Sri Ramanath Narayan Shetty Vs the Income Tax Officer

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NC: 2025:KHC:35833 WP No. 330 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF SEPTEMBER, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 330 OF 2025 (T-IT)

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BETWEEN:

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SRI RAMANATH NARAYAN SHETTY AGED 60 YEARS, S/O L NARAYAN SHETTY, NO 54/318, SURAKSHA 1ST FLOOR, 7TH MAIN 15TH CROSS, WILSON GARDEN BANGALORE SOUTH 560 030 PAN AOHPS86456F PREVIOUSLY AT NO 140, 14^TH CROSS, 9^TH MAIN ROAD, WILSON GARDEN, ADUGODI S.O, BAGNALORE SOUTH- 560 030.

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…PETITIONER

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(BY SRI. RAVI SHANKAR S V.,ADVOCATE)

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Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA

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AND:

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THE INCOME TAX OFFICER WARD NO 7(2)(3) BANGALORE 560 095

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PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX C R BUILDING, QUEENS ROAD BANGALORE 560 001

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…RESPONDENTS

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

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NC: 2025:KHC:35833 WP No. 330 of 2025

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HC-KAR

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THIS W.P. IS FILED PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(b) OF THE ACT DTD. 07.03.2023 BEARING DIN NO. ITBA/AST/F/148A(SCN)/202223/1050493750(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNX-A.QUASH THE NOTICE UNDER SECTION 148A(b) OF THE ACT DTD. 13.03.2023 BEARING DIN NO. ITBA/AST/F/148A(SCN)/202223/1050685718(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNX-A1.

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

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CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

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ORAL ORDER

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Heard the learned counsel Sri. Ravishankar S V, appearing for the petitioner and Sri. E I Sanmathi, learned counsel appearing for respondents.

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The Petitioner is before this Court seeking the following prayers:

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"i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under section 148A(b) of the 07/03/2023 bearing DIN No. ITBA/AST/F/14BA(SCN)/202223/1050493750(1), Issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A .

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ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 13/03/2023 bearing DIN No. ITBA/AST/F/148A(SCN)/2022-

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NC: 2025:KHC:35833 WP No. 330 of 2025

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23/1050685718(1) Issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A1 .

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iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the dated 27/03/2023 bearing DIN ITBA/AST/F/148A/202223/1051409592(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A2 .

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iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under section 148 of the Act, dated 28/03/2023 bearing DIN No. ITBA/AST/S/148_1/202223/1051511923(1), Issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A3 .

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v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed Under section 147 r.w.s 144 dated 15/03/2024 bearing DINS ITBA/AST/S/147/202324/1062697523(1) Issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure A4 .

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vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 27/09/2024 Issued under section 271(1)(c) of the Act bearing DIN No. ITBA/PNL/F/271(1)(C)/2024-25/1069226594(1), by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A5 .

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vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 27/09/2024 issued under section 271(1)(b) of the Act bearing DIN No. ITBA/PNL/F/271(1)(B)/2024-25/1069226605(1), by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A6 .

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NC: 2025:KHC:35833 WP No. 330 of 2025

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viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 27/09/2024 issued under section 271F of the Act bearing DIN No. ITBA/PNL/F/271(F)/2024-25/1069226648(1) by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A7 .

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ix) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity."

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Learned counsel appearing for the petitioner

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submits that the issue in the lis stands covered by the judgment rendered by the Division Bench in W.A. No. 612/2025 (T-IT) between THE INCOME TAX OFFICER AND OTHERS v. VENKATALA IYYAPPA RAJANNA ,

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disposed off on 05.08.2025, wherein the Division Bench has held as follows:

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" 2. The respondent [Assessee] had filed the said petition, inter alia, impugning a notice dated 20.03.2022 issued under Section 148A (b) of the Income Tax Act, 1961 [Act] for the assessment year [AY] 2015-16 on the ground that the said notice did not provide sufficient time for the Assessee to file a response to show cause calling upon him to show cause why it was not a fit case for issuance of a notice under Section 148 of the Act.

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3. The learned Single Judge has found merit in the aforesaid contention and accordingly, set aside the

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NC: 2025:KHC:35833 WP No. 330 of 2025

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impugned notice as well as the notice dated 31.03.2022 issued under Section 148A (d) of the Act and further reassessment proceedings that were initiated pursuant to the said notice.

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4. Before proceeding further, it would be relevant to refer to Section 148A of the Act, as was in force at the material time. The same is set out as below:

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"148A. Conducting inquiry, providing opportunity before issue of notice under section 148.

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The Assessing Officer shall, before issuing any notice under section 148,—

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(a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment;

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(b) provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);

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(c)consider the reply of assessee furnished, if any, in response to the

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NC: 2025:KHC:35833 WP No. 330 of 2025

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show-cause notice referred to in clause(b);

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(d)decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires:

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Provided that the provisions of this section shall not apply in a case where,—

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(a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or

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(b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or

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(c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case

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of any other person on or after the 1^st day of April, 2021, pertains or pertain to, or any information contained therein, 2[relate to, the assessee; or

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(d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.]

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5. It is clear from the plain reading of Clause (b) of Section 148A of the Act, that a notice under Section 148A(b) of the Act is required to provide an opportunity to the assessee to respond to the information which may suggests that the assessee’s income has escaped assessment. The minimum period of such notice is stipulated as "not less than seven days". In the present case, the impugned notice was issued on 20.03.2022 and the Assessee was called upon to furnish a reply on or before 25.03.2022. Indisputably, the impugned notice did not comply with the requirement of providing a minimum period of seven days to respond to the said notice.

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6. The impugned notice is contrary to law as rightly pointed out by the learned Single Judge."

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The Division Bench was affirming the order

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passed by the learned Single Judge on the identical issue.

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The learned counsel appearing for the Revenue would not

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dispute the position of law as it is laid down by the Division Bench. In that light, the petition deserves to

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NC: 2025:KHC:35833 WP No. 330 of 2025

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succeed with the same order that is passed by the Division

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Bench stated supra .

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5. For the aforesaid reasons, the following:

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ORDER

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The notices at Annexures-A and A1 are set aside and

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consequentially, all proceedings pursuant thereto i.e, order under Section 148-A(d) of the Act at Annexure-A2; the notice issued under Section 148 of the Act at Anenxure-3; order under Section 147 read with Section 144, 144B at Annexure-A4; the penalty order under Section 271A(1)(c)

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of the Act at Annexure-4;the order of penalty under Section 271(1) (b) of the Act at Annexure-A6; the penalty order under Section 271F of the Act are set aside.

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Ordered accordingly.

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Sd/(M.NAGAPRASANNA)

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JUDGE

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BSV List No.: 1 Sl No.: 213

Sri Ramanath Narayan Shetty v. the Income Tax Officer

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Sri Ramanath Narayan Shetty v. the Income Tax Officer

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