- 1 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.14153 OF 2025 (T-IT) BETWEEN: SHRI J. SOMASHEKAR ALIAS SOMASHEKAR JAYARAJ S/O SHRI. C. JAYARAJ, AGED ABOUT 52 YEARS, RESIDING AT NO. 2223, 39TH 'F' CROSS, 4TH ‘T’ BLOCK, JAYANAGAR, BENGALURU – 560 041. EMAIL ID: somsrr1@gmail.com PHONE: 98800 10000 …PETITIONER (BY SRI. S. S. NAGANAND, SENIOR COUNSEL FOR SMT. SUMANA NAGANANDA, ADVOCATE) AND: 1. UNION OF INDIA REPRESENTED THROUGH, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE HAVING ITS OFFICE AT: NORTH BLOCK, NEW DELHI – 110 001. REPRESENTED BY ITS SECRETARY. 2. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 4(1), INCOME TAX DEPARTMENT, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU – 560 027. 3. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(1), INCOME TAX DEPARTMENT, UNITY BUILDING ANNEXE, MISSION ROAD, BENGALURU – 560 027. Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 4. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2), INCOME TAX DEPARTMENT, CENTRAL REVENUE BUILDING, QUEEN’S ROAD, BANGALORE – 560 001 5. COMMISSIONER OF INCOME TAX (TDS), NO. 59, HMT BHAVAN, 4TH FLOOR, BELLARY ROAD, BANGALORE – 560 032 …RESPONDENTS (BY SRI. NAGENDRA A., ADVOCATE FOR R1; SRI. Y.V. RAVIRAJ, ADVOCATE FOR R3 & R4 ) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT NO.2 TO 5 TO TAKE NECESSARY ACTION IN REGARD TO RECTIFICATION / DELETION OF THE RECORD OF DEMAND FOR THE A.Y. 2009-2010 STANDING IN THE NAME OF THE PETITIONER FROM THE WEB PORTAL OF THE INCOME TAX DEPARTMENT (ANNEXURE-E) AS EXPEDITIOUSLY AS POSSIBLE. 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 petitioner, petitioner seeks the following reliefs: “WHEREFORE, it is respectfully prayed that this Hon’ble Court may be pleased to issue an appropriate writ in the nature of mandamus, or any other writ, order or direction and, i) Direct the Respondent Nos.2 to 5 to take necessary action in regard to rectification / deletion of the record of demand for the A.Y. 2009-2010 standing in the name of the Petitioner from the web portal of the Income Tax Department (Annexure-E), as expeditiously as possible; - 3 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 (ii) Pass such other order/s and grant such relief/s as this Hon’ble Court deems fit in the interest of justice.” 2. Heard learned counsel for both parties and perused the material on record. 3. A perusal of the material on record will indicate that on 19.12.2011, an assessment order in relation to the income of the petitioner was passed for the assessment year 2009-10, which was challenged by the petitioner in W.P.Nos.16883/2012 and 17433/2012, which were disposed of reserving liberty to file rectification application, pursuant to which, the petitioner filed a rectification application on 08.08.2012 before the Assessing Officer. Thereafter, the respondents-Revenue issued a demand status to the petitioner on 12.12.2018, calling upon the petitioner for non-payment of income tax which was again assailed by the petitioner in W.P.No.6217/2019, which was disposed of by this Court vide final order dated 12.01.2022 as hereunder: “The petitioner is stated to be the owner of property that had been let out on rental to the 4th respondent company. It is submitted that the tenants while paying the rent had deducted TDS. It is further submitted that the petitioner had received Form 16A only for a sum of - 4 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 Rs.7,60,008/- with respect to the Financial Year 2008-09 (Assessment year 2009-10) from respondent no.3. 2. It is pointed out by the learned Senior Counsel appearing for the petitioner that the respondents have deducted TDS with respect to the period of April'2008 to July, 2009 and attention of the court is drawn to Annexure- 'C', which is the statement as regards deduction of TDS amount for the period August, 2008 to August, 2009 as regards premises measuring 76,740 Sq.Ft., and letters of various periods indicating payment of rent after deduction of TDS are enclosed as Annexure-'C1' to 'C13'. Similarly, statement at Annexure-'D' with respect to premises measuring 41407 Sq.Ft., for the period May,2008 to August, 2009 is enclosed at Annexure-'D' and individual letters of the tenants remitting rent after deducting TDS is enclosed at Annexure-'D1' to 'D16'. 3. It is pointed out by the learned Senior Counsel appearing on behalf of the petitioner that the Department however despite petitioner having pointed out deduction of TDS has passed the assessment orders without giving credit to the TDS deducted by the tenants. It is further submitted that demand notice for the assessment year 2009-10, 2010- 11 were also raised. 4. The petitioner submits that the earlier writ petition filed by them in W.P.No.16883 & 17433/2012 seeking to quash the notice of demand dated 19.12.2011 were disposed off with liberty to the petitioner to file rectification - 5 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 application under Section 154 of the Income Tax Act, 1961 ("the Act", for short). 5. It is submitted that the petitioner had filed an application for rectification of assessment year relating to the assessment year 2009-10 and 2010-11 on 08.08.2012 and the applications are not disposed off till this date. The petitioner in the present writ petition has sought for quashing of the demand notice dated 19.12.2011 for the assessment year 2009-10, 2010-11, sought for directions to respondent nos.2, 5, 7 to allow the rectification application dated 08.08.2012 at Annexure-'R' and 'R1' filed by the petitioner and to declare that respondent nos.1, 2, 5, 6 and 7 are not entitled to recover the amounts demanded as per Annexure- 'M','N' from the petitioner and further reliefs have been sought for. 6. It must be noted that the contention of the petitioner that under Section 205 of the Act, when the tax is deducted at source, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income is explicit and accordingly, demand as against the petitioner is impermissible in law, the said contention requires to be accepted. Insofar as the Department is concerned, right of the Department is to proceed against the Deductor and this is the position of law that also been laid down by this court in the case of Smt.Anusuya Alva v. Deputy Commissioner of Income- Tax and Others reported in 2005 SCC Online Kar 746, wherein this court has clarified that once deduction is made, - 6 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 revenue is expected to look to the person who had deducted the tax for realising the amount, if such person fails in remitting the amount to the Central Government. This position of law is not disputed by the learned counsel for the Department. In effect, the remedy available to the Department is to proceed against the Deductor in terms of Section 201 (1), 201 (1A) by treating the Deductor as Assessee in default. Further, the Department is also at liberty to levy interest and penalty as per law and would have liberty to take such other proceedings as are permissible as against the tenants who having deducted have failed to remit the tax to the Government. 7. In light of the settled position of law, Demand Notice as regards the petitioner at Annexure-'M' and 'N' are set aside. The respondent no.2 to decide the Rectification application at Annexure-'R' and 'R1' taking note of the discussion made above in light of settled position of law. Noticing that rectification applications are still pending before the respondent, this court relegates the matter to the respondent no.2 to dispose off the rectification application, taking note of the discussion as made above. The authority may take note of the material to be submitted by the petitioner to evidence deduction of tax at source by the respondent nos.3 and 4. 8. The learned Senior Counsel appearing for the petitioner has also produced along with the memo dated 11.01.2022, the letter dated 02.12.2009 whereby the tenant has acknowledged the remittance of TDS which the learned - 7 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 counsel for petitioner would indicate the factum of deduction of TDS by the tenants and if read along with Annexure-'C1' to 'C13' and 'D1' to 'D16' would indicate that tenants have in fact deducted the amount and failed to remit as remittance is not found in the records of the revenue. Insofar as prayer at (iii) is concerned, it is open to the Department to take appropriate action against respondent nos.3 and 4 as per law to recover sums deducted by the respondents and not remitted to the Department and other penal action. 9. The rectification application to be disposed off within a period of not later than eight weeks from the date of release of the order.” 4. Subsequently, on 19.12.2022, respondent No.4 issued communication stating that the outstanding demand in relation to the assessment year 2009-10, to the tune of Rs.1,54,41,970/- is not currently collectable from the petitioner in the light of the directions issued by this Court in W.P.No.6217/2019 referred to supra. So also, respondent No.4 issued one more communication dated 23.12.2022 referring to this Court’s judgments in W.P.No.6217/2019 stating that the demand outstanding is not enforceable at the hands of the assessee. In view of the aforesaid facts and circumstances, the petitioner submitted repeated representations including the representations dated 28.02.2023 - 8 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 and 27.06.2023 seeking deletion of the outstanding demand which had continued to remain in the web portal of the Income Tax Department. It is the grievance of the petitioner instead of taking steps to remove the demand, which continued to be in the income tax web portal, respondent No.5 issued a response dated 31.07.2023 vide Annexure-E and as such, the petitioner is before this Court by way of the present petition. 5. Per contra, learned counsel for the respondent- Department while admitting that this Court had disposed of W.P.No.6217/2019 in favour of the petitioner, submits that the said order had been challenged by the respondent department by way of review in R.P.No.247/2023, which is pending adjudication. It is submitted that as on today, there is no interim order passed in favour of the respondent – Department, which is pending adjudication as on today. 6. In view of the aforesaid facts and circumstances, which clearly indicate that in the light of the order passed in W.P.No.6217/2019, it is incumbent upon the respondents to take necessary steps to delete the record of outstanding demand for the assessment year 2009-10 standing in the name of the petitioner - 9 - HC-KAR NC: 2025:KHC:46498 WP No. 14153 of 2025 from the web portal of the Income Tax Department by issuing necessary directions in this regard and by directing that the said removal will be subject to the final outcome of R.P.No.247/2023 before this Court. 7. In the result, I pass the following: ORDER (i) The petition is allowed. (ii) Respondent Nos.2 to 5 are hereby directed to take necessary steps to delete the record of outstanding demand for the assessment year 2009-10 standing in the name of the petitioner from the web portal of the Income Tax Department, within a period of two weeks from the date of receipt of a copy of this order. (iii) It is however made clear that the present order and further actions to be taken by the respondents pursuant thereto would be subject to the final outcome of R.P.No.247/2023. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC; List No.: 2 Sl No.: 5