- 1 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 27TH DAY OF JANUARY 2026 BEFORE THE HON'BLE MRS JUSTICE K.S.HEMALEKHA WRIT PETITION NO.109407 OF 2025 (T-IT) BETWEEN: TANAJI APPASAHEB SURYAVANSHI S/O. LATE APPASAHEB, AGED ABOUT 65 YEARS, KHB COLONY, MANTOOR ROAD, MUDHOL, BAGALKOT-587313. …PETITIONER (BY SRI. S.V.RAVISHANKAR AND SRI. SHASHANK S.HEGDE, ADVOCATES) AND: 1. THE INCOME TAX OFFICER WARD 1 AND TPS, BAGALKOT-587102. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E - RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003. …RESPONDENTS (BY SRI. M.THIRUMALESH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER PASSED U/S 143(3) R.W.S 144B DATED 22/09/2022 BEARING DIN ITBA/AST/S/143(3)/2022-23/ 1045835891(1) ISSUED BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2020-21 HEREIN MARKED AS ANNEXURE – A AND ETC. MANJANNA E Digitally signed by MANJANNA E Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2026.02.07 10:07:55 +0530 - 2 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA ORAL ORDER The petitioner has called in question the assessment order dated 22.09.2022 passed by under Section 143 (3) read with Section 144B of the Income Tax Act, 1961 (for short ‘the Act’) for the assessment year 2020-2021 as also the penalty order dated 25.07.2022 passed under Section 272A (1) (d) of the Act. 2. Brief facts: The petitioner is an individual assessee who has filed his return of income for the assessment year 2020-2021. The said return was selected for scrutiny and notices under Section 143 (2) and 142 (1) of the Act, came to be issued during the course of assessment proceedings. During the pendency of the assessment proceedings, respondent No.1 initiated penalty proceedings alleging non-compliance with the notices issued under Section 142 (1) of the Act and - 3 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 passed a penalty under penalty order on 25.07.2022 under Section 272A (1)(d) of the Act. Thereafter, respondent No.2 proceeded to complete the assessment and pass the impugned assessment order dated 22.09.2022 under Section 143 (3) read with Section 144B of the Act. Aggrieved by both the assessment order and the penalty order, the petitioner has approached this Court. 3. The learned counsel for the petitioner contends that the assessment has been concluded without affording the petitioner sufficient and effective opportunity of hearing. It is submitted that the notices were not effectively served and the petitioner was deprived of a meaningful opportunity to place his explanation and material on record. It is further contended that the penalty order under Section 272A (1) (d) of the Act though passed during the pendency of the assessment proceedings, emanates from the same proceedings and is founded on the alleged non-compliance therein. It is therefore submitted that once the assessment - 4 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 is vitiated for violation of principles of natural justice, the penalty order cannot independently survive. 4. Learned counsel appearing for the Authority sought to justify the impugned orders, contending that notices were issued in accordance with law and that the petitioner failed to comply with the same, resulting in passing of the penalty order and the assessment order. 5. The point that arises for consideration is; “Whether the assessment order dated 22.09.2022 and the penalty order dated 25.07.2022 are unsustainable in law having regard to the allegation of violation of principles of natural justice ?” 6. On consideration of the pleadings and material on record, this Court finds that the assessment has been completed without affording the petitioner of sufficient and effective opportunity of hearing. The impugned assessment order does not reflect meaningful consideration of the petitioner's explanation or material on merits. An - 5 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 assessment order having serious civil consequences, is required to be preceded by adherence of the principles of natural justice. The denial of reasonable opportunity to participate in the proceeding, vitiates the decision making process itself. Though the penalty order under Section 272A (1) (d) of the Act is anterior in point of time to the assessment order, the same emanates from the very same assessment proceeding and is founded on an alleged non- compliance during such proceedings. Once the assessment order is founded to be vitiated on procedural grounds, the penalty order also cannot be sustained. 7. In the circumstances, this Court deems it appropriate to remit the matter to the Assessing Authority at the stage of notice under Section 143 (2) dated 29.10.2021, reserving the liberty to the petitioner to file additional reply, if any, and directing the Assessing Authority to pass a reasoned order after avoiding sufficient and reasonable opportunity in accordance with law. - 6 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 8. Accordingly, this Court pass the following; ORDER i. The writ petition is allowed. ii. The impugned assessment order dated 02.09.2022 passed under Section 143 (3) read with Section 144B of the Income Tax Act, 1961 for the assessment year 2020-2021, is hereby quashed. iii. The penalty order dated 25.07.2022 passed under Section 272A (1) (d) of the Income Tax Act, 1961 for the assessment year 2020-2021, is hereby quashed. iv. Consequently, if any proceeding initiated pursuant to the impugned assessment order including penalty proceedings under Section 272A of the Income Tax Act, 1961, shall not survive. - 7 - HC-KAR NC: 2026:KHC-D:978 WP No. 109407 of 2025 v. Matter is remitted back to the Assessing Authority at the stage of notice under Section 143 (2) dated 29.10.2021. vi. The petitioner is at liberty to file an additional reply, if any, and the Assessing Authority shall consider the same and pass a reasoned order after affording sufficient and reasonable opportunity to the petitioner in accordance with law. Sd/- JUSTICE K.S.HEMALEKHA AM/- List No.: 1 Sl No.: 93