- 1 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 9831 OF 2022 (T-IT) BETWEEN: EMINENCE ENTERPRISES, NO.9, SRI SHESHASHEE MOOKAMBIKA LAYOUT, UTTARAHALLI, BANGALORE – 560 061 (PAN AAFFE 5766N) REPRESENTED BY ITS PARTNER MS AHSA MALATKAR (FIRM REGISTRED UNDER THE FIRMS IN INDIAN PARTNERSHIP ACT, 1932) …PETITIONER (BY SRI. SUDHEENDRA B. R., ADVOCATE) AND: 1. DEPUTY COMMISSIONER OF INCOME TAX OFFICER CIRCLE 3(1)(1), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE – 560 095 2. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE 3(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE – 560 095 3. PRINCIPAL COMMISSIONER OF INCOME TAX BANGALORE-3, BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA BANGALORE – 560 095 (REPRESENTING THE NATIONAL FACELESS ASSESSMENT CENTRE) …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE NOTICE UNDER SECTION 148 DATED 28.03.2022 FOR THE AY 2017-18 (ANNEXURE-B) AND ETC., THIS PETITION, COMING ON FOR ORDERS, 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:- “(A) Quashing the notice under section 148 dated 28.03.2021 bearing DIN ITBA/AST/S/148/2020- 21/1031851487(1) for the AY 2017-18 (Annexure B) (B) Quashing the assessment order passed by the NFAC under section 147 rws 144 FWS 144B dated 26.03.2022 bearing DIN ITBA/AST/S/147/2021- 22/1041687758(1) for the AY 2017-18 (Annexure J1) (C) Quashing the computation sheet sent by the NFAC along with the impugned assessment order dated 26.03.2022 bearing DIN ITBA/AST/S/215/2021- 22/1041687862(1) for the AY 2017-18 (Annexure J2) (D) Quashing the notice of demand under section 156 dated 26.03.2022 bearing DIN ITBA/AST/S/156/2021- 22/1041687856(1) for the AY 2017-18 (Annexure J3) (E) Quashing the notice for penalty under section 274 read with section 270A dated 26.03.2022 for the AY 2017-18 with DIN ITBA/PNL/S/270A/2021- 22/1041687964(1) (Annexure K1) - 3 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 (F) Quashing the notice for penalty under section 274 read with section 271AAC(1) dated 26.03.2022 for the AY 2017-18 with DIN ITBA/PNL/S/271AAC(1)/2021- 22/1041687966(1) (Annexure K2) (G) Quashing the notice for penalty under section 274 read with section 271F dated 26.03.2022 for the AY 2017-18 with DIN ITBA/PNL/S/271F/2021- 22/1041687968(1) (Annexure K3) (H) Quashing the notice for penalty under section 274 read with section 272A(2)(d) dated 26.3.2022 for the AY 2017-18 with DIN ITBA/PNL/S/272A(2)(d)/2021- 22/1041687967(1) (Annexure K4) And (I) Passing such other or further orders as this Honourable High Court may think fit in the facts and circumstances of the case, in the interests of justice and equity.” 2. Heard learned counsel for the parties and perused the material on record. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invited my attention to the Show Cause Notice dated 28.03.2021 under Section 148 of the Income Tax Act at Annexure-B issued by the 1st respondent at Annexure-B, to - 4 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 which the petitioner could not file its reply to the said show-cause notice since the petitioner did not receive it either by email or physically by post. Subsequently, notices under Section 142(1) dated 08.12.2021, 10.01.2022, 15.02.2022 and 23.02.2022 at Annexures-C, D1, E1 and F1 were issued by respondent No.1 and NFAC, to which petitioner replied vide letters dated 18.02.2022, 18.02.2022 and 01.03.2022 at Annexures -D2, E2 and F2 respectively. Further, NFAC proceeded to issue Show Cause Notice dated 24.03.2022 to the petitioner and requested to file its reply on or before 25.03.2022, to which petitioner filed its reply on 25.03.2022 along with all documentary evidences. Without considering the reply and documentary evidences, NFAC proceeded to pass the assessment order dated 26.03.2022 under Section 147 read with Section 144 and 144B and four notices dated 26.03.2022 under Section 274 thereby violating principles of natural justice and as such, the petitioner is before this Court by way of present petition. 4. Per contra, learned counsel for the respondents- revenue submits that there is no merit in the petition and that the same is liable to be dismissed. - 5 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 5. A perusal of the impugned order will indicate that the petitioner filed its reply dated 25.03.2022 to the notice issued by the respondent dated 24.03.2022. It is also borne out from the impugned order dated 26.03.2022 that the NFAC has not considered the reply dated 25.03.2022 filed by the petitioner and has proceeded to pass the impugned order. Under these circumstances, I am of the considered opinion that the impugned notices, proceedings culminating in the impugned penalty order is violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting justice oriented approach and remit the matter back to the respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148 notice 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 – J1, J2, J3, K1, K2, K3 and K4 are hereby set aside. - 6 - HC-KAR NC: 2025:KHC:45039 WP No. 9831 of 2022 (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section 148 of the IT Act at Annexure – B dated 28.03.2021. (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 MDS List No.: 2 Sl No.: 26