- 1 - HC-KAR NC: 2025:KHC:39716 WP No. 14069 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 14069 OF 2024 (T-IT) BETWEEN: XIAOMI H.K. LIMITED, A COMPANY INCORPORATED UNDER THE LAWS OF HONG KONG, HAVING ITS REGISTERED OFFICE AT SUITE NO.3209, 32/F, 15 CANTON ROAD TOWER 5, TSIM SHA KOWLOON THE GATEWAY, HARBOUR CITY – 1220021, HONG KONG REPRESENTED BY ITS AUTHORISED SIGNATORY MR. LIN EN. …PETITIONER (BY SMT. PRERNA PONAPPA, ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU – 560 001. 2. ADDITIONAL/JOINT COMMISSIONER OF INCOME TAX, CENTRAL RANGE - 2, CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:39716 WP No. 14069 of 2024 3. PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 4. UNION OF INDIA, THROUGH JOINT SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, ROOM NO.46, NORTH BLOCK, NEW DELHI - 110 011. EMAIL: jsrev@nic.in …RESPONDENTS (BY SRI Y.V.RAVIRAJ, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE BEARING NO. ITBA/AST/S/148_1/2023- 24/1060726259(1) DATED FEBRUARY 9, 2024 ISSUED UNDER SECTION 148 OF THE IT ACT FOR THE AY 2022-23 (ANNEXURE-A TO THE WRIT PETITION); QUASH THE APPROVAL BEARING NO.ITBA/AST/S/118/2023- 24/1060002922(1) DATED JANUARY 23, 2024 GRANTED UNDER SECTION 151 R.W.S. 148 OF THE IT ACT, BY THE THIRD RESPONDENT TO THE PROPOSAL FORWARDED BY THE FIRST RESPONDENT FOR INITIATING REASSESSMENT PROCEEDINGS FOR AY 2022-23 (ANNEXURE-B TO THE WP); HOLD THAT EXPLANATION 2 TO SECTION 148 AND THE PROVISO TO SECTION 148A OF THE IT ACT AS ULTRA VIRES AS THEY ARE IN VIOLATION OF ARTICLE 14 OF THE CONSTITUTION OF INDIA. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:39716 WP No. 14069 of 2024 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court seeking the following prayers: “A. Issue a writ of certiorari/or any other appropriate writ quashing the Impugned Notice bearing no.ITBA/AST/S/148_1/2023- 24/1060726259(1) dated February 9, 2024 issued under Section 148 of the IT Act for the AY 2022-23 (Annexure - A to the Writ Petition); B. Issue a writ of certiorari/or any other appropriate writ quashing the Approval bearing no. ITBA/AST/S/118/2023-24/1060002922(1) dated January 23, 2024 granted under Section 151 r.w. s. 148 of the IT Act, by the Third Respondent to the Proposal forwarded by the First Respondent for initiating reassessment proceedings for AY 2022-23 (Annexure - B to the Writ Petition); C. Hold that Explanation 2 to section 148 and the Proviso to section 148A of the IT Act as ultra vires as they are in violation of Article 14 of the Constitution of India; D. Pass any other order(s) and grant any other suitable relief as this Hon'ble Court may deem fit in the interests of justice and equity.” - 4 - HC-KAR NC: 2025:KHC:39716 WP No. 14069 of 2024 2. Heard Smt.Prerna Ponappa, learned counsel for the petitioner, Sri.Y.V.Raviraj, learned counsel for the respondents. 3. The grounds projected in the subject petition in support of the prayers quoted supra are identical to the ones considered by this Court in W.P.No.28182/2024 and connected matters, disposed on 28.08.2025. 4. In the light of the issue being similar and the reasons rendered therein becomes applicable to the case at hand, the petition deserves to be disposed on the same lines. Therefore, I pass the following: ORDER (i) The impugned show cause notice issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in this petition would stand quashed. (ii) Liberty is reserved to the respondents - revenue to revive the petition in the event, the Apex Court - 5 - HC-KAR NC: 2025:KHC:39716 WP No. 14069 of 2024 would hold in favour of the Revenue in the matter pending before it. (iii) With the aforesaid liberty and to the aforesaid extent, the petition is allowed. (iv) Contentions of both the parties except the one noted hereinabove, shall remain open to be considered in the event revival of this petition would become necessary. Sd/- (M.NAGAPRASANNA) JUDGE CBC List No.: 2 Sl No.: 31 CT:SS