M R Jewels Vs the Assistant Commissioner of Income Tax — Income Tax | Karnataka HC (2025)

M R Jewels Vs the Assistant Commissioner of Income Tax — 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); Annexures D, E, G, J1, J2, J3, K, M1, M2, M3 and P quashed; liberty reserved to the Revenue to seek revival after disposal of the matters pending before the Apex Court; all rival contentions kept open with no opinion expressed.

Issue for consideration

Whether the electronically communicated approval u/s 151 dated 24/09/2024, the notices u/s 148 (03/10/2024) and u/s 143(2) (03/01/2025), the assessment order u/s 147 dated 27/03/2025, the allied demand notices u/s 156, computation sheets, penalty notice under S.274 r/w S.270A and order u/s 270A dated 26/09/2025 for AY 2022-23, together with Annexure P, ought to be quashed. +1 more

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).

Ratio / Principle

The operative order of the Co-ordinate Bench is applicable to the facts and circumstances of the instant case; consequently, the present petition deserves to be disposed of in terms of that judgment.

Key takeaways

The impugned show cause notices and consequential orders, notices etc. — Annexure-D dated 24.09.2024, Annexure-E dated 03.10.2024, Annexure-G dated 03.01.2025, Annexures-J1, J2, J3 and K all dated 27.03.2025, Annexures-M1, M2 and M3 all dated 26.09.2025, and Annexure-P — are hereby quashed.ratio¶78
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¶79

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru (S.R. Krishna Kumar, J.), W.P. No. 36136 of 2025 (T-IT), decided 01.12.2025 (NC: 2025:KHC:49981): M R Jewels, a partnership firm, sought quashing of the electronically communicated approval u/s 151 dated 24.09.2024 (Annexure D), notice u/s 148 dated 03.10.2024 (Annexure E), notice u/s 143(2) dated 03.01.2025 (Annexure G), assessment order u/s 147 dated 27.03.2025 (Annexure J1), demand notices u/s 156 and computation sheets (Annexures J2, J3, M2, M3), penalty notice under S.274 r/w S.270A dated 27.03.2025 (Annexure K) and order u/s 270A dated 26.09.2025 (Annexure M1), all for AY 2022-23, and further prayed that Explanation (2) to Section 148 be declared ultra vires the main provision of Section 148 (Annexure P). Holding the petition 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) — whose operative portion, as reproduced, obliterated show cause notices issued by the jurisdictional Assessing Officer outside the scope of Section 151-A — the Court allowed the petition, quashed all the listed annexures, reserved liberty to the Revenue to seek revival subsequent to disposal of the matters pending before the Apex Court, and kept all rival contentions open without expressing any opinion.

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NC: 2025:KHC:49981 WP No. 36136 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 1^ST DAY OF DECEMBER, 2025

BEFORE

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

WRIT PETITION NO. 36136 OF 2025 (T-IT)

BETWEEN:

M R JEWELS A PARTNERSHIP FIRM REGISTERED UNDER THE INDIAN PARTNERSHIP ACT 1932, NO. 61/24, 1ST FLOOR, 8TH F MAIN ROAD, 3RD BLOCK JAYANAGAR, BENGALURU 560 011, REP. BY ITS PARTNER, SMT. RISHMA JAIN, W/O MANISH LODHA, AGED ABOUT 38 YEARS,

…PETITIONER

(BY SRI. SHREEHARI KUSTA, ADVOCATE)

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2), BENGALURU CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU 560001, [email protected]

PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL), BENGALURU THE SPECIFIED AUTHORITY UNDER SECTION 151 OF THE INCOME TAX ACT 1961, CENTRAL REVENUE BUILDING, NAVANAGAR, HUBLI 580025

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NATIONAL FACELESS ASSESSMENT CENTRE (NFAC) A CENTRE DESCRIBED UNDER SECTION 144B, OF THE INCOME TAX ACT 1961, ROOM NO. 401, 2ND FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110003, REP BY PR. CHIEF COMMISSIONER OF INCOME TAX (NEAC)

ASSESSMENT UNIT A UNIT CREATED UNDER SECTION 144B, OF THE INCOME TAX ACT 1961, ROOM NO. 401, 2ND FLOOR, E RAMP, JAWAHARLAL NEHRU STADIUM, DELHI 110003, REP BY PR. CHIEF COMMISSIONER OF INCOME TAX (NEAC)

UNION OF INDIA REPRESENTED BY THE DIRECTOR, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, ROOM NO. 46 NORTH BLOCK, NEW DELHI 110001

…RESPONDENTS

(BY SRI.M.DILIP, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH OF THE ELECTRONICALLY COMMUNICATED APPROVAL U/S 151 OF THE INCOME TAX ACT, 1961, DATED 24/09/2024 ISSUED BY THE RESPONDENT NO. 2 FOR THE ASSESSMENT YEAR 2022-23 WHICH BEARS THE DIN NO. ITBA/AST/S/125/202425/1069016883(1) AND ENCLOSED AS ANNEXURE -D AND ETC.

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

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

ORAL ORDER

In this petition, the petitioner seeks the following reliefs:

"a. Issue a writ of certiorari or any other suitable writ for quashing of the electronically communicated Approval u/s 151 of the Income Tax Act, 1961, dated 24/09/2024 issued by the Respondent No.2 for the Assessment Year 2022-23 which bears the DIN No. ITBA/AST/S/125/2024-25/1069016883(1) and enclosed as Annexure D .

b. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice u/s 148 of the Income Tax Act, 1961 dated 03/10/2024 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN & Notice No. ITBA/AST/S/148_1/2024-25/ 1069359086(1) and enclosed as Annexure E .

c. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice u/s 143(2) of the Income Tax Act, 1961 dated 03/01/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN No. ITBA/AST/S/143(2)4/2024-25/ 1072136197(1) and enclosed as **Annexure G_** .

d. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Assessment Order u/s 147 of the Income Tax Act, 1961 dated 27/03/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the

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DIN & Order No. ITBA/AST/S/147/2024-25/ 1075106990(1) and enclosed as Annexure J1 .

e. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Notice of demand u/s 156 of the Income Tax Act, 1961 dated 27/03/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN & Notice No. ITBA/AST/S/156/2024-25/ 1075107160(1) and enclosed as Annexure J2.

f. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Computation Sheet dated 27/03/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN & Document No. ITBA/AST/S/522/2024-25/1075107093(1) and enclosed as Annexure J3 .

g. Issue a writ of certiorari or any other suitable writ for quashing of the digital signed and electronically communicated notice under section 274 read with section 270A of the Income Tax Act, 1961, dated 27/03/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN & Notice No. ITBA/PNL/S/270A/2024-25/ 1075107118(1) and enclosed as Annexure K.

h. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Order u/s 270A of the Income Tax Act, 1961, dated 26/09/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN No.ITBA/PNL/F/270A/2025-26/1081244104(1) and enclosed as Annexure M1 .

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i. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Notice of demand u/s 156 of the Income Tax Act, 1961, dated 26/09/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears DIN No.ITBA/PNL/S/156/2025-26/1081244046(1) and enclosed as Annexure M2 .

J. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated Computation Sheet, dated 26/09/2025 issued by the Respondent No.1 for the Assessment Year 2022-23 which bears the DIN No.2025202240423436856T and enclosed as Annexure M3 .

k. Declare that the Explanation (2) to Section 148 is ultra vires the main provision of section 148 of the Act which is enclosed as Annexure P .

l. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to COST OF THIS PETITION."

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

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HC-KAR

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.

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.

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(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."

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

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Annexure-D dated 24.09.2024, Annexure-E dated 03.10.2024, Annexure-G dated 03.01.2025, Annexures-J1, J2, J3, K all dated 27.03.2025, Annexures-M1, M2 and M3 all dated 26.09.2025 and Annexure-P 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

VM

List No.: 2 Sl No.: 23

Procedural history

How this case reached the court

AI extract

Order under challenge
Chain of electronically communicated income-tax documents for Assessment Year 2022-23 sought to be quashed: approval u/s 151 dated 24/09/2024 issued by Respondent No. 2 (DIN ITBA/AST/S/125/202425/1069016883(1), Annexure D); notice u/s 148 dated 03/10/2024 (Annexure E); notice u/s 143(2) dated 03/01/2025 (Annexure G); assessment order u/s 147 dated 27/03/2025 (Annexure J1); demand notice u/s 156 and computation sheet dated 27/03/2025 (Annexures J2, J3); penalty notice under S.274 r/w S.270A dated 27/03/2025 (Annexure K); order u/s 270A dated 26/09/2025 (Annexure M1); demand notice u/s 156 and computation sheet dated 26/09/2025 (Annexures M2, M3); and Annexure P.¶25
Respondent No. 1 — Assistant Commissioner of Income Tax, Central Circle 1(2), Bengaluru (notices/orders); approval u/s 151 issued by Respondent No. 2 — Principal Commissioner of Income Tax (Central), Bengaluru · 2025-03-27
Prior proceeding
Electronically communicated approval u/s 151 of the Income Tax Act, 1961 dated 24/09/2024 issued by Respondent No. 2 for AY 2022-23, DIN ITBA/AST/S/125/202425/1069016883(1), enclosed as Annexure D.¶33
Prior proceeding
Digitally signed and electronically communicated notice u/s 148 dated 03/10/2024 issued by Respondent No. 1 for AY 2022-23, DIN & Notice No. ITBA/AST/S/148_1/2024-25/ 1069359086(1), enclosed as Annexure E.¶34
Prior proceeding
Digitally signed and electronically communicated notice u/s 143(2) dated 03/01/2025 issued by Respondent No. 1 for AY 2022-23, DIN No. ITBA/AST/S/143(2)_4/2024-25/ 1072136197(1), enclosed as Annexure G.¶35
Prior proceeding
Digitally signed and electronically communicated assessment order u/s 147 dated 27/03/2025 issued by Respondent No. 1 for AY 2022-23, DIN & Order No. ITBA/AST/S/147/2024-25/ 1075106990(1), enclosed as Annexure J1.¶36
Prior proceeding
Penalty proceedings: notice under S.274 r/w S.270A dated 27/03/2025 (Annexure K) and order u/s 270A dated 26/09/2025 (Annexure M1, DIN ITBA/PNL/F/270A/2025-26/1081244104(1)) with consequential demand notice u/s 156 and computation sheet (Annexures M2, M3), all by Respondent No. 1 for AY 2022-23.¶44
Prior proceeding
Petitioner's prayer to declare the Explanation (2) to Section 148 ultra vires the main provision of Section 148, the document being enclosed as Annexure P.¶49

Cite this judgement

M R Jewels v. the Assistant Commissioner of Income Tax, WP/36136/2025 (KA), decided on 1 December 2025.

The High Court of Karnataka publishes no neutral citation for this judgement — cite it by case number and date of decision.

Cases cited1

Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-taxFollowed¶61

Open Authorities

Statutes12

Constitution of IndiaArticles 226 and 227
Indian Partnership Act 1932THE INDIAN PARTNERSHIP ACT 1932
Income Tax Act 1961151 · 144B · 148 · 148, Explanation (2) · 143(2) · 147 · 156 · 274 read with 270A · 270A · 151-A

View all statutes

Procedural history7

Chain of electronically communicated income-tax documents for Assessment Year 2022-23 sought to be quashed: approval u/s 151 dated 24/09/2024 issued by Respondent No. 2 (DIN ITBA/AST/S/125/202425/1069016883(1), Annexure D); notice u/s 148 dated 03/10/2024 (Annexure E); notice u/s 143(2) dated 03/01/2025 (Annexure G); assessment order u/s 147 dated 27/03/2025 (Annexure J1); demand notice u/s 156 and computation sheet dated 27/03/2025 (Annexures J2, J3); penalty notice under S.274 r/w S.270A dated 27/03/2025 (Annexure K); order u/s 270A dated 26/09/2025 (Annexure M1); demand notice u/s 156 and computation sheet dated 26/09/2025 (Annexures M2, M3); and Annexure P.Respondent No. 1 — Assistant Commissioner of Income Tax, Central Circle 1(2), Bengaluru (notices/orders); approval u/s 151 issued by Respondent No. 2 — Principal Commissioner of Income Tax (Central), Bengaluru · 2025-03-27
Electronically communicated approval u/s 151 of the Income Tax Act, 1961 dated 24/09/2024 issued by Respondent No. 2 for AY 2022-23, DIN ITBA/AST/S/125/202425/1069016883(1), enclosed as Annexure D.
Digitally signed and electronically communicated notice u/s 148 dated 03/10/2024 issued by Respondent No. 1 for AY 2022-23, DIN & Notice No. ITBA/AST/S/148_1/2024-25/ 1069359086(1), enclosed as Annexure E.

View full history

Bench / Coram

S.R. Krishna Kumar

Parties & counsel