- 1 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14661 OF 2026 (T-IT) BETWEEN: SRI SATISH BABU EPURU PROP PROGRESSIVE ENGINEERING ENTERPRISES, AGED 48 YEARS, S/O E VEDAGIRI REDDY, NO.204, 2ND FLOOR, GANESH RESIDENCY, CHAMRAJPURAM, MYSORE 570005 …PETITIONER (BY SRI. RAVI SHANKAR S V.,ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1) AND TPS, MYSORE 570008 2. NATIONAL FACELESS ASSESSMENT CENTRE, REPRESENTED BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110003 …RESPONDENTS (BY SRI. DILIP M, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TOQUASH THE ORDER PASSED U/S 143(3) R.W.S 144B DATED 27/03/2026 BEARING DIN ITBA/AST/S/143(3)/2025-26/1088022508(1) PASSED BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2024-25 HEREIN MARKED AS ANNEXURE A; QUASH THE PENALTY NOTICE DATED 27/03/2026 ISSUED U/S 274 R.W.S 270A OF THE ACT BEARING DIN BY THE ITBA/PNL/S/270A/2025-26/1088022675(1) RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2024-25 HEREIN MARKED AS ANNEXURE - A1; QUASH THE PENALTY NOTICE DATED 27/03/2026 ISSUED U/S 274 R.W.S 272A(1) (D) OF THE ACT BEARING DIN ITBA/PNL/S/272A(1)(D)/2025- 26/1088022401(1) BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2024-25 HEREIN MARKED AS ANNEXURE - A2. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 ORAL ORDER The petitioner is aggrieved by the Assessment Order dated 27.03.2026 and the subsequent proceedings to recover the amounts covered under such Order as also the Penalty Notice. The impugned Assessment Order under Section 143(3) read with Section 144B of the Income Tax Act, 1961 [for short, 'the IT Act'] [Annexure - A] and the Penalty Notices are dated 27.03.2026 [Annexures - A1 and A2]. The petitioner is issued with a notice under Section 142 of the IT Act because of the petitioner’s failure to make TDS deduction under Section 194Q of the IT Act. 2. The petitioner has responded to such notices furnishing Form No.26A issued by the vendors. The petitioner has furnished these Forms from most of the entities within the time allowed by the Authorities, but it has not furnished such Forms from two [2] entities which has resulted in the - 4 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 Assessment Order. Mr. Ravi Shankar S V, the learned counsel for the petitioner, submits that as in the case of other vendors, the petitioner can also furnish Form No.26A issued by these two vendors which can remedy any failure to deduct TDS but the petitioner could not furnish these Forms because he was not in receipt of these Forms within the time allowed. 3. Mr. Ravi Shankar S V, relying upon Annexures - E and E1, submits that these Forms have been received from the vendors a day after the impugned Assessment Order and that if the petition is restored interfering with the Assessment Order and the consequential penalty proceedings with liberty to the petitioner to produce the relevant Form No.26A, the petitioner's grievance would be addressed. Mr. Dilip M, a learned Standing Counsel for the respondents, is heard in the light of these circumstances. - 5 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 4. This Court must observe that though the proceedings initially related to multiple entities for the petitioner's failure to deduct TDS, those proceedings have ultimately culminated in the impugned Assessment Order only insofar as two entities [M/s. SPM Wires and Cables Pvt. Ltd. and M/s. SPM Power and Telecom Pvt. Ltd] from whom the petitioner could not produce the Forms in No.26A. The petitioner has produced these Forms asserting that they have been received a day after the Assessment Order and that there are no malafides in setting up its case. 5. This Court is persuaded to intervene with the Assessment Order because if it is ultimately verified that the relevant Forms have indeed been issued validly by the concerned vendors, there would be no occasion for further proceedings. At this stage, when queried, Mr. Dilip M submits that after this Court's Order in the present proceedings, the - 6 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 Authorities would enable the petitioner to file the Forms on the Portal, which will enable the Authorities to verify the Forms for just orders. Hence, the following: ORDER [A] The writ petition is allowed in-part and the Assessment Order dated 27.03.2026 [Annexure - A] and the penalty notices also dated 27.03.2026 [Annexures - A1 and A2] are quashed reserving liberty to the petitioner to file Form No.26A as provided by M/s. SPM Wires and Cables Pvt. Ltd. and M/s. SPM Power and Telecom Pvt. Ltd. [B] The Authorities are called upon to enable the petitioner to file these Forms on the Portal and to verify the same. [C] It is observed that the outcome in these proceedings shall not prejudice the - 7 - HC-KAR NC: 2026:KHC:25450 WP No. 14661 of 2026 Revenue's interest howsoever if in the event the Forms are found to be of no avail to the petitioner. Sd/- (B M SHYAM PRASAD) JUDGE RB