- 1 - HC-KAR NC: 2025:KHC:45471 WP No. 29095 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.29095 OF 2025 (T-IT) BETWEEN: M.T. KRISHNE GOWDA AGED ABOUT 61 YEARS S/O. MR. THIMME GOWDA, LAXMI STONE CRUSHING INDUSTRIES, MUDUGANUR, ARAKALGUD, HASSAN TALUK-573 102. …PETITIONER (BY SRI. MAHESH.R.UPPIN, ADVOCATE) AND: 1. INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI -110 002. 2. JOINT/ADDL. CIT, RANGE - 1, OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX. REAC, MYSURU – 570 008. 3. ASSESSING OFFICER, ASSESSMENT UNIT INCOME TAX DEPARTMENT, DELHI – 110 002. 4. INCOME TAX OFFICER, WARD-2, AAYAKAR BHAVAN, 2ND STAGE, BELUR ROAD, HASSAN -573 201. …RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE) THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO BY ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE PENALTY ORDER PASSED 3RD RESPONDENT DT- 29-07-2025 BEARING DIN NO. ITBA/PNL/F/271DA/2025- 26/1079048373(1) MARKED AS ANNEXURE -F AND THE DEMAND NOTICE Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:45471 WP No. 29095 of 2025 DT- 29-07-2015 VIDE ANNEXURE-G BEARING NO. DIN AND NOTICE NO. ITBA/PNL/S/156/2025-26/1079047324(1) 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, the petitioner seeks the following reliefs: “i) Issue a writ in the nature of certiorari quashing the penalty order passed by 3rd Respondent dt: 29.07.2025 bearing DIN No. ITBA/PNL/F/271DA/2025- 26/1079048373(1) marked as “ANNEXURE-“F” and the Demand Notice dt: 29.07.2015 marked as Annexure-G bearing No.DIN & NOTICE No.ITBA/PNL/S/156/2025- 26/1079047324(1) ; and ii) Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.” 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 impugned order in order to point out that pursuant to the order dated - 3 - HC-KAR NC: 2025:KHC:45471 WP No. 29095 of 2025 14.03.2021 passed by the 1st respondent under Section 143(3) of the Income Tax Act, 1961 (for short, ‘the I.T.Act’), the 3rd respondent issued a Show Cause Notice dated 04.04.2025 under Section 271DA of the I.T. Act. Subsequently, the petitioner filed its reply to the said notice on 16.04.2025. Further, the 3rd respondent passed a Penalty order dated 29.07.2025 under Section 271DA of the I.T. Act. The learned counsel for the petitioner pointed out to the impugned order dated 29.07.2025 in order to show that the 3rd respondent did not consider the reply dated 16.04.2025 filed by the petitioner and proceeded to pass the impugned order 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. A perusal of the impugned order will indicate that the petitioner filed its reply dated 16.04.2025 to the notice issued by the petitioner dated 04.04.2025. It is also borne out from the impugned order dated 29.07.2025 that the 3rd respondent has not - 4 - HC-KAR NC: 2025:KHC:45471 WP No. 29095 of 2025 considered the reply dated 16.04.2025 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 by directing the 3rd respondent to consider the reply dated 16.04.2025 filed by the petitioner and thereafter proceed further in accordance with law. 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned penalty order at Annexure- F dated 29.07.2025 passed by the 3rd respondent is hereby set aside. (iii) The matter is remitted back to the 3rd respondent for reconsideration afresh in accordance with law from the stage of considering the reply dated 16.04.2025 filed by the petitioner to the Show Cause Notice at Annexure – D dated 04.04.2025. - 5 - HC-KAR NC: 2025:KHC:45471 WP No. 29095 of 2025 (iv) Liberty is reserved in favour of the petitioner to submit its response / reply along with the documents to the 3rd respondent, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 2 Sl No.: 39