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Sri Kemparaju Krishnappa v. Deputy Commissioner of Income Tax

Karnataka HC19 Nov 2025WP/9275/2022

Case brief

AI extract

What is this about?

Karnataka High Court writ petition (WP 9275/2022, T-IT) decided 19-11-2025 by S.R. Krishna Kumar J.; income tax reassessment AY 2016-17; Section 148 notice dated 29.03.2021 unanswered due to two-day deadline; assessment order and demand notice dated 29.03.2022 under Sections 147/148 IT Act set aside; matter remanded to DCIT Central Circle-2(3) Bengaluru for fresh consideration from reply stage; liberty to file additional pleadings/documents; certiorari; second opportunity to assessee.

What did the court decide?

Petition allowed; impugned notices/orders at Annexures F1 and F2 set aside and matter remitted to respondent No.1 for fresh reconsideration from the stage of reply to the Section-148 Show Cause Notice dated 29.03.2021, with liberty to the petitioner to submit additional pleadings/documents. ¶51

Sri Kemparaju Krishnappa Vs Deputy Commissioner of Income Tax — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the writ of certiorari should issue quashing the assessment order dated 29.03.2022 (Annexure-F1) and demand notice dated 29.03.2022 (Annexure-F2) for Assessment Year 2016-17 passed by respondent No.1, given the petitioner's non-submission of reply/documents to the Section-148 notice dated 29.03.2021.

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Court's answer

In view of the petitioner's specific assertion that his inability and omission to submit a reply along with documents to the Section-148 notice was due to bonafide reasons, unavoidable circumstances and sufficient cause, the court deemed it just and appropriate to set aside the impugned orders dated 29.03.2022 at Annexure-F1 passed under Section 147 of the Income Tax Act and subsequent notices/orders.

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Ratio / Principle

The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section-148 of the IT Act dated 29.03.2021.

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Key takeaways

Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., which the respondent shall consider and proceed further in accordance with law.ratio¶54

Detailed headnote1 paragraphs

Karnataka HC (Bengaluru), S.R. Krishna Kumar, J. — WP No. 9275 of 2022 (T-IT), decided 19-11-2025. Writ petition under Articles 226 and 227 of the Constitution of India by an assessee seeking quashing of the assessment order dated 29.03.2022 (Annexure-F1) passed under Section 147 of the Income Tax Act and demand notice dated 29.03.2022 (Annexure-F2) for Assessment Year 2016-17 issued by the Deputy Commissioner of Income Tax, Central Circle-2(3), Bengaluru. The petitioner had received a Section 148 notice dated 29.03.2021 but, the Assessing Officer having granted only two days' time and the petitioner being engaged in new business/Government contract work, filed no reply or documents. Holding the petitioner's omission attributable to bonafide reasons, unavoidable circumstances and sufficient cause, the court set aside the impugned orders/notices at Annexures F1 and F2, remitted the matter to respondent No.1 for reconsideration afresh from the stage of reply to the Section-148 Show Cause Notice dated 29.03.2021, and reserved liberty to the petitioner to submit additional pleadings and documents.

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NC: 2025:KHC:47822 WP No. 9275 of 2022

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 19^TH DAY OF NOVEMBER, 2025

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BEFORE

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

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WRIT PETITION NO. 9275 OF 2022 (T-IT)

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BETWEEN:

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SRI KEMPARAJU KRISHNAPPA S/O KRISHNAPPA, AGED ABOUT 48 YEARS, R/AT NO.105, SRI RAMA SAMARTHA, CHEEMASANDRA, VIRGO NAGAR POST, BANGALORE- 560 049.

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…PETITIONER

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(BY SRI. M.V.SESHACHALA, SR.COUNSEL APPEARING FOR SRI. G.S.NAGAHARISH, ADVOCATE)

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AND:

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Digitally signed by SHARADAVANI B Location: High Court of Karnataka

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DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2(3), C.R. BUILDING, QUEENS ROAD, BENGALURU- 560 001.

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PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL CIRCLE,

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C.R.BUILDING, QUEENS ROAD, BENGALURU- 560 001.

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…RESPONDENTS

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

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THIS WP FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE ASSESSMENT ORDER DTD 29.03.2022 ANNEXURE-F1 AND DEMAND NOTICE DTD 29.03.2022 ANNEXURE-F2 FOR THE ASSESSMENT YEAR 2016-17 PASSED BY THE R1 TO PAY WITHIN 30 DAYS.

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NC: 2025:KHC:47822 WP No. 9275 of 2022

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HC-KAR

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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 S.R.KRISHNA KUMAR

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ORAL ORDER

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In this petition, petitioner seeks for the following

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reliefs:-

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“a. Issue a Writ of certiorari to quash the assessment order dated 29.03.2022 bearing No.ITBA/AST/S/147/2021-22/1041976500(1)

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Annexure-F1 and demand Notice dated 29.03.2022 bearing No.ITBA/AST/S/156/202122/1041976711(1) Annexure-F2 for the Assessment year 2016-17 passed by the first respondent to pay within 30 days for the assessment year 2016-2017 passed by the first respondent.

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b. Issue such other Writ or direction as this Hon’ble Court deem fit to grant in the facts and circumstances of the present case.”

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Heard Sri.Sreeshachala, learned Senior Counsel

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appearing for the learned counsel for the petitioner and

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3 - NC: 2025:KHC:47822 WP No. 9275 of 2022

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HC-KAR

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the learned counsel for the respondents and perused the material on record.

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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 submits that notice issued by the respondents under Section 148 of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 29.03.2021 was received by petitioner and could not file reply/ documents to the same since the Assessing Officer had granted only two days time to submit reply and the assessee had undergone irreparable loss in Government contract since he had commenced new business and was not in a position to gather the information sought for and therefore the said notice as well as all the further notices went un-noticed by the Petitioner and hence he could not file reply/ documents and contest the proceedings. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the

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4 - NC: 2025:KHC:47822 WP No. 9275 of 2022

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HC-KAR

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Section-148 notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed to proceed further in accordance with law.

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Per contra, learned counsel for the respondents

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submits that there is no merit in the petition and that the same is liable to be dismissed.

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A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section -148 notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section -148 notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and

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5 - NC: 2025:KHC:47822 WP No. 9275 of 2022

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HC-KAR

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appropriate to set aside the impugned orders dated 29.03.2022 at Annexure-F1 passed under Section 147 of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of

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reply by the petitioner to Section-148 notice and to

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proceed further in accordance with law.

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In the result, pass the following:

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ORDER

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(i) The petition is hereby allowed.

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(i) Impugned notices / orders at Annexures F1 and F2 are hereby set aside.

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(ii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice under Section-148 of the IT Act dated 29.03.2021.

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