Sri. Raghunandan Gangappa v. the Income Tax Officer
Case brief
What is this about?
Karnataka HC (M. Nagaprasanna J, 18.09.2025) allows WP 12751/2023 (T-IT): quashes CBDT Instruction No.1/2022 (F.No. 279/Misc/M-51/2022-IT, dt. 11.05.2022) and consequential reassessment order u/s 147 r.w.s. 144B, demand notice u/s 156 and penalty SCN u/s 274 r.w.s. 271(1)(c) dt. 29.05.2023 for AY 2015-16; SCN issued outside scope of Section 151-A of the Act stands obliterated; follows W.P.No.28182/2024 dt. 28.08.2025; liberty to revenue to revive if Supreme Court holds for Revenue; contentions otherwise left open. Keywords: Section 151-A; faceless assessment; NFAC; certiorari; AY 2015-16.
What did the court decide?
Petition allowed: the show cause notice issued outside the scope of Section 151-A of the Act is obliterated and all further proceedings challenged in the petition (reassessment order, demand notice and penalty show cause notice for AY 2015-16) are quashed; liberty reserved to the revenue to revive the petition if the Apex Court holds in favour of the Revenue in the pending matter; other contentions of both parties left open.