- 1 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 26763 OF 2024 (T-IT) BETWEEN: UDUPI TALUK INDUSTRIAL CO OPERATIVE SOCIETY LTD., (A SOCIETY REGISTERED UNDER KCS ACT, 1959) PLANET PLAZA, MAIN ROAD, KINNIMULKY, UDUPI, UDUPI DISTRICT – 576 101. BY ITS GENERAL MANAGER SRI RAJESH HEGDE. …PETITIONER (BY SRI. MAHESH R. UPPIN, ADVOCATE) AND: 1. COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C. R. BUILDING, I. P. ESTATE, NEW DELHI – 110 002. 2. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-1, MANGALORE – 575 001 3. ASSESSING OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI – 110 002. 4. INCOME TAX OFFICER, WARD-1 AND TPS. ADI-UDUPI MALPE ROAD, POST AMBALPADY, UDUPI – 576 103. …RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 31-03-2021 BEARING DIN AND DOCUMENT NO. ITBA/AST/S118/2020-21/1032099594(1) PASSED BY THE 2ND RESPONDENT GRANTING APPROVAL FOR REASSESSMENT FOR THE ASSESSMENT YEAR 2016-17 MARKED AS ANNEXURE-C BY ISSUING A WRIT IN THE NATURE OF CERTIORARI AND ETC., 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 for the following reliefs: “i) Quash the order dated 31.03.2021 bearing DIN & Document No.ITBA/AST/S/118/2020- 21/1032099594(1) passed by the 2nd Respondent granting approval for reassessment for the Assessment Year 2016-17 marked as ANNEXURE "C" by issuing a writ in the nature of Certiorari: ii). Quash the notice of re-opening dt: 31-03-2021 bearing DIN & Notice No. ITBA/AST/S/148/2020- 21/1032101371(1) issued by 4th Respondent marked as ANNEXURE 'B' by issuing a writ in the nature of Certiorari; ii). Quash the Re-assessment Order dt: 30-03-2022 passed in Order No. ITBA/AST/S/147/2021- 22/1042068754(1) passed by the 3rd Respondent under PAN: AAAAU0686M marked as ANNEXURE "J" by issuing a writ in the nature of Certiorari: - 3 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 OR IN THE ALTERNATIVE ii) Issue a writ in the nature of mandamus by directing the 1st Respondent to dispose off the appeal ANNEXURE “L” filed by the petitioner in the e-portal dt: 20-05-2022 within a period of three months and till the disposal of the said dispose of the appeal, not to make any demand of Income Tax from the petitioner: and iii) Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.” 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 dated 31.03.2021 issued by the respondent No.4 under Section 148 of the Income Tax Act, which was issued on the alleged approval of the Additional Commissioner which bears no signature. The petitioner filed his Income Tax Return along with computation of income on 19.11.2021. Further, respondent No.3 issued notice - 4 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 under Section 142(1) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 15.02.2022 was received by petitioner and could not file reply/ documents to the same since the ‘Submit Response’ tab was found disabled in the portal by the time it was noticed by the petitioner on 19.02.2022. Pursuant thereto, respondent No.2 issued Show Cause Notice dated 28.03.2022 calling upon the petitioner to submit its reply on the same day before 23:59 hours. The petitioner submitted its response to Show Cause Notice on 29.03.2022 in the portal requesting at least two days time upto 31.03.2022 to file its objections to the Show Cause Notice/Draft Assessment order. Respondent No.3 without considering the same, has proceeded to pass the Re-assessment order dated 30.03.2022. Aggrieved by the re-assessment order, the petitioner submitted an application/representation to respondent No.4 requesting to hold the tax demand in abeyance till the disposal of its appeal by the Appellate Authority. 4. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the notice under Section 142(1) of the Income Tax Act was due to bonafide reasons, unavoidable circumstances and - 5 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 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. 5. 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. 6. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner requested for time to file its objections to Show Cause Notice/Draft assessment order. The respondent No.3 without considering the same has proceeded to pass the impugned assessment order without providing sufficient opportunity to the petitioner and granting personal hearing, which is arbitrary and in violation of principles of natural justice. 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 notice under Section 142(1) of the Income Tax Act 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 - 6 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 appropriate to set aside the impugned orders at Annexure – C dated 31.03.2021 passed under Section 151 of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent No.4 for reconsideration afresh from the stage of submitting of reply by the petitioner to notice dated 31.03.2021 under Section 148 of the Income Tax Act at Annexure-B and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures –B, C and J are hereby set aside. (iii) Matter is remitted back to respondent No.4 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Notice under Section 148 of the IT Act dated 31.03.2021. (iv) Petitioner is directed to withdraw the appeal to file before the appellate authority. - 7 - HC-KAR NC: 2025:KHC:42180 WP No. 26763 of 2024 (v) 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.: 3 Sl No.: 4