Sri. B Basavaiah Vs Assessment Unit — Writ and Judicial Review | Karnataka HC (2025)

Sri. B Basavaiah Vs Assessment Unit — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition allowed and disposed of in terms of the Co-ordinate Bench decision: the impugned show cause notices and consequential orders, notices, computation sheets and demand notices at Annexures A1-A10 and B1-B5 are quashed; liberty reserved to the respondents-Revenue to seek revival of the petition after disposal of the matters pending before the Apex Court; rival contentions kept open with no opinion expressed.

Issue for consideration

Whether the writ petition seeking quashing of the notices, show cause notices, assessment order, penalty order, computation sheets and demand notices at Annexures A1-A10 and B1-B5 relating to AY 2020-21 deserves to be allowed and disposed of in terms of the Co-ordinate Bench decision in Ramachandra Reddy Ravi Kumar v. Deputy Commissioner of Income-tax (W.P. No. 17352/2022 and connected matters, dated 28.08.2025).

Court's answer

The present petition is directly and squarely covered by the decision of the Co-ordinate Bench of this Court in Ramachandra Reddy Ravi Kumar v. Deputy Commissioner of Income-tax (W.P. No. 17352/2022 and connected matters, dated 28.08.2025), and therefore deserves to be disposed of in terms of that order.

Ratio / Principle

The impugned show cause notices and consequential orders, notices etc., at Annexures A1, A2, A3, A4, A5, A6, A7, A8, A9, A10, B1, B2, B3, B4 and B5 are hereby quashed.

Key takeaways

Liberty is reserved in favour of the respondents - Revenue to seek revival of this petition subsequent to disposal of the matters pending before the Apex Court.ratio¶90
All rival contentions between the parties in this regard are kept open and no opinion is expressed on the same.obiter¶90

Detailed headnote1 paragraphs

Writ Petition (T-IT) WP No. 34033 of 2025, High Court of Karnataka at Bengaluru, oral order of S.R. Krishna Kumar J dated 14.11.2025. An individual petitioner sought certiorari against fifteen Income-Tax Department documents for AY 2020-21: notice under Section 142(1) (07.06.2024), show cause notices (09.11.2024; 02.12.2024), assessment order under section 147 read with section 144 read with section 144B with computation sheet, demand notice under section 156 and penalty show-cause notice under section 274 read with section 271AAC(1) (all 23.12.2024), penalty order under section 271AAC(1) with computation sheet and demand notice under section 156 (11.06.2025), all issued by Respondent No.1; enquiry letter under section 148A(a) (15.01.2024), show cause notice under section 148A(b) (02.02.2024), order under section 148A(d) and notice under section 148 (both 27.03.2024) issued by Respondent No.2; and approval under section 151 (26.03.2024) issued by Respondent No.3. Holding the petition 'directly and squarely covered' by a Co-ordinate Bench decision (Ramachandra Reddy Ravi Kumar v. Deputy Commissioner of Income-tax, W.P. No. 17352/2022 and connected matters, dated 28.08.2025), in which show cause notices issued outside the scope of Section 151-A had been obliterated, the Court allowed and disposed of the petition in terms of that decision: Annexures A1-A10 and B1-B5 were quashed; liberty was reserved to the Revenue to seek revival after disposal of the matters pending before the Apex Court; rival contentions were kept open and no opinion expressed on them. The judgment refers to the parent statute only as 'the Act' and nowhere names it.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14^TH DAY OF NOVEMBER, 2025

BEFORE

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

WRIT PETITION NO. 34033 OF 2025 (T-IT)

BETWEEN:

SRI. B BASAVAIAH, S/O SRI. BULLAIAH, AGED ABOUT 54 YEARS, BIDARE POST, GUDDADAHALLI, GUBBI TALUK, TUMKUR DISTRICT – 572 117, KARNATAKA, INDIA PAN: AEXPB5072L

…PETITIONER

(BY SRI. ANNAMALAI S., ADVOCATE)

AND:

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

ASSESSMENT UNIT INCOME TAX DEPARTMENT, REP. BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISISONER OF INCOME TAX/ INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2^ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003.

THE INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER, WARD 1 AND TPS, TUMKUR, AAYAKAR BHAVAN, RAMAKRISHNANAGAR, KUNIGAL ROAD, RAMAKRISHNA NAGAR, TUMKUR, KARNATAKA – 572 103

THE PRINCIPAL COMMISSIONER OF INCOME TAX, OFFICE OF PRINCIPAL COMMISSIONER OF INCOME TAX, PCIT, BENGALURU-2,

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BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, KARNATAKA – 560 095

…RESPONDENTS

(BY SRI. M. DILIP, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE NOTICE UNDER SECTION 142(1) OF THE ACT DATED 07.06.2024 ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2020-21 BEARING DIN NO. ITBA/AST/F/142(1)/202425/1065458145(1) AND THE SAME IS ENCLOSED AND MARKED AS ANNEXURE A1 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:-

i. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 142(1) of the Act dated 07.06.2024 issued by the Respondent No.1 for the assessment year 2020-21 bearing DIN No. ITBA/AST/F/142(1)/202425/ 1065458145(1) and the same is enclosed and marked as Annexure 'A1'.

ii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 09.11.2024 Issued by the Respondent No.1 for the assessment year 2020-21 DIN bearing No. ITBA/AST/F/144(SCN)(F)/2024-25/1070222102(1)

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and the same is enclosed and marked as Annexure 'A2'

iii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 02.12.2024 issued by the Respondent No.1 for the assessment year 2020-21 bearing DIN No. ITBA/AST/F/144(SCN)/202425/1070805159(1) and the same is enclosed and marked as Annexure 'A3'.

iv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 23.12.2024 passed by the Respondent No.1 for the assessment year 2020-21 under section 147 read with section 144 read with section 144B of the Act bearing DIN No. ITBA/AST/S/147/2024-25/1071505709(1) and the same is enclosed and marked as Annexure 'A4'.

v. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 23.12.2024 issued by the Respondent No.1 for the assessment year 2020-21 bearing DIN & Document Number ITBA/AST/S/330/202425/1071506220(1) and the same is enclosed and marked as Annexure 'A5'.

vi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 23.12.2024 issued by the Respondent No.1 for the assessment year 2020-21 under section 156 of the Act bearing DIN & Notice No.

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ITBA/AST/S/156/202425/1071506626(1) and the same is enclosed and marked as Annexure 'A6'.

vii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice dated 23.12.2024 issued by the Respondent No.1 for the assessment year 2020-21 under section 274 read with section 271AAC(1) of the Act bearing DIN No. ITBA/PNL/S/271AAC(1)/2024-25/1071507001(1) and the same is enclosed and marked as Annexure 'A7'.

viii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 11.06.2025 passed by the Respondent No.1 for the assessment year 2020-21 under section 271AAC(1) of the Act bearing DIN No. ITBA/PNL/F/271AAC(1)/202526/1076914763(1) and the same is enclosed and marked as Annexure 'A8'.

ix. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 11.06.2025 Issued by the Respondent No.1 for the assessment year 2020-21 bearing DIN & Order Number ITBA/PNL/S/271AAC(1)/202425/1071507001(1) and the same is enclosed and marked as Annexure 'A9'.

x. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 11.06.2025 issued by the Respondent No.1 for the assessment year 2020-21 under section 156 of the

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Act bearing DIN & Notice No. ITBA/PNL/S/156/202526/1076911397(1) and the same is enclosed and marked as Annexure 'A10'.

xi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the enquiry letter issued under section 148A(a) of the Act dated 15.01.2024 issued by the Respondent No.2 for the assessment year 2020-21 bearing DIN & Letter No. ITBA/AST/F/17/2023-24/1059699177(1) and the same is referred as Annexure 'B1'.

xii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice issued under section 148A(b) of the Act dated 02.02.2024 issued by the Respondent No.2 for the assessment year 2020-21 bearing DIN & Notice No. ITBA/AST/F/148A(SCN)/202324/1060450297(1) and the same is referred as Annexure 'B2'.

xiii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under section 148A(d) of the Act dated 27.03.2024 by the Respondent No.2 for the assessment year 2020-21 bearing DIN & Notice No. ITBA/AST/F/148A/202324/1063427767(1) and the same is referred as Annexure 'B3'.

xiv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under section 148 of the Act dated 27.03.2024 bearing DIN

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& Notice No. ITBA/AST/S/148_1/202324/1063437125(1) issued by the Respondent No.2 for the assessment year 2020-21 and the same is referred as Annexure 'B4'.

xv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the approval issued under section 151 of the Act dated 26.03.2024 bearing DIN & Notice No. ITBA/AST/S/118/202324/1063403112(1) issued by the Respondent No.3 for the assessment year 2020-21 and the same is referred as Annexure 'B5'.

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

Heard learned counsel for the petitioner and learned

counsel for the respondents and perused the material on record.

In addition to reiterating the various contentions urged

in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the order of a Co-ordinate Bench of this Court in the case of Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax - W.P.No.17352/2022 and connected matters -

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dated 28.08.2025 , in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order.

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

As rightly contended by the learned counsel for the petitioner the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of

Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax - W.P.No.17352/2022 and connected matters -

dated 28.08.2025, the operative portion of which reads as under:

"13. I, therefore, pass the following:

O R D E R

(i) The impugned show cause notices 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 these cases would stand quashed.

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

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(iii) With the aforesaid liberty and to the aforesaid extent, the petitions are allowed.

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

The aforesaid order is applicable to the facts and circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of co-ordinate Bench of this Court in Ramachandra Reddy's case

supra .

In the result, I pass the following:

ORDER

(i) The petition is allowed and disposed of in terms of the decision of a Co-ordinate Bench of this Court in the case of Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax - W.P.No.17352/2022 and connected matters - dated 28.08.2025.

(ii) The impugned show cause notices and consequential orders, notices etc., at AnnexuresA1, A2, A3, A4, A5, A6, A7, A8, A9, A10, B1, B2, B3, B4 and B5 dated 07.06.2024, 09.11.2024,

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02.12.2024, 23.12.2024, 23.12.2024, 23.12.2024, 23.12.2024, 11.06.2025, 11.06.2025, 11.06.2025, 15.01.2024, 02.02.2024, 27.03.2024, 27.03.2024 and 26.03.2024 respectively are hereby quashed.

(iii) Liberty is reserved in favour of the respondents - Revenue to seek revival of this petition, subsequent to disposal of the matters pending before the Apex Court and all rival contentions between the parties in this regard are kept open and no opinion is expressed on the same.

Sd/(S.R.KRISHNA KUMAR) JUDGE

MDS

List No.: 2 Sl No.: 44

Procedural history

How this case reached the court

AI extract

Order under challenge
Assessment order dated 23.12.2024 for AY 2020-21 passed by Respondent No.1 under section 147 read with section 144 read with section 144B of the Act (DIN ITBA/AST/S/147/2024-25/1071505709(1), Annexure A4), together with the penalty order dated 11.06.2025 under section 271AAC(1) of the Act (Annexure A8) and the associated notices, show cause notices, computation sheets and demand notices (Annexures A1-A10, B1-B5), all sought to be quashed.¶35
Respondent No.1 - Assessment Unit, Income Tax Department · 23.12.2024
Prior proceeding
Notice under Section 142(1) of the Act dated 07.06.2024 issued by Respondent No.1 for AY 2020-21 (DIN ITBA/AST/F/142(1)/202425/1065458145(1)), Annexure A1.¶28
Prior proceeding
Show cause notice dated 09.11.2024 issued by Respondent No.1 for AY 2020-21 (DIN ITBA/AST/F/144(SCN)(F)/2024-25/1070222102(1)), Annexure A2.¶29
Prior proceeding
Show cause notice dated 02.12.2024 issued by Respondent No.1 for AY 2020-21 (DIN ITBA/AST/F/144(SCN)/202425/1070805159(1)), Annexure A3.¶34
Prior proceeding
Computation sheet dated 23.12.2024 issued by Respondent No.1 for AY 2020-21 (DIN ITBA/AST/S/330/202425/1071506220(1)), Annexure A5.¶36
Prior proceeding
Demand notice dated 23.12.2024 under section 156 of the Act issued by Respondent No.1 for AY 2020-21 (DIN ITBA/AST/S/156/202425/1071506626(1)), Annexure A6.¶37
Prior proceeding
Show-cause notice dated 23.12.2024 under section 274 read with section 271AAC(1) of the Act issued by Respondent No.1 (DIN ITBA/PNL/S/271AAC(1)/2024-25/1071507001(1)), Annexure A7.¶42
Prior proceeding
Penalty order dated 11.06.2025 under section 271AAC(1) of the Act passed by Respondent No.1 (DIN ITBA/PNL/F/271AAC(1)/202526/1076914763(1)), Annexure A8.¶43
Prior proceeding
Computation sheet dated 11.06.2025 issued by Respondent No.1 for AY 2020-21 (DIN ITBA/PNL/S/271AAC(1)/202425/1071507001(1)), Annexure A9.¶44
Prior proceeding
Demand notice dated 11.06.2025 under section 156 of the Act issued by Respondent No.1 for AY 2020-21 (DIN ITBA/PNL/S/156/202526/1076911397(1)), Annexure A10.¶45
Prior proceeding
Enquiry letter under section 148A(a) of the Act dated 15.01.2024 issued by Respondent No.2 for AY 2020-21 (DIN ITBA/AST/F/17/2023-24/1059699177(1)), Annexure B1.¶50
Prior proceeding
Show cause notice under section 148A(b) of the Act dated 02.02.2024 issued by Respondent No.2 for AY 2020-21 (DIN ITBA/AST/F/148A(SCN)/202324/1060450297(1)), Annexure B2.¶51
Prior proceeding
Order under section 148A(d) of the Act dated 27.03.2024 passed by Respondent No.2 for AY 2020-21 (DIN ITBA/AST/F/148A/202324/1063427767(1)), Annexure B3.¶52
Prior proceeding
Notice under section 148 of the Act dated 27.03.2024 issued by Respondent No.2 for AY 2020-21 (DIN ITBA/AST/S/148_1/202324/1063437125(1)), Annexure B4.¶53
Prior proceeding
Approval under section 151 of the Act dated 26.03.2024 issued by Respondent No.3 for AY 2020-21 (DIN ITBA/AST/S/118/202324/1063403112(1)), Annexure B5.¶58