- 1 - HC-KAR NC: 2025:KHC:41875 WP No. 11784 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 11784 OF 2024 (T-IT) BETWEEN: SRI VENKATESWARA DEVELOPERS REPRESENTED BY ITS MANAGING PARTNER, SRI A.V. E.ADITHYA REDDY, AGED ABOUT 32 YEARS, S/O SRI VIJAYA KUMAR REDDY, NO.51, LE PARC RICHMONDE, RICHMOND ROAD, RICHMOND TOWN, BENGALURU-560 025. …PETITIONER (BY SRI. ANNAMALAI S.,ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, 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, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 7 (1)(1) 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU – 560 095. …RESPONDENTS (BY SRI. E.I.SANMATHI AND SRI. M. DILIP, ADVOCATES) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) RWS 144B READ OF THE ACT DATED 29/03/2024 BEARING DIN NO. ITBA/AST/S/143(3)/2023- 24/1063634451(1) ISSUED BY THE R1 FOR THE ASSESSMENT YEAR 2022- 23 HEREIN MARKED AS ANNEXURE-A1. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:41875 WP No. 11784 of 2024 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 dirction in the nature of a writ of certiorari quashing the assessment order passed under Section 143(3) rws 144B of the Act dated: 29/03/2024 bearing DIN No.ITBA/AST/S143(3)/2023-24/1063634451(1) issued by the Respondent No.1 for the assessment year 2022-23 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 29/03/2024 bearing DIN & Document No. ITBA/AST/S/522/2023-24/1063634571(1) issued by the Respondent No. 1 for the assessment year 2022-23 herein marked as Annexure A2. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 29/03/2024 Issued under section 156 of the Act bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1063634532(1) issued by the Respondent No. 1 for the assessment year 2022-23 herein marked as Annexure - A3. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 29/03/2024 issued under section 274 r/w S.270A of the Act bearing DIN No. ITBA/PNL/S/270A/2023-24/1063634505(1) - 3 - HC-KAR NC: 2025:KHC:41875 WP No. 11784 of 2024 issued by the Respondent No. 1 for the assessment year 2022-23 herein marked as Annexure - A4. v) 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 parties 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 reply dated 22.12.2023 at Annexure-E to point out that pursuant to the show-cause notice dated 11.12.2023 issued by the 1st respondent, the petitioner filed the aforesaid reply to the said show-cause notice. Thereafter, the 1st respondent again issued a show cause notice dated 10.03.2024 calling upon the petitioner to submit his reply, to which the petitioner appeared through video conference and made his submissions. Again on 22.03.2024, the 1st respondent issued another show cause notice, to which, the petitioner submitted his reply dated 25.03.2024 requesting for personal hearing. However, the 1st respondent passed an Assessment order dated 29.03.2024 under Section 143(3) r/w Section 144B of the I.T. Act. It is - 4 - HC-KAR NC: 2025:KHC:41875 WP No. 11784 of 2024 therefore submitted that though the petitioner has submitted his reply and requested for an opportunity of personal hearing, the 1st respondent failed to consider the same and passed the impugned order, thereby violating principles of natural justice and as such, the petitioner is before this Court by way of present petition. 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 dismissed. 5. A perusal of the impugned order will indicate that the petitioner filed its reply dated 25.03.2024 to the notice issued by the petitioner dated 22.03.2024. It is also borne out from the impugned order dated 29.03.2024 that the 1st respondent has not considered the reply dated 25.03.2024 filed by the petitioner and has proceeded to pass the impugned order. Under these circumstances, I am of the considered opinion that the impugned notices, proceedings culminating in the impugned penalty order is violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting a justice oriented approach and by directing the 1st respondent to consider - 5 - HC-KAR NC: 2025:KHC:41875 WP No. 11784 of 2024 the reply dated 25.03.2024filed by the petitioner and thereafter proceed further in accordance with law. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned Assessment order at Annexure-A1 dated 29.03.2024 passed by the 1st respondent and subsequent notices/orders are hereby set aside. (iii) The matter is remitted back to the 1st respondent for reconsideration afresh in accordance with law from the stage of considering the reply date 25.03.2024 filed by the petitioner. (iv) Liberty is reserved in favour of the petitioner to submit his response/reply along with the documents to the 1st respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Srl.