Mr. Bhuvanendragowda Vs Assessment Unit — Income Tax | Karnataka HC (2025)

Mr. Bhuvanendragowda Vs Assessment Unit — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition 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); the impugned show cause notices and consequential orders/notices at Annexures A, A1, B, B1, B2, C, C1, C2, D, D1, D2 and E for AY 2016-17 are quashed, with liberty to the Revenue to seek revival after disposal of the matters pending before the Apex Court and all rival contentions kept open.

Issue for consideration

Whether the present petition challenging the Section 148 notice, Section 148A(d) order, assessment order and allied demand/penalty proceedings for AY 2016-17 is directly and squarely covered by 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) and deserves to be disposed of in terms of that decision. +1 more

Court's answer

The order of the co-ordinate Bench in Ramachandra Reddy Ravi Kumar v. Deputy Commissioner of Income-tax (W.P. No. 17352/2022 and connected matters, dated 28.08.2025) is applicable to the facts and circumstances of the instant case, and the present petition deserves to be disposed of in terms of that judgment.

Ratio / Principle

The impugned show cause notices and consequential orders, notices etc. - Annexure-A dated 29.03.2023 (Section 148 notice), Annexure A1 dated 29.03.2023 (Section 148A(d) order), Annexures B, B1, B2 dated 29.12.2023 (assessment order, computation sheet, demand notice), Annexures C, C1, C2 dated 25.03.2024 (penalty order under Section 271(1)(b) and consequentials), Annexures D, D1, D2 dated 02.05.2024 (penalty order under Section 271F and consequentials) and Annexure E dated 20.03.2023 (Section 151 approval/sanction) - are quashed.

Key takeaways

Liberty is reserved to the respondents-Revenue to seek revival of the petition subsequent to disposal of the matters pending before the Apex Court, and all rival contentions between the parties in that regard are kept open with no opinion expressed thereon.ratio¶82

Detailed headnote1 paragraphs

Income-Tax Act, 1961 - ss. 148, 148A(d), 147, 144, 144B, 156, 271(1)(b), 271F, 151 - writ petition under Article 226 by assessee (AY 2016-17) seeking quashing of the notice dated 29.03.2023 under s.148, the order dated 29.03.2023 under s.148A(d), the assessment order dated 29.12.2023 under s.147 r/w ss.144 and 144B, notices of demand under s.156, penalty orders under ss.271(1)(b) and 271F, and the approval/sanction dated 20.03.2023 under s.151 - HELD: the petition is directly and squarely covered by 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, wherein show cause notices issued outside the scope of s.151-A were obliterated and consequential proceedings quashed - petition allowed and disposed of in terms of that decision; Annexures A, A1, B, B1, B2, C, C1, C2, D, D1, D2 and E quashed - liberty reserved to the Revenue to seek revival after disposal of the matters pending before the Apex Court, all rival contentions kept open and no opinion expressed.

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NC: 2025:KHC:46302 WP No. 34103 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13^TH DAY OF NOVEMBER, 2025

BEFORE

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

WRIT PETITION NO. 34103 OF 2025 (T-IT)

BETWEEN:

MR. BHUVANENDRAGOWDA S/O LATE GAVI RANGE GOWDA AGED ABOUT 63 YEARS, (SENIOR CITIZENS BENEFIT NOT CLAIMED) RESIDING AT 332, 4^TH MAIN ROAD, VIJAYANAGARA, BANGALORE NORTH, BANGALORE – 560040.

…PETITIONER

(BY SRI. JANAK PUROHIT., ADVOCATE FOR SRI. SANDEEP HUILGOL., ADVOCATE)

AND:

Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA

ASSESSMENT UNIT

NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, 2^ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110003.

INCOME TAX OFFICER, WARD 3(2)(1), BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, KORAMANGALA, BANGALORE – 560095.

INCOME TAX OFFICER, WARD 5(1)(1), BANGALORE,

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BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, KORAMANGALA, BANGALORE - 560095

PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, KARNATAKA AND GOA, CR BUILDING, NO. 1, QUEENS ROAD, BANGALORE – 560001.

…RESPONDENTS

(BY SRI.M.THIRUMALESH., ADVOCATE)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO (I) QUASHING THE IMPUGNED NOTICE DATED 29.03.2023 BEARING DIN AND NOTICE NO. ITBA/AST/S/148-1/2022-23/1051587776(1) ISSUED BY RESPONDENT NO. 3 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961 FOR ASSESSMENT YEAR 2016-17 (ANNEXURE A) AND ETC.

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

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

ORAL ORDER

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

(i) Quashing the impugned notice dated 29.03.2023 bearing DIN and Notice no. ITBA/AST/S/148_1/202223/1051587776(1) issued by Respondent no. 3 under

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Section 148 of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure 'A') ;

(ii) Quashing the impugned order dated 29.03.2023 bearing DIN & Notice No. ITBA/AST/F/148A/202223/1051538421(1) issued by Respondent no. 3 under Section 148A(d) of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure A1) ;

(iii) Quashing the impugned Assessment order dated 29.12.2023 bearing DIN no. ITBA/AST/S/147/202324/1059175302(1) passed by Respondent no. 1 under Section 147 read with section 144 read with section 144B of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure B) ;

(iv) Quashing the impugned Computation Sheet dated 29.12.2023 bearing DIN no. ITBA/AST/S/114/202324/1059175334(1) passed by Respondent no. 1 for Assessment Year 2016-17 (Annexure B1) ;

(v) Quashing the impugned Notice of Demand dated 29.12.2023 bearing DIN no. ITBA/AST/S/156/202324/1059175364(1) issued by Respondent no. 1 under Section 156 of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure B2) ;

(vi) Quashing the impugned Penalty order dated 25.03.2024 bearing DIN no. ITBA/PNL/F/271(1)(b)/2023

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passed by Respondent no. 1 under Section 271(1)(b) of the Income-Tax Act, 1961 for assessment year 2016-17 (Annexure 'C') ;

(vii) Quashing the impugned Computation Sheet dated 25.03.2024 passed by Respondent no. 1, bearing DIN no. ITBA/PNL/F/271(1)(b)/2023-24/1057179309(1) Assessment Year 2016-17 (Annexure 'C1') ;

(viii) Quashing the impugned Notice of Demand, dated 25.03.2024 bearing DIN no. ITBA/PNL/S/156/202324/1063332285(1) passed by Respondent no. 1 under Section 156 of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure 'C2') ;

(ix) Quashing the impugned Penalty Order dated 02.05.2024 bearing DIN no. ITBA/PNL/F/271F/202425/1064570914(1) passed by Respondent no. 1 under Section 271F of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure 'D') ;

(x) Quashing the impugned Computation Sheet dated 02.05.2024 passed by Respondent no. 1 bearing DIN No.ITBA/PNL/S/271F/2023-24/1059175450(1) for Assessment Year 2016-17 (Annexure D1) ;

(xi) Quashing the impugned Notice of Demand dated 02.05.2024 passed by Respondent no. 1 under Section 156 of the Act, bearing DIN no. ITBA/PNL/S/156/2024-

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25/1064567060(1) of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure D2) ;

(xii) Quashing the impugned Approval/Sanction dated 20.03.2023 issued by Respondent no. 4, bearing DIN no. ITBA/AST/S/118/2022-23/1051012712(1) issued under Section 151 of the Income-Tax Act, 1961 for Assessment Year 2016-17 (Annexure 'E') .

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 - 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.

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HC-KAR

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.

(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."

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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 Annexure-A dated 29.03.2023, Annexure 'A1' dated 29.03.2023, Annexure 'B' dated 29.12.2023, Annexure 'B1' dated 29.12.2023, Annexure 'B2' dated 29.12.2023, Annexure 'C' dated 25.03.2024, Annexure 'C1' dated 25.03.2024, Annexure 'C2' dated 25.03.2024, Annexure 'D' dated 02.05.2025, Annexure 'D1' dated 02.05.2024, Annexure 'D2' dated 02.05.2024 and Annexure 'E' dated 20.03.2023 are hereby quashed.

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(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

JT/CT:JL