- 1 - HC-KAR NC: 2025:KHC:45478 WP No. 8648 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 8648 OF 2024 (T-IT) BETWEEN: FOURTH QUADRANT LABS PRIVATE LIMITED (PRIVATE LIMITED COMPANY INCORPORATED UNDER COMPANIES ACT 1956 REPRESENTED BY ITS DIRECTOR SMT PREETI NICHANI) 59, 35TH CROSS, BANAGIRI NAGAR, BSK III STAGE BANGALORE 560 085. …PETITIONER (BY SRI. JEEVAN.J.NEERALGI, ADVOCATE) AND: ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX COMMISSIONER OF INCOME TAX INCOME TAX OFFICER NATIONAL E ASSESSMENT CENTRE DELHI 110 001. …RESPONDENT (BY SRI. THIRUMALESH.M., ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER PASSED BY THE RESPONDENT U/S 143(3) R/W SECTIONS 143(3A) AND 143(3B) OF THE INCOME TAX ACT, 1961 DTD 04.03.2021 BEARING DIN ITBA/AST/S/143(3)/2020.21/1031219441(1) FOR THE AY 2018-19 AT ANNEXURE-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:45478 WP No. 8648 of 2024 CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: “ (i) Issue a writ of Certiorari or directions in the nature of Certiorari to quash the said impugned Order passed by the said impugned Order passed by the Respondent u/s 143(3) r/w sections 143(3A) & & 143 (3B) of the Income Tax Act, 1961 dated: 04.03.2021 bearing DIN ITBA/AST/S/143(3)/2020-21/1031219441(1) for the AY 2018-19 at (Annexure-A). (ii) To quash the impugned Demand Notice u/s 156 of the Income Tax Act, 1961, dated: 04.03.2021 bearing DIN & Notice No.ITBA/AST/S/156/2020-21/1031219521(1) arising out of impugned Order of Assessment detailed in 1st Prayer demanding the petitioner a sum of Rs.6,22,382,/- at (Annexure-B) (iii) Issue a Writ of Certiorari or directions in the nature of Certiorari to quash the said impugned Order passed by the Respondent u/s 270A of the Income Tax Act, 1961 bearing DIN ITBA/PNL/F/270(A)/2021- 22/1039047837(1) dated: 25.01.2022, imposing a penalty of Rs.2,74,766/- for the AY 2018-19.(AT ANNEXURE-C) (iv) Issue appropriate Writ, Order or direction directing the Respondents to refund the amount of Rs.9,94,415/-(Rupees Nine Lakhs Ninety Four Thousand Four Hundred and Fifteen Only) recovered towards - 3 - HC-KAR NC: 2025:KHC:45478 WP No. 8648 of 2024 impugned tax, interest and penalty 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 the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that Show-cause notice dated 26.02.2021 issued by the respondent was not received by petitioner and hence, could not file reply / documents to the same due to prevailing Covid-19 pandemic and bonafide 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 respondent may be directed to proceed further in accordance with law. 4. Per contra, learned counsel for the respondent 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 / - 4 - HC-KAR NC: 2025:KHC:45478 WP No. 8648 of 2024 response along with documents to Show-cause notice dated 26.02.2021. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to submit a reply along with documents to Show-cause notice dated 26.02.2021 was due to prevailing Covid-19 pandemic, and 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 appropriate to set aside the impugned orders at Annexure – A dated 04.03.2021 passed under Section 143(3) r.w.s. 143(3A) r.w.s 143(3B) of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to the respondent for reconsideration afresh from the stage of submitting of reply by the petitioner to the Show Cause Notice dated 26.02.2021 and to proceed further in accordance with law. 6. In the result, pass the following: ORDER (i) The petition is hereby allowed. - 5 - HC-KAR NC: 2025:KHC:45478 WP No. 8648 of 2024 (ii) The impugned notices / order at Annexures – A, B and C are hereby set aside. (iii) Matter is remitted back to the respondent for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice dated 26.02.2021. (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 SV List No.: 2 Sl No.: 61