- 1 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 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. 7481 OF 2025 (T-IT) BETWEEN: 1. M/S SHIVALAYA TRUST REPRESENTED BY ITS SECRETARY, SMT. K.R. USHA, WIFE OF LATE SRI. H.S. NAGABHUSHANA, NO. 2970, K.R. ROAD, BSK 2ND STAGE, BENGALURU - 560 070 …PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, REP. BY ADDL/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 INCOME TAX OFFICER (EXEMPTIONS), WARD - 3, UNITY BUILDING ANNEXE, P KALINGA RAO ROAD (MISSION ROAD), BENGALURU - 560 027 …RESPONDENTS (BY SRI. ARAVIND V. CHAVAN, ADVOCATE) Digitally signed by SHARADAVANI B Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER DATED 31.01.2024 PASSED UNDER SECTION 143(3) RWS 260 RWS 144B OF THE ACT FOR THE ASSESSMENT YEAR 2020-21 BY THE R-1 BEARING DIN NO. ITBA/AST/S/143(3)/2023-24/1060350685(1) HEREIN MARKED AS ANNX-A1. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: "Wherefore it is prayed that this Hon'ble Court be pleased to: i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 31.01.2024 passed under section 143(3) rws 260 rws 1448 of the Act for the assessment year 2020-21 by the Respondent No.1 bearing DIN No. ITBA/AST/S/143(3)/2023-24/1060350685(1) 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 31.01.2024 issued by the Respondent No.1 bearing DIN & Document No.ITBA/AST/S/88/2023-24/1060350731(1) herein marked as Annexure A2. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice of demand issued under section 156 of the Act dated 31.01.2024 bearing DIN & Notice No. ITBA/AST/S/156/2023- 24/1060350732(1) herein marked as Annexure - АЗ. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 24.06.2024 issued under section 270A of the Act bearing - 3 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 DIN No. ITBA/PNL/F/270A/2024-25/1065949390(1) herein marked as Annexure A4. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 24.06.2024 issued by the Respondent No.1 bearing DIN & Order No. ITBA/PNL/S/270A/2023-24/1060350769(1) herein marked as Annexure - A5. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice of demand issued by the Respondent No.1 under section 156 of the Act dated 24.06.2024 bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1065945429(1) herein marked as Annexure - A6. vii) 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. 2. Heard learned counsel for the parties and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that notice issued by the respondents under Section 142(1) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 03.01.2024 was received by - 4 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 petitioner and filed its part reply on 08.01.2024. Subsequently, the 1st Respondent passed the impugned order dated 31.01.2024 under section 142(3) r.w.s. 260 r.w.s. 1414B of the Act before the petitioner could file his full reply to the aforesaid notice. It is submitted by the counsel for the petitioner that the petitioner was not given an opportunity to give full reply to the aforesaid notice which resulted in the impugned order. It is submitted that the inability and omission on the part of the petitioner to submit full reply / response along with documents to the Section 142(1) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed 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 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 5. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has submitted part reply / response along with documents to Section 142(1) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply fully along with documents to Section 142(1) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – A1 dated 31.01.2024, passed under 142(3) r.w.s. 260 r.w.s. 1414B of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to section 142(1) notice and to proceed further in accordance with law. 6. In the result, pass the following: - 6 - HC-KAR NC: 2025:KHC:41830 WP No. 7481 of 2025 ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures A1, A2, A3, A4, A5, A6 are hereby set aside. (iii) Matter is remitted back to respondent No. 1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 142(1) of the IT Act dated 03.01.2024. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Bsv CT-SG List No.: 2 Sl No.: 8