M/S Satyadeva Builders Vs Deputy Commissioner of Income Tax

ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, REP. BY ADDL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, INCOME TAX DEPARTMENT, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003

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…RESPONDENTS

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

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE DATED 28.03.2024 ISSUED UNDER SECTION 148A(B) OF THE ACT FOR AY 2020-21 BY RESPONDENT NO. 1 BEARING DIN ITBA/AST/F/148A(SCN)/2023-24/1063519779(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE-A; QUASH THE ORDER DATED 02.05.2024 PASSED UNDER SECTION 148A(D) OF THE ACT FOR THE AY 2020-21 BY RESPONDENT NO. 1 BEARING DIN HEREIN

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3 - NC: 2026:KHC:25896 WP No. 10582 of 2026

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HC-KAR

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ITBA/AST/F/148A/2024-25/1064567958(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE-A1; QUASH THE NOTICE DATED 02.05.2024 ISSUED UNDER SECTION 148 OF THE ACT FOR THE AY 2020-21 BY RESPONDENT NO. I BEARING DIN ITBA/AST/S/148.1/2024-25/1064568290(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE-A2; QUASH THE ASSESSMENT ORDER DATED 25.02.2026 PASSED UNDER SECTION 147 R.W.S. 144B OF THE ACT FOR THE AY 2020-21 BY RESPONDENT NO. 3 BEARING DIN ITBA/AST/S/147/2025-26/1086492382(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE - A3; QUASH THE PENALTY SHOW CAUSE NOTICE DATED 23.02.2026 ISSUED UNDER SECTION 272A(1)(D) OF THE ACT FOR THE AY 2020-21 BY RESPONDENT NO. 3 BEARING DIN ITBA/PNL/S/272A(1) (D)/202526/1086381328(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE - A4; QUASH THE PENALTY SHOW CAUSE NOTICE DATED 25.02.2026 ISSUED UNDER SECTION 270A OF THE ACT FOR THE AY 2020-21 BY RESPONDENT NO. 3 BEARING DIN ITBA/PNL/S/270A/2025-26/1086492392(1), HEREIN ENCLOSED AND MARKED AS ANNEXURE - A5.

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

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4 -

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NC: 2026:KHC:25896 WP No. 10582 of 2026

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HC-KAR

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CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

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ORAL ORDER

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The petitioner, a Partnership Firm engaged in the business of construction, has filed this petition calling in question the Show Cause Notice dated 02.05.2024 under Section 148A(b) of the Income Tax Act, 1961 [for short, 'the IT Act'], the order under Section 148A(d), the Assessment Order dated 25.02.2026 under Section 147 read with Section 144B of the IT Act and the subsequent penalty Show Cause Notices. The proceedings are relevant to the assessment year 2020-21.

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2. Mr. Hemant Venkatray Pai, the learned counsel for the petitioner, submits that the petitioner's grievance insofar as the present petition could be redressed if this Court interferes with the Assessment Order dated 25.02.2026 and the penalty Show Cause Notices with liberty to file a detailed

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5 - NC: 2026:KHC:25896 WP No. 10582 of 2026

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HC-KAR

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response to the Show Cause Notice dated 02.05.2024 leaving open all questions to be answered afresh by the Assessing Officer. In elaboration, the learned counsel submits that [i] the proceedings under Section 148A of the IT Act only referred to sale of one unit but the Show Cause Notice dated 03.02.2026 has referred, for the first time, to multiple units sold by the petitioner, and [ii] if the Show Cause Notice is dated 03.02.2026, the impugned order is dated 25.02.2026 allowing the petitioner only two weeks to collate all payments.

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3. Mr. Hemant Venkatray Pai argues for a

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reasonable opportunity before the petitioner is fastened with liability. Mr. E. I Sanmathi, the learned Senior Standing counsel for the respondents, is heard for final disposal of the petition in the light of these circumstances. The petitioner is allowed time between the Show Cause Notice dated 03.02.2026 and the impugned Assessment Order dated

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6 - NC: 2026:KHC:25896 WP No. 10582 of 2026

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HC-KAR

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25.02.2026 to respond to a deficiency in filing returns

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on the sale of 119 apartments but without the advantage of notice of the proceedings based on this in the proceedings under Section 148A of the IT Act.

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4. This Court finds that, in these

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circumstances, the petitioner's case for a limited interference with the Assessment Order and the consequent penalty notices with opportunity to file response to the Show Cause Notices will be just and reasonable, especially when this Court can observe that all questions otherwise are left open for decision on restoration but based on the response that the petitioner can file within the time allowed by this Court. In the light of the afore, the following:

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ORDER

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The petition is allowed-in-part

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quashing the impugned Assessment Order dated 25.02.2026 and the subsequent

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penalty Show Cause Notices [ Annexures -

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7 - NC: 2026:KHC:25896 WP No. 10582 of 2026

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HC-KAR

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A3, A4, A5 ] with liberty to the petitioner to file a detailed response within four [4] weeks from today observing that the Assessing Officer shall conclude all proceedings upon due consideration of the response that is offered.

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SD/(B M SHYAM PRASAD) JUDGE

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RB

M/S Satyadeva Builders v. Deputy Commissioner of Income Tax

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M/S Satyadeva Builders v. Deputy Commissioner of Income Tax

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