- 1 - HC-KAR NC: 2025:KHC:42606 WP No. 19946 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 19946 OF 2021 (T-IT) BETWEEN: M/S KARNATAKA STATE BEVERAGES CORPORATION LIMITED REPRESENTED BY ITS EXECUTIVE DIRECTOR (FINANCE AND ADMIN) DR SUNITHA M., D/O SRI J. MUKUNDA, AGED ABOUT 49 YEARS, 4TH FLOOR, TTMC BUILDING, A BLOCK, BMTC BUILDING, K. H. ROAD, SHANTHINAAR, BENGALURU – 560 027 …PETITIONER (BY SRI. A. SHANKAR, SENIOR COUNSEL APPEARING FOR SRI. ANNAMALAI S. & SRI. M. LAVA, ADVOCATES) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE REP. ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX OFFICER INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E RAMP JAWARAHALAL NEHRU STADIUM DELHI – 110 003 2. THE DEPUTY/ASSISTANT 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. E.I. SANMATHI, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:42606 WP No. 19946 of 2021 THIS W.P. FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE RESPONDENT NO.1 UNDER SECTION 143(3) READ WITH SECTION 263 READ WITH SECTION 144B OF THE INCOME-TAX ACT 1961 DATED 29.09.2021 FOR THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS ANNEXURE-A1 AND ETC., 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 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 263 read with section 144B of the Income-tax Act, 1961 dated 29.09.2021 for the assessment year 2015-16 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 263 read with section 144B of the Income-tax Act, 1961 dated 29.09.2021 for the assessment year 2015- 16 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 - 3 - HC-KAR NC: 2025:KHC:42606 WP No. 19946 of 2021 dated 29.09.2021 for the assessment year 2015-16 for a sum of Rs.10,88,91,410/- herein marked as Annexure-A3. iv) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of penalty issued under section 274 read with section 271(1)(c) of the Income-tax Act, 1961 dated 29.09.2021 for the assessment year 2015-16 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, the learned counsel for the petitioner invited my attention to the impugned order in order to point out that pursuant to the order dated 19.03.2020, the petitioner preferred an appeal. Thereafter respondent No.1 issued a notice under Section 142(2), to which the petitioner filed reply dated 23.08.2021 and has also filed a reply dated 30.08.2021. Thereafter, petitioner was given show-cause notice dated 15.09.2021 was directed to file reply by 23:59 hours of 19.09.2021, - 4 - HC-KAR NC: 2025:KHC:42606 WP No. 19946 of 2021 to which the petitioner filed preliminary reply dated 18.09.2021 and also on 19.09.2021, the petitioner sought for personal hearing, but the same was not considered by respondent No.1 and proceeded to pass the impugned Assessment Order dated 29.09.2021, 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 has filed replies to all the notices issued by respondent No.1 and has also requested respondent No.1 for personal hearing, but respondent No.1, without hearing the request of the petitioner, proceeded to pass the impugned Assessment Order at Annexure-A. Under these circumstances, I am of the considered opinion that the impugned notices and proceedings culminating in the impugned order and penalty order are violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting justice oriented approach and by directing - 5 - HC-KAR NC: 2025:KHC:42606 WP No. 19946 of 2021 respondent No.1 to consider the additional documents / reply, filed / to be filed by the petitioner and thereafter proceed further in accordance with law. 6. In the result, I pass the following:- ORDER (i) The petition is hereby allowed. (ii) The impugned Assessment Order dated 29.09.2021 at Annexure-A1, computation sheet dated 29.09.021 at Annexure-A2, demand notice dated 29.09.2021 at Annexure-A3 and penalty notice dated 29.09.2021 at Annexure-A4 passed by respondent No.1 is hereby set aside. (iii) The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit his response/reply along with the documents to respondent No.1, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 25