- 1 - HC-KAR NC: 2025:KHC:50565 WP No. 16675 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16675 OF 2022 (T-IT) BETWEEN: URBAN CO OPERATIVE CREDIT SOCIETY LTD NO.1 CHURCH STREET, RAMANAGARA DISTRICT, RAMANAGAR – 562 117 REP. BY ITS GENERAL MANAGER, SRI C. RAVINDRA, (SOCIETY REGISTERD UNDER KARNATAKA CO-OPERATIVE SOCIETY ACT, 1959) …PETITIONER (BY SRI. M. V. SESHACHALA, SENIOR COUNSEL FOR SRI. G.S. NAGHARISH, ADVOCATE) AND: 1. ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, NO.412-413, 1ST FLOOR, OPP. METRO PILLAR NO.793 DWARKA MOR, NEW DELHI – 110 059 2. INCOMET AX OFFICER WARD -2(2)(3) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK KORAMANGALA, BENGALURU – 560 095 3. PRINCIPAL COMMISSIONER OF INCOME TAX-2 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA BENGALURU – 560 095 …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:50565 WP No. 16675 of 2022 THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PENALTY ORDER U/S.270A OF THE IT ACT DATED 10.02.2022 BEARING NO.ITBA/PNL/F/270A/2021-22/1039591425(1) ANNEXURE-E1 AND DEMAND NOTICE U/S.156 OF THE IT ACT DTD 09.02.2022 BEARING NO.ITBA/PNL/S/156/2021-22/1039589917(1) ANNEXURE-E2 FOR THE ASSESSMENT YEAR 2018-19 PASSED BY THE 1ST RESPONDENT. 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. Issue a Writ of certiorari to quash the penalty order u/s 270A of the IT Act dated 10.02.2022 bearing No. ITBA/PNL/F/270A/2021-22/1039591425(1) Annexure- E1 & demand notice u/s 156 of the IT Act dated 09.02.2022 bearing No.ITBA/PNL/S/156/2021- 22/1039589917(1) Annexure-E2 for the Assessment year 2018-19 passed by the first respondent. b. Issue such other Writ or direction as this Hon’ble Court deems fit to grant in the facts and circumstances of the present case.” 2. Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 3 - HC-KAR NC: 2025:KHC:50565 WP No. 16675 of 2022 3. A perusal of the material on record will indicate that the Assessment Order, which preceded the impugned penalty order has been set aside by this Court in W.P.No.13407/2025 and the matter is remitted back to the concerned respondent for reconsideration afresh, as hereunder: “ORDER (i) The petition is allowed. (ii) The impugned Assessment Order dated 02.03.2021 at Annexure-G passed by respondent No.1 and the subsequent recovery notice dated 13.07.2021 at Annexure-L passed by respondent No.2 are hereby set aside. (iii) The matter is remitted back to respondent No.1 for reconsideration of the matter afresh, in accordance with law. (iv) Liberty is reserved in favour of the petitioner to submit reply/response, documents, etc., before respondent No.1, who shall consider the same, provide sufficient opportunity, hear the petitioner and proceed further, in accordance with law.” 4. Under these circumstances, the impugned penalty order also deserves to be quashed. 5. In the result, I pass the following: - 4 - HC-KAR NC: 2025:KHC:50565 WP No. 16675 of 2022 ORDER (i) The petition is allowed. (ii) The impugned penalty order dated 10.02.2022 at Annexure-E1 and demand notice dated 09.02.2022 at Annexure-E2, passed/issued by respondent No.1, are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 24