- 1 - HC-KAR NC: 2026:KHC:34240 WP No. 20593 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 20593 OF 2026 (T-IT) BETWEEN: SHRI. CHIKKA BYRAPPA PROPRIETOR OF SHRI KALABHAIRAVESHWARA STEELS AND CO, S/O SHRI HANUMAIAH, AGED ABOUT 66 YEARS, RESIDING AT SURVEY NO.10/1, KADABAGERE DASANPURA, BENGALURU 562130 …PETITIONER (BY SRI. APRAMEYA N KATTI, ADVOCATE) AND: 1. ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI 110003 2. INCOME TAX OFFICER, WARD 2(1)(3), RANGE 128, BMTC BUILDING, 80 FEE ROAD, KORMANGALA, BEENGALURU 560095 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE ALONG WITH SRI. VINAYAK S PANDIT, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (A) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:34240 WP No. 20593 of 2026 ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION OR ORDER TO QUASH IMPUGNED ASSESSMENT ORDER DATED 01.01.2024 BEARING DIGITAL IDENTIFICATION NO. (DIN) ITBA/AST/S/147/2023-24/1059258822(1), PASSED BY THE 1ST RESPONDENT, ENCLOSED AS ANNEXURE-A, FOR THE REASONS STATED IN THE GROUNDS. (B) ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION OR ORDER TO QUASH IMPUGNED PENALTY NOTICE DATED 02.05.2024 BEARING DIN ITBA/PNL/F/271AAC(1)/2024-25/1064600555(1), ISSUED BY 1ST RESPONDENT, ENCLOSED AS ANNEXURE-B, AND ALL PROCEEDINGS / ORDERS PASSED CONSEQUENT THERETO, FOR THE REASONS STATED IN THE GROUNDS. (C) ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OR DIRECTION OR ORDER TO QUASH IMPUGNED NOTICE DATED 12.03.2026 BEARING DIN ITBA / RCV/S/226(3)-1 /2025-26/1087274264(1), AND ITBA/RCV/S/226(3)- 1/2025-26/1087273937(1), ITBA/RCV/S/226(3)-1/2025- 26/1087273793(1) ISSUED BY THE 2ND RESPONDENT, ENCLOSED AS ANNEXURE-C (COLLY) FOR THE REASONS STATED IN THE GROUNDS. (D) CONSEQUENTLY, ISSUE A WRIT OF MANDAMUS OR ANY OTHER WRIT OR DIRECTION OR ORDER DIRECTING THE 1ST RESPONDENT TO RE- ADJUDICATE THE MATTER IN ACCORDANCE WITH LAW AFTER AFFORDING THE PETITIONER AN OPPORTUNITY OF BEING HEARD AND ALLOWING HIM TO FILE HIS INCOME TAX RETURN FOR AY 2018-19. (E) ISSUE A WRIT OF MANDAMUS OR ANY OTHER WRIT OR DIRECTION OR ORDER DIRECTING THE 2ND RESPONDENT TO REFUND THE SUM OF RS. 19,67,245/- ILLEGALLY RECOVERED FROM THE ACCOUNT HELD BY THE PETITIONER IN KOTAK MAHINDRA BANK, KADABAGERE BRANCH (BEARING ACCOUNT NUMBER 0712125251). THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2026:KHC:34240 WP No. 20593 of 2026 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner is aggrieved by the Assessment Order dated 01.01.2024 [Annexure-A] which relates to the Assessment Year 2018-19. The Assessment Order is under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961. The Assessment Order reads that the petitioner is served on certain E-mail ID and the petitioner has not responded. The addition in the impugned Assessment Order is because the petitioner has failed to explain the cash deposits. 2. Mr. Aprameya N. Katti, the learned counsel for the petitioner, submits that the petitioner, not being familiar with the technology or the website that is hosted by the Income Tax department, has furnished his son’s Email-ID and as such the petitioner was unaware of the Show Cause Notices until the petitioner received communication of the - 4 - HC-KAR NC: 2026:KHC:34240 WP No. 20593 of 2026 debit in terms of the impugned Assessment Order. The learned counsel emphasizes that the petitioner, who is the proprietor of a registered Trader in steel, can demonstrate that the entire turnover from the business is treated as a taxable income without any deductions and that the petitioner must have an opportunity to show cause against the same. 3. Mr. M. Dilip, a learned Standing counsel who accepts notice for the respondents, is heard for disposal of the petition examining whether the petitioner must have another opportunity to respond to the Show Cause Notice dated 21.12.2023. This Court is of the view that it is obvious that the petitioner has relied upon his son’s E-mail ID and he was thus dependent on information being given to him and that the petitioner has not had an opportunity to show cause that the deposits are part of his business enterprise and therefore he is entitled to deductions before there is computation of tax or - 5 - HC-KAR NC: 2026:KHC:34240 WP No. 20593 of 2026 demand for interest or penalty on the ground that income has escaped tax. Therefore, the following. ORDER The petition is allowed-in-part quashing the impugned Assessment Order dated 01.01.2024 [Annexure - A], Penalty Notice dated 02.05.2024 [Annexure - B] and Notice dated 12.03.2026 [Annexure - C Series] observing that the question of refund is left open to be considered based on the outcome in the restored assessment proceedings reserving liberty to the petitioner to file response to the Show Cause Notice dated 21.12.2023 as enabled on the Portal by the Authorities consequent to this order. Sd/- (B M SHYAM PRASAD) JUDGE RB