- 1 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 32708 OF 2025 (T-IT) BETWEEN: SMT. KARUNA W/O LATE SRI S. R. MANJUNATH AGED ABOUT 48 YEARS, PARTNER OF M/S NANJUNDESWARA AGENCIES ENGAGED IN THE BUSINESS OF PHARMACEUTICALS HAVING ITS PRINCIPAL PLACE OF BUSINESS AT NO.954/955, GROUND, FIRST A+ND SECOND FLOORS 5TH CROSS, KUVEMPU NAGAR, KOLAR – 563 101 …PETITIONER (BY SRI. MANOJ S. N., ADVOCATE) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED 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 NEW DELHI – 110 003 2. THE INCOME TAX OFFICER ASSESSMENT UNIT, WARD-1, KOLAR, IT OFFICE,, NEW EXTENSION, KOLAR KARNATAKA – 563 101 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI AND QUASH THE ASSESSMENT ORDER NO. ITBA/AST/S/147/2023-24/1057619581(1) DATED 02.11.2023, PASSED UNDER SECTION 147 READ WITH SECTIONS 144 AND 144B OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2018- 19 BY THE RESPONDENT NO.1, AS PER ANNEXURE-K, TOGETHER WITH ALL CONSEQUENTIAL PROCEEDINGS 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:- a. Issue a Writ of Certiorari and quash the Assessment Order No. ITBA/AST/S/147/2023-24/1057619581(1) dated 02.11.2023, passed under Section 147 read with Sections 144 and 144B of the Income-tax Act, 1961, for the Assessment Year 2018-19 by the Respondent No.1, as per Annexure-K, together with all consequential proceedings. b. Issue a Writ of Certiorari and quash the Assessment Order No. ITBA/AST/S/147/2023-24/1058055598(1) dated 20.11.2023, passed under Section 147 read with Sections 144 and 144B of the Income-tax Act, 1961, for the Assessment Year 2019-20 by the Respondent No.1, as per Annexure-P, and all consequential proceedings. c. Issue a Writ of Certiorari and quash the corresponding Computation Sheets dated 02.11.2023 and - 3 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 20.11.2023, as per Annexures-L and Q, and all consequential proceedings. d. Issue a Writ of Certiorari and quash the Demand Notices dated 02.11.2023 and 20.11.2023, issued under Section 156 of the Income-tax Act, 1961, for the Assessment Years 2018-19 and 2019-20, as per Annexures-M and R, and all consequential proceedings. e. Issue a Writ of Certiorari and quash the Penalty Orders dated 30.11.2023 and 05.01.2024, passed under Section 272A(I)(d) of the Income-tax Act, 1961, for the Assessment Years 2018-19 and 2019-20, as per Annexures-N and S, and all consequential proceedings. f. Issue a Writ of Certiorari and quash the Penalty Orders dated 26.04.2024, passed under Sections 271AAC(1) and 271AAC of the Income-tax Act, 1961, for the Assessment Years 2018-19 and 2019-20, as per Annexures-T and V, and all consequential proceedings. g. Issue a Writ of Certiorari and quash the Recovery Letter dated 10.01.2025, bearing DIN ITBA/RCV/F/17/2024-25/1072076047 (1), issued by the Income-tax Officer, Ward-1, Kolar, as per Annexure-W together with all coercive recovery actions and consequential proceedings. - 4 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 h. Issue a Writ of Mandamus directing the Respondent authorities to consider and dispose of the Representation date 03.01.2025, submitted by the Petitioner seeking reopening and reconsideration of the impugned assessment and penalty orders, as per Annexure-X And i. Pass such other or further orders or directions as this Hon'ble Court may deem fit, just, and proper in the facts and circumstances of the case, in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents 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 notices issued by the respondents under Section 142(1) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 16.01.2023 and 11.07.2023, for the assessment years 2018-19 and 2019-20 respectively were not received by petitioner and he was not aware of the notices and consequently, petitioner could not submit its reply / response along with documents to the said notices. It is submitted that the inability and omission on the part of the petitioner to submit reply / response - 5 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 along with documents to the Section 142(1) notices was due to bona fide 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. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 142(1) notices. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section 142(1) notices were due to bona fide 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 orders at Annexure – K dated 02.11.2023, passed under Section 147 r.w.s. 144 r.w.s 144B of the Income Tax Act for - 6 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 the AY 2018-19, the order at Annexure - P dated 20.11.2023 passed under Section 147 r.w.s. 144 r.w.s 144B of the Income Tax Act for the AY 2019-20 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 dated 16.01.2023 and 11.07.2023 for the assessment years 2018-19 and 2019-20 respectively and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned notices / orders at Annexures K, P, L, Q, M, R, N, S, T, V and W 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 Notices under Section 142(1) of the IT Act dated 16.01.2023 and 11.07.2023 for the assessment years 2018-19 and 2019-20 respectively. - 7 - HC-KAR NC: 2025:KHC:44508 WP No. 32708 of 2025 (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 MDS List No.: 2 Sl No.: 43