- 1 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 33047 OF 2025 (T-IT) BETWEEN: BANGALORE METRO RAIL CORPORATION LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, REPRESENTED BY ITS DIRECTOR (FINANCE) SRI.S.SIVAMATHAN, S/O SRI.H.SIDDAN, AGED ABOUT 59 YEARS, 3RD FLOOR, BMTC COMPLEX, K H ROAD, SHANTHI NAGAR, BENGALURU - 560027, PAN AAACB4881D. …PETITIONER (BY SRI A SHANKAR, SR. COUNSEL APPEARING FOR SRI. ANNAMALAI S.,ADVOCATE) AND: 1. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, REP. 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, DELHI-110 003. 2. THE DEPUTY/ASSISTANT COMMISIONER, OF INCOME TAX, CIRCLE-2(1)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE-560095. …RESPONDENTS (BY SRI M DILIP, ADVOCATE FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 ASSESSMENT ORDER PASSED BY THE RESPONDENT NO.1 UNDER SECTION 143(3) RWS 144B OF THE ACT DATED 27.03.2025 BEARING DIN NO. ITBA/AST/S/143(3)/2024-25/1075097557 (1) FOR THE A.Y.2023-24 ENCLOSED AND REFERRED AS ANNEXURE-A1 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, the petitioner seeks the following reliefs: " i. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 15.01.2025 issued by the Respondent No.1 for the assessment year 2023-24 DIN bearing ITBA/AST/F/144(SCN)/2024-25/1072178455(1) herein marked as Annexure 'A'. ii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 06.03.2025 passed by the Respondent No. 1 under Section 144 read with Section 144B of Act for the assessment year 2023-24 bearing DIN No. ITBA/AST/S/144/2024-25/1074120505(1) herein marked as Annexure 'A1'. iii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 06.03.2025 issued by the Respondent No. 1 - 3 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 bearing DIN No. ITBA/AST/S/723/2024- 25/1074120542(1) herein marked as Annexure 'A2'. iv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice issued under Section 156 of the Act dated 06.03.2025 issued by Respondent No. 1 bearing DIN No. ITBA/AST/S/156/2024-25/10741206.30(1) herein marked as Annexure 'A3'. v. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice issued under Section 274 read with 271AAC(1) dated 06.03.2025 issued by Respondent No. 1 bearing DIN ITBA/PNL/S/271AAC(1)/2024-25/1074120779(1) herein marked as Annexure 'A4'. vi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice issued under Section 274 read with 272A(1)(d) dated 06.03.2025 issued by Respondent No. 1 bearing DIN ITBA/PNL/S/272A(1)(d)_FL/2024-25/1074117084(1) 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.” - 4 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 2. Heard learned counsel for the petitioner and learned counsel for respondents and perused the materials on record. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned show cause notice dated 27.01.2025 in order to point out that the said notice stipulate the period of less than 07 days since the petitioner has been called upon to submit his reply on 31.01.2025 at 11.15 am, which is less than stipulated period of 07 days as contained in the Standard Operating Procedure applicable to the impugned show cause notice. It is submitted that in the light of the Order of the Co- ordinate Bench of this Court in the case of Shri. Chowdapally Dattaprakash Ajay vs. Central Board of Direct Taxes and others - W.P.No.12923/2023 dated 06.07.2023, the impugned Assessment order at Annexure - A1 deserves to be set aside and the matter be remitted back to the concerned respondents from the stage of petitioner submitting its reply to the show cause notice dated 27.01.2025 and to proceed further in accordance with law. - 5 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 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. In Chowdappally’s case supra, the co-ordinate Bench of this Court held as under: "The petitioner has sought for setting aside of the assessment order dated 19.05.2023 passed by respondent No.2 under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short, 1961 Act') at Annexure-A1, setting aside of the computation sheet at Annexure-A2, setting aside of the notice of demand at Annexure-A3 and has also sought for setting aside of the penalty notice at Annexure-A4. The petitioner has also sought for setting aside of the notice under Section 148 of 1961 Act at Annexure-B1, setting aside of notice under Section 148A(b) of 1961 Act at Annexure-B2, setting aside of notice under Section 148A(d) of 1961 Act at Annexure-B3 and the notice under Section 148 of 1961 Act at Annexure-B4. The petitioner has also sought for setting aside the Instruction bearing No.1/2022 dated 11.05.2022 at Annexure-C. 2. Learned counsel for the petitioner submits that the assessment order is liable to be set aside on the sole ground of violation of principles of natural justice as the show cause notice at Annexure-J was issued on 10.05.2023 seeking for reply before 15.05.2023, which time for response is contrary to the SOP applicable for faceless assessment, copy of which is produced at Annexure-T. - 6 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 3. Attention is drawn to Clause N.1.3 which observes that the time for response to a show cause notice ought to be 7 days from the issue of show cause notice. He submitted that in the assessment order it was observed that there was no reply to the show cause notice and the Assessing Officer has proceed without any reply from the petitioner. It is submitted that in the light of the inadequate time that is available to make out a response which time limit is contrary to the SOP relating to time to be given for response to the show cause notice, it is submitted that the assessment order may be set aside and fresh opportunity may be accorded to the petitioner to make out reply to the show cause notice. 4. Perused the show cause notice at Annexure-J. 5. It is clear that the notice has been issued on 10.05.2023 by 18.14 hours. The response was directed to be made by 15.05.2023. The time that is stipulated for response is in clear violation of the applicable SOP at Clause N.1.3 which requires that at least 7 days time to be given for the purpose of making out a response. 6. It is clear that the plea of prejudice caused to the petitioner and violation of principles of natural justice is a contention that requires acceptance. Accordingly, on the sole ground, the matter is remanded to the stage post show cause notice at Annexure-J dated 10.05.2023. The petitioner is at liberty to make out his reply to the show cause notice at Annexure-J and the Authority to afford all opportunities as is permissible under the law to complete the proceedings. All contention of the petitioner are kept open. - 7 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 8. Learned counsel for the petitioner submits that the aspect of limitation is also to be kept open. Said submission of the petitioner is taken note of. Accordingly, Annexures-A1 to A4 are set aside. The matter is disposed off subject to the above observations." 6. In the instant case, a perusal of the show cause notice would indicate that the same was issued on 27.01.2025 calling upon the petitioner to submit its reply on or before 11.15 am on 31.01.2025, which is less than 07 days from the date of issuance of a show cause notice and the same being violative of standard operative procedure as held by the Co-ordinate Bench of this Court in the aforesaid case, I am of the considered opinion that the impugned assessment order and further notices deserve to be set aside and the matter be remitted back to the concerned respondent for reconsideration afresh from the stage of issuing show cause notice in accordance with law. 7. In the result, pass the following: ORDER (i) Petition is allowed. - 8 - HC-KAR NC: 2025:KHC:44040 WP No. 33047 of 2025 (ii) The impugned orders / Notices at Annexures – A1, A2, A3, A4, B2, B2, B3 and B4 passed / issued by the respondents are hereby set aside. (iii) Matter remitted back to the stage of petitioner submitting reply/additional reply to the notice dated 27.01.2025 issued by respondents with liberty to file additional pleadings, documents etc., which shall be considered by the concerned respondents after providing sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE CM List No.: 2 Sl No.: 16