Ramakrishna Tapovan Vs National Faceless Assessment Centre (Nfac) — Income Tax | Karnataka HC (2025)

Ramakrishna Tapovan Vs National Faceless Assessment Centre (Nfac) — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition allowed; impugned assessment order, demand notice and computation of income (Annexures G1 to G3, all dated 28.03.2024) passed by the 1st respondent set aside; matter remitted to the 1st respondent for fresh consideration in accordance with law from the stage of considering the reply/submission dated 03.03.2024; liberty reserved to the petitioner to submit further response/reply with documents.

Issue for consideration

Whether the assessment order dated 28.03.2024 for AY 2022-23 passed by Respondent No. 1 is vitiated by violation of principles of natural justice owing to non-consideration of the petitioner's reply dated 03.03.2024 to the show-cause notice dated 28.02.2024.

Court's answer

The impugned notices and proceedings culminating in the impugned penalty order are violative of principles of natural justice because the 1st respondent passed the assessment order dated 28.03.2024 without considering the petitioner's reply dated 03.03.2024; consequently, the impugned order deserves to be set aside by adopting a justice-oriented approach.

Ratio / Principle

The matter is remitted to the 1st respondent for reconsideration afresh in accordance with law from the stage of considering the petitioner's reply/submission dated 03.03.2024, with liberty reserved to the petitioner to submit further response/reply along with documents.

Detailed headnote1 paragraphs

Income Tax - Assessment (AY 2022-23) - Principles of natural justice - Assessment order u/s 143(3) (Annexure G1), demand notice u/s 156 (G2) and computation of income (G3), all dated 28.03.2024, passed/issued by Respondent No. 1 (NFAC) without considering the petitioner's reply dated 03.03.2024 to the show-cause notice dated 28.02.2024 - Held violative of principles of natural justice - Writ petition under Articles 226 & 227 allowed; Annexures G1 to G3 set aside; matter remitted to Respondent No. 1 for fresh consideration from the stage of considering the reply dated 03.03.2024, with liberty to the petitioner to submit further response/documents; penalty notice u/s 274 r.w.s. 271AAC(1) (Annexure G4) also under challenge. (Single Judge: S.R. Krishna Kumar J.; decided 30.10.2025.)

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NC: 2025:KHC:43473 WP No. 13071 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30^TH DAY OF OCTOBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO. 13071 OF 2024 (T-IT)

BETWEEN:

RAMAKRISHNA TAPOVAN NEAR RAJARAJESHWARI TEMPLE, POLALI POST, KARIYANGALA VILLAGE, BANTWAL TALUK, BANTWAL – 574 219 REP. BY ITS MANAGING TRUSTEE SRI SWAMI VIVEKACHAITHANYANANDA S/O SHRI PERMANKY MAHABALA SHETTY AGED ABOUT 66 YEARS

…PETITIONER

(BY SRI. SHREEHARI KUTSA, ADVOCATE)

AND:

Digitally signed by CHANDANA B M Location: High Court of Karnataka

NATIONAL FACELESS ASSESSMENT CENTRE (NFAC) A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT 1961, ROOM NO.401 2^ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM DELHI – 110 003, REP. BY PR CHIEF COMMISSIONER OF INCOME TAX (NEAC)

DEPUTY COMMISSIONER OF INCOME TAX/ ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS) CIRCLE 1, MANGALURU THE JURISDICTIONAL OFFICER UNDER THE INCOME TAX ACT 1961, C. R. BUILDING, NANDI GUDDA ROAD, ATTAVARA, MANGALORE – 575 001 …RESPONDENTS

(BY SRI. ARAVIND V. CHAVAN, ADVOCATE)

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THIS W.P. IS FILED UNDER ARTICLE 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE U/S 143(2) OF THE INCOME TAX ACT, 1961 DATED 01/06/2023 ISSUED BY THE RESPONDENT NO. FOR THE ASSESSMENT YEAR 2022-23 WHICH BEARS THE DIN NO. VIZ.. ITBA/AST/S/143(2)/2023-24/1053426122(1) AND ENCLOSED AS ANNEXURE C1 AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:-

“a. Issue a writ of certiorari or any other suitable writ for quashing of the notice u/s 143(2) of the Income Tax Act, 1961 dated 01/06/2023 issued by the Respondent No. 1 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(2)/2023-24/1053426122(1) and enclosed as Annexure C1.

b. Issue a writ of certiorari or any other suitable writ for quashing of the assessment order under section 143(3) r.w.s 1448 of the Income Tax Act, 1961 dated 28/03/2024 passed by the Respondent No. 1 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/AST/S/143(3)/2023-24/1063556440(1) and enclosed as Annexure G1.

c. Issue a writ of certiorari or any other suitable writ for quashing of the notice of demand under section 156 of the Income Tax Act, 1961 dated 28/03/2024 issued by the Respondent No. 1 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/156/202324/1063556621(1) and enclosed as Annexure G2.

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d. Issue a writ of certiorari or any other suitable writ for quashing of the computation of income dated 28/03/2024 issued by the Respondent No. 1 for the Assessment Year 2022-23 which bears the DIN viz ITBA/AST/S/722/2023-24/1063556748(1) and enclosed as Annexure G3.

e. Issue a writ of certiorari or any other suitable writ for quashing of the notice for penalty under section 274 r.w.s. 271AAC(1) of the Income-tax Act, 1961 dated 28/03/2024 issued by the Respondent No. 1 for the Assessment Year 2022-23 which bears the DIN viz ITBA/PNL/S/271AAC(1)/2023-24/1063556793(1) and enclosed as Annexure G4.

f. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to COSTS OF THIS PETITION.”

Heard learned counsel for the parties and perused the

material on record.

In addition to reiterating various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invited my attention to the reply/submission dated 03.03.2024 at Annexure-F2 to point out that pursuant to the showcause notice dated 28.02.2024 issued by the 1^st respondent, the petitioner filed the aforesaid reply to the said show-cause notice. Further, the 1^st respondent passed an Assessment order dated

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28.03.2024. The counsel for the petitioner pointed out to the impugned order dated 28.03.2024 in order to show that the 1^st respondent did not consider the reply dated 03.03.2024 filed by the petitioner and proceeded to pass the impugned order thereby violating principles of natural justice and as such, the petitioner is before this Court by way of present petition.

Per contra, learned counsel for the respondents-revenue submits that there is no merit in the petition and that the same is liable to be dismissed.

A perusal of the impugned order will indicate that the petitioner filed its reply dated 03.03.2024 to the notice issued by the respondent dated 28.02.2024 It is also borne out from the impugned order dated 28.03.2024 that the 1^st respondent has not considered the reply dated 03.03.2024 filed by the petitioner and has proceeded to pass the impugned order. Under these circumstances, I am of the considered opinion that the impugned notices, proceedings culminating in the impugned penalty order is violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting justice

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oriented approach and by directing the 1^st respondent to consider the reply dated 03.03.2024 filed by the petitioner and thereafter proceed further in accordance with law.

In the result, I pass the following:-

ORDER

(i) The petition is hereby allowed.

(ii) The impugned Assessment order, demand notice and computation of income at Annexures-G1 to G3, all dated 28.03.2024, passed by the 1^st respondent are hereby set aside.

(iii) The matter is remitted back to the 1^st respondent for reconsideration afresh in accordance with law from the stage of considering the reply/submission dated 03.03.2024 filed by the petitioner.

(iv) Liberty is reserved in favour of the petitioner to submit his response/reply along with the documents to the 1^st respondent, who shall consider the same and proceed further in accordance with law.

Sd/(S.R.KRISHNA KUMAR) JUDGE

BMC: List No.: 1 Sl No.: 28