition is directed to re-list on 18.08.2025 to report compliance. SD/- (SURAJ GOVINDARAJ) JUDGE KTY List No.: 2 Sl No.: 20