- 1 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 4845 OF 2025 (T-IT) BETWEEN: PRATHAMIKA KRUSHI PATHINA SAHAKARA SANGHA NIYAMITHA YADAGANAHALLI PAN: AAEAP5273B PRESENTLY KNOWN AS VIVIDHODHESHA PRARTHAMIKA GRAMINA KRUSHI SAHAKARA SANGHA NIYAMITHA YADAGANAHALLI. CHIKKARASINAKERE HOBLI, MADDUR, MANDYA-571422 PREVIOUSLY KNOWN AS VYAVASAYA SEVA SHAHAKARI BANK NIYAMITHA PAN: AAAAV0708K. REPRESENTED BY, PRAVEEN KUMAR Y T, CEO OF THE PETITIONER, AGED 29 YEARS, S/O THIMEGOWDA YADAGANAHALLI THIMMEGOWDA, GOVERNMENT HOSPITAL ROAD, YADAGANAHALLY, CHIKKA ARASINAKERE HOBALI, MADDUR TALUK, MANDYA-571422. …PETITIONER (BY SRI. RAVI SHANKAR S. V., ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 1 AND TPS, Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 MANDYA-571401. 2. NATIONAL FACELESS ASSESSMENT CENTRE, 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, DELHI - 110003. 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX - 3, THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX - 3, BMTC BUILDING, KORAMANGALA, BANGALORE 560095 …RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE FOR R1 TO R3.) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) OF THE ACT DTD. 20.03.2022 DIGITALLY SIGNED ON 21.03.2022 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2021-22/1041109230(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNX-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court seeking the following prayers: “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under section 148A(b) of the Act, dated 20/03/2022, digitally signed on 21.03.2022 bearing DIN No. ITBA/AST/F/148A(SCN)/2021-22/1041109230(1), issued by Respondent No.1 for the Assessment year 2018-19 herein marked as Annexure - A. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act dated 25/04/2022 bearing DIN No. ITBA/AST/F/148A/2022- 23/1042844836(1) passed by Respondent No.1 for the Assessment year 2018-19 herein marked as Annexure - A1. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act, dated 26/04/2022, bearing DIN No. ITBA/AST/S/148_1/2022- 23/1042852756(1), issued by Respondent No.1 for the Assessment year 2018-19 herein marked as Annexure - A2. iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under Section 147 r.w.s. 144, 144B of the Act, dated 14/12/2023 bearing DIN No.ITBA/AST/S/147/2023-24/1058769711(1) issued by Respondent No.2 for the Assessment year 2018-19 herein marked as Annexure - A3. v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order - 4 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 under Section 272A(1)(d) of the Act, dated 25/06/2024 bearing DIN No. ITBA/PNL/F/272A(1)(D)/2024-25/1066042823(1) by Respondent No.2 for the Assessment year 2018- 19 herein marked as Annexure - A4. vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271AAC(1) of the Act, dated 26/06/2024, bearing DIN No. ITBA/PNL/F/271AAC(1)/2024-25/1066058929(1) by Respondent No.2 for the Assessment year 2018- 19 herein marked as Annexure - A5. vii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.” 2. Heard Sri Ravi Shankar S V, learned counsel appearing for petitioner and Sri M. Thirumalesh, learned counsel appearing for respondents 1 to 3. 3. The issue revolves around the minimum period to the assessee to respond to the notice issued by the Income Tax Authorities, which the statute mandates to be, not less than 7 days. The issue was before the Co-ordinate Bench of this Court in W.P.No.26893 of 2023. The Co-ordinate Bench, in terms of its order dated 08-01-2024 held as follows: “…. …. …. “Petitioner is impugning a notice dated 15th March 2023 issued under Section 148A(b) of the Income Tax - 5 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 Act, 1961 (the Act), the order dated 31st March 2023 passed under Section 148-A(d) of the Act and notice dated 31st March 2023 issued under Section 148 of the Act. 2. Petitioner is an individual who did not file return of income for Assessment Year 2016-17 because his income was less than taxable limit. 3. Petitioner received a notice dated 15th March 2023 under Clause 148A(b) of the Act from Respondent No.1, stating that Respondent No.1 has information which suggests that income chargeable to tax for Assessment Year 2016-17 has escaped assessment within the meaning of Section 147 of the Act. Petitioner was provided with information / enquiry on which reliance was placed in the form of annexure to the notice and Petitioner was called upon to show cause on or before 28th March 2023 as to why a notice under Section 148 of the Act should not be issued. The information which suggested that there has been an escapement of income from assessment provided details of a property that Petitioner had purchased. Petitioner was directed to provide head-wise computation of income, details of purchase of immovable property during Financial Year 2015-16 supported with copy of registered agreement with annexure II, details of payment made and source of acquisition of said immovable property. 4. Petitioner submitted an elaborate reply on 18th March 2023 and also raised certain objections. The main objection raised was that under the provision of Section 148A(b) of the Act, the assessee should be provided an opportunity of being heard by serving upon the assessee a notice to show cause within such time as may be specified in the notice being not less than seven days but not exceeding thirty days from the date on which said notice has been issued. Since the notice dated 15th March 2023 provides only for five days when the law requires minimum seven days to be given, the notice itself was bad-in-law. 5. Along with reply, Petitioner also provided a photo copy of the notarised affidavit of Petitioner's brother affirmed on 18th March 2023, in which the brother has confirmed of giving gift of Rs.75 lakhs to Petitioner on 26th - 6 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 March 2019, which is much beyond the relevant Assessment Year. 6. Respondent No.1 has passed the impugned order dated 31st March 2023 under Clause D of Section 148A of the Act. In the order, Respondent No.1 states that from the statement issued by HDFC Bank for the period 1st April 2018 to 31st March 2019 of the brother, it is seen that there is a credit entry of Rs.1 Crore on 19th March 2019, out of which Rs.75 lakhs has been paid to Petitioner on 26th March 2019. Respondent No.1 also states that the gift deed submitted by Petitioner from the brother has not been notarised. 7. Moreover, Respondent No.1 states that income chargeable to tax has escaped assessment without mentioning what is the amount of income that has escaped assessment. Further, the approval under Section 151 of the Act which is annexed to the impugned order is of one Poonam Vijay Chhabria whose PAN number is also entirely different from the PAN number of Petitioner. Respondent No.1 is totally silent about the objections raised by Petitioner of minimum seven days notice required. Mr. Gandhi states that on each of these grounds not only the impugned order dated 31st March 2023 but also the notice dated 31st March 2023 itself should be quashed and set aside. 8. No reply has been filed though Petition was served more than a month ago. We have, therefore, decided to go ahead and consider the matter and dispose it since we were, prima facie, satisfied that there was merit in Petitioner's submissions. Section 148-A(B) of the Act reads as under:- “provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case - 7 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 for the relevant assessment year and results of enquiry conducted, if any, as per clause (a)." 9. The notice dated 15th March 2023 gives time only up to 20th March 2023 to show cause. We have to note that even the guidelines dated 1st August 2022 for issuing of notice under Section 148 of the Act also provide that if the result of an enquiry / information available suggests that income chargeable to tax has escaped assessment, the Assessing Officer shall provide an opportunity of being heard by assessee by issuing the show cause notice under Section 148A(b) of the Act and the notice shall provide between seven to thirty days time for the assessee to submit their reply. A template of the show cause notice is also annexed to the guidelines. Therefore, in view of the guidelines, we would also read that the minimum seven days required to be made as a mandatory requirement and failure to comply with would render a notice itself invalid. Therefore, on this ground alone, the notice requires to be quashed and set aside. Perhaps, being aware of this position, Respondent No.1 has chosen not to deal with these objections raised by Petitioner in the reply to the show cause notice. 10. We also found in the said guidelines a provision that the order under Section 148A(d) of the Act shall be sent to assessee along with the approval of the specified authority for such order under Section 148A(d) of the Act. In the case at hand, the approval that has been sent is of some other assessee and not Petitioner. This also indicates non-application of mind by Respondent No.1. On this ground also, the order dated 31st March 2023 impugned in the Petition is required to be quashed and set aside. 11. Further, in the guidelines to which is annexed a template of the order to be passed under Section 148A(d) of the Act provides for mentioning of amount escaped based on the information and how this amount is represented in the form of assets. It also provides that the Assessing Officer will specify the quantum of income / assets / expenditure / entry which has escaped assessment. This not stated in the order under Clause D of Section 148 of the Act. On this ground also, the said order dated 31st March 2023 is required to be quashed and set aside. - 8 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 12. Further, there is a factually incorrect statement made in the order that the affidavit of Petitioner's brother that was submitted was not notarised when it was factually a notarised affidavit. 13. Further, in the impugned order, it is stated that the HDFC statement / document do not substantiate the credit worthiness and genuineness of the lender of the gift, i.e., brother of Petitioner. Mr. Gandhi states that if only Petitioner was called upon to submit, Petitioner would have submitted evidence towards credit worthiness of the brother because in the show cause notice issued, Petitioner was only directed to call upon to disclose the source from which he got money to pay for the flat. In over view, therefore,, on this ground also, the impugned order dated 31st March 2023 is required to be quashed and set aside. 14. Accordingly, we hereby quash and set aside the notice dated 15th March 2023 issued under clause (b) of Section 148-A of the Act, the impugned order dated 31st March 2023 issued under clause (d) of Section 148A of the Act and consequent notice dated 31st March 2023 issued under Section 148 of the Act. 15. Petition disposed. There shall be no order as to costs.” 4. Learned counsel Sri Thirumalesh M appearing for the respondents would not dispute the position of law being affirmed by the Co-ordinate Bench, as the notice was set aside by the learned single Judge. - 9 - HC-KAR NC: 2025:KHC:37568 WP No. 4845 of 2025 5. In the light of the issue being covered on all its fours to the order in the writ petition as afore-quoted, the petition deserves to succeed on the same lines. 6. For the aforesaid reasons, the following: ORDER (i) Writ petition is allowed. (ii) The impugned notice issued to the petitioner vide Annexure A dated 20-03-2022, Annexure A1 dated 25-04-2022, Annexure A2 dated 26.04.2022, Annexure-A3 dated 14-12-2023, Annexure 4 dated 25.06.2024 and Annexure A5 dated 26.06.2024, stand quashed. Sd/- (M.NAGAPRASANNA) JUDGE MKM List No.: 3 Sl No.: 9