- 1 - HC-KAR NC: 2026:KHC:28125 WP No. 13220 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 13220 OF 2026 (T-IT) BETWEEN: GOWKHA DHARANENDRAIAH JWALAKUMAR, S/O. GV DHARANENDRAIAH, AGED ABOUT 78 YEARS RESIDING AT NO. 2880, 7TH CROSS, 6TH MAIN, V.V. MOHALLA, MYSORE 570012. …PETITIONER (BY SRI. ARAVINDA S N.,ADVOCATE) AND: 1. INCOME TAX OFFICER/ INCOME TAX ASSESSMENT UNIT INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT UNIT 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI 110003. 2. ASSISTANT COMMISSIONER OF INCOME TAX, OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1) AND TPS Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:28125 WP No. 13220 of 2026 MYSORE PIN-570010. …RESPONDENTS (BY SRI.M. THIRUMALESH.,ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO I) ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR ORDER, QUASHING AND SETTING ASIDE; (A) THE ASSESSMENT ORDER DATED 23.03.2026, PASSED BY THE RESPONDENT NO.1, UNDER SECTION 147 READ WITH SECTION 144B OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2020-21 (DIN ITBA/AST/S/147/2025-26/1087773717(1)) VIDE ANNEXURE-A; (B) THE DEMAND NOTICE DATED 23.03.2026 ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT, 1961, BY RESPONDENT NO.1, BEARING DIN AND NOTICE NO. ITBA/AST/S/156/2025- 26/1087773988(1) VIDE ANNEXURE-A1; (C) THE PENALTY NOTICE DATED 23.03.2026 ISSUED UNDER SECTION 274 READ WITH SECTION 271AAC (1) OF THE INCOME-TAX ACT, 1961 BY RESPONDENT NO. 1, BEARING DIN AND NOTICE NO. ITBA/PNL/S/271AAC(1)/2025-26/1087773917(1) VIDE ANNEXURE-A2. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:28125 WP No. 13220 of 2026 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The outcome in this writ petition must turn on a short question viz., whether the first respondent could have completed the assessment proceedings on the ground that the petitioner has not responded to the Show Cause Notice. Sri Aravinda S.N., the learned counsel for the petitioner, and Sri M.Thirumalesh, a learned standing counsel for the respondents, who is called upon to accept notice, are heard. When served with a Show Cause Notice dated 16.03.2026, the petitioner, as could be seen from Annexure-C, has filed response on 20.03.2026. The assessment is closed on 23.03.2026 observing thus: “However, on verification, it is noticed that the assessee has not furnished any corroborative evidences such as confirmations from borrowers, PAN details, loan agreements or independent verification to substantiate the identity and creditworthiness of the parties and genuineness of such cash transactions. The cash book produced is a self-serving document and remains - 4 - HC-KAR NC: 2026:KHC:28125 WP No. 13220 of 2026 unverifiable. Further, the magnitude of cash deposits disproportionately high and the explanation remains unsubstantiated. Accordingly, the source of cash deposits amounting to Rs.91,90,500/- remains unexplained and the same is treated as unexplained money under Section 69A of the Income – Tax Act, 1961 and added to the income of the assessee.” The Assessing Officer has closed the assessment proceedings without considering the response on 20.03.2026. This Court must opine that there is reason for interference on this ground. The first respondent should have considered the reply and the documents, uploaded on the portal and then concluded assessment. Hence, the following: ORDER The petition is allowed-in-part quashing the Assessment Order dated 23.03.2026 [Annexures-A] and the subsequent Notices dated 23.03.2026 [Annexures- A1 and A2] - 5 - HC-KAR NC: 2026:KHC:28125 WP No. 13220 of 2026 calling upon the first respondent to consider the response as uploaded on 20.03.2026 and pass necessary orders. Sd/- (B M SHYAM PRASAD) JUDGE SA List No.: 3 Sl No.: 9