- 1 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 37534 OF 2025 (T-IT) BETWEEN: PRASHANT PRABUDH S/O MAHENDRA PRASAD, AGED ABOUT 47 YEARS, RESIDING AT N29W30593 FOXWOOD DRIVE, PEWAUKEE 53072, UNITED STATES OF AMERICA. …PETITIONER (BY SRI. ADITYA BHAT, ADVOCATE) AND: 1. PRINCIPLE COMMISSIONER OF INCOME TAX-3 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU, KARNATAKA - 560 095. 2. ASSESMENT UNIT COMMISSIONER NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003 3. ADDITIONAL / JOINT / DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. …RESPONDENTS (BY SRI. M. TIRUMALESH, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ASSESSMENT ORDER BEARING DIN AND NOTICE NO. ITBA/AST/S/147/2021-22/1040052355(1) DATED 23.02.2022 ISSUED BY RESPONDENT NO.3 UNDER SECTION 147 READ WITH SECTIONS 144 AND 144B OF THE 1961 ACT WHEREBY THE PETITIONER HAS BEEN DIRECTED TO PAY A SUM OF RS. 1,97,70,290/- AS TAX LIABILITY FOR UNEXPLAINED EXPENDITURE UNDER SECTION 69 (C) FOR THE ASSESSMENT YEAR 2015-2016 AT ANNEXURE - A AND ETC., THIS PETITION, COMING ON FOR FINAL 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 direction in the nature of a writ of Certiorari quashing the assessment Order bearing DIN and Notice No. ITBA/AST/S/147/2021-22/1040052355(1) dated 23.02.2022 issued by Respondent No.3 under Section 147 read with Sections 144 and 144B of the 1961 Act whereby the Petitioner has been directed to pay a sum of Rs. 1,97,70,290/- as tax liability for unexplained expenditure under Section 69(C) for the assessment year 2015-2016 at ANNEXURE - A. ii. Issue a writ of Certiorari or direction in the nature of a writ of Certiorari quashing the corresponding computation sheet bearing DIN and Document No. ITBA/AST/S/114/2021- 22/1040052444(1) dated 23.02.2022 issued by Respondent No.3 under Section 147 read with Sections 144 of the 1961 Act at ANNEXURE-B. - 3 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 iii. Issue a writ of Certiorari or direction in the nature of a writ of Certiorari quashing the corresponding demand notice bearing DIN and Notice. No. ITBA/AST/S/156/2021- 22/1040052376(1) dated 23.02.2022 issued by Respondent No.3 under Section 156 of the 1961 Act at ANNEXURE-C. iv. Issue a writ of Certiorari or direction in the nature of a writ of Certiorari quashing the penalty order dated 24.08.2022 bearing DIN and Letter No. ITBA/ PNL/F/271(1)(6) 2022- 28/1044 issued u issued under Section 271(1)(c) of the 1961 Act, whereby an additional sum of Rs. 1,97,70,285/-has been levied as penalty at ANNEXURE - D. V. Pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity. 2. Sri Tirumalesh, learned counsel is directed to accept notice for the respondents. 3. Heard learned counsel for the parties and perused the material on record. 4. 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 notice issued by the respondents under Section 148 of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 26.03.2021 was received by petitioner and could not file reply/ documents to the same since the petitioner has lost his vision permanently and was not aware of the notice issued - 4 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 and therefore the said notice as well as all further notices went un- noticed by the petitioner and hence, he could not file reply/documents and contest the proceedings. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 148 notice was due to her permanent disability and also 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 respondents may be directed to proceed further in accordance with law. 5. 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. 6. A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 148 notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with - 5 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 documents to Section 148 notice was due to his permanent disability and also 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 order at Annexure – A dated 23.02.2022, passed under Section 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act and subsequent notices / orders, etc., and remit the matter back to respondent No.3 for reconsideration afresh from the stage of submitting of reply by the petitioner to 148 notice and to proceed further in accordance with law. 7. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices / orders at Annexures – A, B, C and D are hereby set aside. (iii) Matter is remitted back to respondent No.3 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Notice under Section 148 of the IT Act dated 23.02.2022. - 6 - HC-KAR NC: 2025:KHC:53007 WP No. 37534 of 2025 (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 YKL List No.: 2 Sl No.: 18