- 1 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.33387 OF 2025 (T-IT) BETWEEN: RAMASWAMY ADIMOOLAM S/O SRI P RAMASWAMY, AGED ABOUT 54 YEARS, NO.C-81,PEENYA 3RD STAGE, BENGALURU – 560 058 PRESENTLY RESIDING AT #125A, 3RD CROSS, 3RD MAIN, NEAR AYYAPPA TEMPLE, PRAKASHNAGAR, SRIRAMPURAM, BENGALURU – 560 021. …PETITIONER (BY SRI. KIRAN NAIDU, FOR SRI. SHREEHARI KUTSA, ADVOCATES) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE (NFAC) A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. REP. BY PRL. CHIEF COMMISSIONER OF INCOME TAX (NFAC). 2. THE ASSESSMENT UNIT A UNIT CREATED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003 REP. BY PRL. CHIEF COMMISSIONER OF INCOME TAX (NEAC). Digitally signed by MADHURI S Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 3. JURISDICTIONAL ASSESSMENT OFFICER (JAO) DEPUTY COMMISSIONER OF INCOME TAX (DCIT) / ACIT CIRCLE 6(1)(1) BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. 4. PRINCIPAL COMMISSIONER OF INCOME TAX (PCIT) BANGALORE (1) BMTC BUILDING, 80FT ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU – 560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION QUASHING THE DIGITALLY SIGNED AND ELECTRONICALLY COMMUNICATED PENALTY ORDER UNDER SECTION 271B OF THE INCOME TAX ACT, 1961 DATED 19.09.2025 ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2017-18, BEARING DIN NO. ITBA/PNL/F/2718/2025-26/1080960996(1) ENCLOSED AS ANNEXURE – E1 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, petitioner seeks the following reliefs: “ i) Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the digitally signed and electronically communicated penalty order under Section 271B of the Income Tax Act, 1961 dated 19.09.2025 issued - 3 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 by the respondent No.1 for the Assessment Year 2017-18, bearing DIN No.ITBA/PNL/F/271B/2025-26/1080960996(1) enclosed as Annexure E1. ii) Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the digitally signed and electronically communicated Demand Notice dated 19.09.2025 issued by the Respondent No.1 for the Assessment Year 2017-18 bearing DIN No. ITBA/PNL/S/156/2025-26/1080957327(1) under section 156 in the Penalty order under 271B of the Act, enclosed as Annexure E2. iii) Issue a writ of certiorari or any other appropriate writ, order, or direction quashing the digitally signed and electronically communicated penalty order under Section 270A of the Income Tax Act, 1961 dated 25.09.2025 issued by the Respondent No.1 for the Assessment Year 2017-18, bearing DIN No.ITBA/PNL/F/270A/2025-26/1081183933(1) enclosed as Annexure F1. iv) Issue a writ of certiorari or any other appropriate writ, order or direction quashing the digitally signed and electronically communicated Demand Notice dated 25.09.2025 issued the Respondent No.1 for the Assessment Year 2017- 18 bearing DIN No. ITBA/PNL/S/156/2025-26/1081183859(1) under section 156 in the Penalty order under 270A of the Act, enclosed as Annexure-F2. v) Pass such other and further order(s) as this Hon’ble Court may deem fit in the facts and circumstances of the case, including the costs of this petition.” - 4 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 2. Heard the learned counsel for petitioner, learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that, the 1st respondent passed an assessment order dated 04.03.2025, raising total tax demand of Rs.4,79,20,006/-, pursuant to which, on 03.04.2025, pursuant to which, a notice under Section 274 read with Section 271 B of the Income Tax Act was issued by the 2nd respondent, calling upon the petitioner to show cause as to why penalty should not be imposed upon the petitioner. Subsequently, petitioner filed a statutory appeal before the competent authority, which is pending consideration even as on today. 4. Under these circumstances, the petitioner submitted repeated replies, representations, etc. calling upon the 2nd respondent to keep the penalty proceedings in abeyance on the ground that, the appeal was pending against the original assessment order. 5. It is the grievance of the petitioner that despite the petitioner filing an appeal against the assessment order coupled with repeatedly requesting the 2nd respondent to keep the penalty - 5 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 proceedings in abeyance on the ground that an appeal was pending consideration, the 2nd respondent has proceeded to pass the impugned orders dated 19.09.2025 and 25.09.2025 vide Annexures – E1 and F1, respectively, followed by subsequent notices at Annexures – E2 and F2, which are assailed in the present petition. 6. In support of the submission, he places reliance upon the order passed by this Court in the case of ANJANADRI FUEL STATION Vs. INCOME TAX OFFICER AND ANOTHER passed in WRIT PETITION No.6164/2024 (T-IT), wherein it is held as under: "In this petition, the petitioner seeks the following reliefs: “i) Writ of Certiorari or writ in the nature of certiorari or any other appropriate writ order or direction under Article 226 of the Constitution of India; calling for the records of the Petitioners case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order under Section 270A of Act dated 18.09.2023 in DIN:ITBA/PNL/F/270A/2023-24/ 1056251767(1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN ITBA/PLN/S/156/2023-24/1056249880(1) (Annexure- G1) for the AY 2018-19 and impugned order under Section 272A(1)(d) of Act dated 13.10.2023 in DIN and Order No. ITBA/ PNL/ F/ 272A (1) (D) /2023-24/ 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN:ITBA/PNL/S/156 /2023-24/1057041710 (1) (Annexure-H1) for the AY 2018-19. (ii) Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of Constitution of India - 6 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 ordering and directing the Respondents by themselves by their subordinates, servants or agents to withdraw and cancel the impugned order under Section 270a of Act dated 18.09.2023 in DIN: ITBA/PNL/F/270A/2023- 24/ 1056251767(1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN: ITBA/PNL/S/156/2023-24/1056249880(1) (Annexure-G1) for the AY 2018-19 and impugned order under Section 272A(1)(D) of Act dated 13.10.2023 in DIN and Order No. ITBA/ PNL/ F/ 272A(1) (D) / 2023-24 / 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN: ITBA/ PNL/S/ 156/ 2023-24/ 1057041710 (1) (Annexure-H1) for the Ay 2018-19 (iii) A writ of Prohibition or a writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of Constitution of India prohibiting and restraining the Respondents by themselves their sub ordinates, servants and agents from taking any action in furtherance or consequent to impugned order under Section 270A of Act dated 18.09.2023 in DIN.ITBA/PNL/F/270A/2023-24/ 1056251767 (1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN: ITBA /PNL /S/ 156 /2023-24/ 1056249880 (1) (Annexure-G1) for the AY 2018-19 and impugned order under Section 272A(1)(D) of Act dated 13.10.2023 in DIN and Order No. ITBA/PNL/ F/ 272A(1) (D)/2023-24 / 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN: ITBA/PNL/S/156/2023-24/1057041710 (1) (Annexure- H1) for the AY 2018-19 of the Act for the Assessment Year 2015-16 passed by Respondents. (iv) Grant the interim relief in terms of prayer (iii) above, and (v) Issue such other order, writ or direction as this Hon’ble Court deems fit.” 2. Heard learned counsel for the petitioner, learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, - 7 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 learned counsel for the petitioner submits that aggrieved by the Assessment Order dated 30.03.2023 passed by the respondents for the Assessment Year 2018-19, the petitioner filed an appeal on 12.05.2023. It is the grievance of the petitioner that despite pendency of the appeal before the Appellate Authority, the respondents have proceeded to issue penalty notice and show-cause notice followed by the impugned penalty orders and demand notice, which are assailed in the present petition inter alia contending that since the appeals were pending, it would be necessary to keep the penalty orders and demand notices in abeyance till disposal of the appeals as held by this Court in the case of Mr. B.S. Uday Shetty Vs. The Assistant Commissioner of Income Tax - W.P.No.8585/2022 dated 21.04.2022. 4. Per contra, learned counsel for the respondents submits that even the impugned penalty orders are appealable orders and as such, keeping the penalty orders and demand notice in abeyance till disposal of the appeal would not arise in the facts and circumstances of the instant case and as such, there is no merit in the present petition and the same is liable to be dismissed. 5. A perusal of Section 275 of the I.T. Act will indicate that there is clear embargo/bar on proceeding to pass penalty order if an appeal is pending on the Assessment Order. As rightly contended by the learned counsel for the petitioner in B.S. Uday Shetty’s case (supra), under identical circumstances, where the petitioner-Assessee did not file an appeal against the Original Assessment Order, - 8 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 this Court came to the conclusion that till disposal of the appeals filed by the Assessee, it is necessary to keep the penalty orders and notices in abeyance. In view of the aforesaid facts and circumstances and the judgment of this Court in B.S. Uday Shetty’s case (supra), rendered under identical circumstances, the present petition also deserves to be disposed of keeping penalty orders and demand notices in abeyance till disposal of the appeals filed by the petitioner. 6. In the result, I pass the following: ORDER i. The Writ Petition is allowed. ii. The impugned orders at Annexures-G and H dated 18.09.2023 and 13.10.2023 respectively, and the demand notices at Annexure-G1 and H1 dated 18.09.2023 and 13.10.2023 are hereby kept in abeyance till disposal of the appeals filed by the petitioner. iii. Liberty is reserved in favour of the respondents to proceed further upon disposal of the appeals filed by the petitioner." 7. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. - 9 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 8. As rightly contended by learned counsel for the petitioner, in the light of the provisions contained in Section 275 of the Income Tax Act coupled with the order passed by this Court in ANJANADRI FUEL STATION'S CASE (SUPRA), having regard to the undisputed fact that the appeal filed by the petitioner was still pending adjudication, Section 275 of the Act would act as a complete bar / embargo to pass a penalty order as against the petitioner, which is impermissible in law, warranting interference by this Court in the present petition. 9. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned orders at Annexures – E1 and F1 dated 19.09.2025 and 25.09.2025, respectively and the notices of demand dated 19.09.2025 and 25.09.2025 at Annexures – E2 and F2, respectively, are hereby kept in abeyance till disposal of the appeal filed by the petitioner. - 10 - HC-KAR NC: 2025:KHC:46059 WP No. 33387 of 2025 (iii) Liberty is reserved in favour of the respondents to proceed further upon disposal of the appeal filed by the petitioner. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 10