Usha Saraogi Vs Income Tax Officer — Writ and Judicial Review | Karnataka HC (2025)

Usha Saraogi Vs Income Tax Officer — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Show cause notice under Section 148A(d) dated 27.07.2022 obliterated and all further proceedings challenged in the petition (Section 148 notice, assessment order under Sections 147 r/w 144B and computation sheet dated 26.05.2023, demand notice under Section 156, penalty notice u/s 274 r/w 271(1)(c), penalty order u/s 274 r/w 271(1)(b) dated 01.03.2024) quashed; liberty reserved to the revenue to revive the petition if the Apex Court holds in favour of the Revenue; other contentions of both parties left open.

Issue for consideration

Whether the show cause notice under Section 148A(d) dated 27.07.2022 and the consequential reassessment proceedings for AY 2013-14, initiated outside the scope of Section 151-A of the Act, are liable to be quashed.

Court's answer

The impugned show cause notice issued by the jurisdictional Assessing Officer outside the scope of Section 151-A of the Act stands obliterated, and all further proceedings initiated thereto and challenged in the petition stand quashed.

Ratio / Principle

Since the grounds are identical to those in W.P.No.28182/2024 and connected matters (disposed 28.08.2025), the reasons rendered therein become applicable and the petition is disposed on the same lines.

Key takeaways

Liberty is reserved to the respondents-revenue to revive the petition if the Apex Court holds in favour of the Revenue in the matter pending before it; contentions of both parties, except the point noted, remain open for consideration in the event of revival.ratio¶53

Detailed headnote1 paragraphs

Karnataka High Court (M. Nagaprasanna J.), by oral order dated 18.09.2025 in WP No. 10189 of 2024 (T-IT), Usha Saraogi v. Income Tax Officer Ward 7(2)(5) & others, allowed the writ petition on the same lines as its order in W.P.No.28182/2024 and connected matters disposed on 28.08.2025, the grounds being identical. The Court held that the impugned show cause notice issued by the jurisdictional Assessing Officer outside the scope of Section 151-A of the Act stands obliterated, and all further proceedings challenged in the petition stand quashed — covering the Section 148A(d) order dated 27.07.2022, the manual Section 148 notice dated 27.07.2022 without DIN, the assessment order under Sections 147 r/w 144B dated 26.05.2023, the computation sheet, the Section 156 demand notice, the penalty notice u/s 274 r/w 271(1)(c) and the penalty order u/s 274 r/w 271(1)(b) dated 01.03.2024, all for AY 2013-14. Liberty was reserved to the revenue to revive the petition if the Apex Court holds in favour of the Revenue in the matter pending before it; all other contentions were left open.

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NC: 2025:KHC:37389 WP No. 10189 of 2024

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18^TH DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 10189 OF 2024 (T-IT)

BETWEEN:

USHA SARAOGI AGED 59 YEARS, D/O MAHAVIR PRASAD AGGARWAL NO.4071, 30TH CROSS, BSK 2ND STAGE, BANGALORE- 560070. PAN. AAYPD5079N

…PETITIONER

(BY SRI. SUDHEENDRA B R.,ADVOCATE)

AND:

Digitally signed by NAGAVENI Location: High Court of Karnataka

INCOME TAX OFFICER WARD 7(2)(5), BANGALORE BMTC BUILDING, 4TH FLOOR, 80 FEET ROAD, KORAMANGALA, BANGALORE - 560 095.

PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GAO, CR BUILDING NO.1 QUEENS ROAD, BANGALORE - 560 001.

CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, CENTRAL SECRETARIAT,

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NC: 2025:KHC:37389 WP No. 10189 of 2024

HC-KAR

NEW DELHI

DELHI - 110 001 REPRESENTED BY THE SECRETARY, TAX POLICY AND LEGISLATIVE DIVISION

NATIONAL FACELESS ASSESSMENT CENTRE, REP BY ADDITION/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 - 110 003.

…RESPONDENTS

(BY SRI. E.I.SANMATHI., ADVOCATE)

THIS WP IS FILED UNDER ARTILCES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER UNDER SECTION 148A(d) NOTICE DTD 27.07.2022 PASSED BY THE R1 FOR THE ASSESSMENT YEAR 2013.14(ANNEXURE-F)., AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC:37389 WP No. 10189 of 2024

HC-KAR

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

The petitioner is before this Court seeking the following prayers:

“(A) Quashing the order under section 148A(d) dated 27.7.2022 passed by the Respondent No. 1 for the assessment year 2013-14 (Annexure F)

(B) Quashing the manual notice dated 27.07.2022 issued by the Respondent No. 1 under Section 148 of the Act for the assessment year 2013-14 without DIN (Annexure G)

(C) Quashing the assessment order passed by the Respondent No. 4 under Section 147 rws 144B of the Act dated 26.05.2023 bearing DIN and Notice No ITBA/AST/S/147/2023-24/1053229134(1) for the AY 2013-14 (Annexure J)

(D) Quashing the Computation sheet issued by the Respondent No. 4 dated 26.05.2023 bearing DIN and Document No. ITBA/AST/S/114/202324/1053229169(1) for the AY 2013-14 (Annexure K)

(E) Quashing the Notice of demand under section 156 issued by the Respondent No. 4 dated 26.05.2023 bearing DIN and Notice No. ITBA/AST/S/156/2023-24/1053229160(1) for (Annexure L) the AY 2013-14

(F) Quashing the Penalty notice dated 26.05.2023 issued u/s 274 rws 271(1)(c) bearing DIN and Notice No. ITBA/PNL/S/271(1)(c)/202324/1053229183(1) for the AY 2013-14 (Annexure M)

(G) Quashing the Penalty order dated 01.03.2024 Issued u/s 274 rws 271(1)(b) bearing DIN and Notice No. ITBA/PNL/F/271(1)(b)/2023-

4 - NC: 2025:KHC:37389 WP No. 10189 of 2024

HC-KAR

24/1061844820(1) for the AY 2013-14 (Annexure P)

(H) Quashing the instruction bearing No. 1/2022 (F. No. 279/Misc/M-51/2022-ITJ) dated 11.05.2022 issued by the 3rd Respondent (Annexure Q), to the extent questioned herein;

And

(I) Passing such other or further orders as this Honourable High Court may think fit in the facts and circumstances of the case, in the interests of justice and equity."

Heard Shri Sudheendra B.R., learned counsel

appearing for the petitioner and Shri E.I. Sanmathi, learned counsel appearing for the respondents.

The grounds projected in the subject petition in support of the prayer quoted supra are identical to the ones considered by this Court in W.P.No.28182/2024 and connected matters, disposed on 28.08.2025.

In the light of the issue being similar and the reasons rendered therein becomes applicable to the case at hand, the petition deserves to be disposed on the same lines. Therefore, I pass the following:

5 - NC: 2025:KHC:37389 WP No. 10189 of 2024

HC-KAR

ORDER

(i) The impugned show cause notice issued by the jurisdictional Assessing Officer outside the scope of Section 151-A of the Act stand obliterated. All further proceedings initiated thereto, challenged in this petition would stand quashed.

(ii) Liberty is reserved to the respondents - revenue to revive the petition in the event, the Apex Court would hold in favour of the Revenue in the matter pending before it.

(iii) With the aforesaid liberty and to the aforesaid extent, the petition is allowed.

(iv) Contentions of both the parties except the one noted hereinabove, shall remain open to be considered in the event revival of this petition would become necessary.

Sd/(M.NAGAPRASANNA) JUDGE

JY List No.: 1 Sl No.: 58