Vikas Souharda Co. Operative Bank Ltd. Vs Commissioner of… — Income Tax | Karnataka HC (2026)

Vikas Souharda Co. Operative Bank Ltd. Vs Commissioner of… — Income Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Obliteration of the assessment order dated 08.04.2021 (DIN No.ITBA/AST/S/143(3)/2021-22/1032294387(1)) passed under Section 143(3) of the Income Tax Act, 1961 as issued outside the scope of Section 151A; quashing of all further proceedings initiated thereto and challenged in the petition; liberty reserved to the Revenue to revive the petition depending on the Apex Court's finding in the matter pending before it; other contentions of both parties left open.

Issue for consideration

Whether respondent No.1 (CIT Appeals, National Faceless Appeal Centre) should be directed to dispose of the petitioner's appeal dt. 04-10-2021 (Annexure-C) within three months and, until such disposal, respondents No.2 and No.3 be restrained from making any income-tax demand for assessment year 2018-19 from the petitioner. +1 more

Ratio / Principle

Since the grounds projected in this petition are identical to those considered in W.P.No.28182/2024 and connected matters (disposed 28.08.2025), the reasons rendered therein become applicable and the petition deserves to be disposed of on the same lines.

Key takeaways

The Assessment Order dated 08.04.2021 bearing DIN No.ITBA/AST/S/143(3)/202122/1032294387(1), passed by respondent No.3-Revenue under Section 143(3) of the Income Tax Act, 1961, having been issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act, stands obliterated.ratio¶¶36
All further proceedings initiated pursuant to the assessment order and challenged in this petition stand quashed.ratio¶¶36
Liberty is reserved to the respondents-revenue to revive the petition in the event the Apex Court would hold in favour of the Revenue in the matter pending before it.

Detailed headnote1 paragraphs

High Court of Karnataka, Dharwad Bench [M. Nagaprasanna J.], 10-12-2025 — WP No. 109472 of 2025 (T-IT): Vikas Souharda Co-operative Bank Ltd. (Toranagallu Branch) v. CIT Appeals (NFAC), DCIT Circle-I Ballary & AO. The petitioner-bank sought (i) mandamus directing respondent No.1 to dispose of its appeal dt. 04-10-2021 (Annexure-C) against assessment for AY 2018-19 within three months, with interim restraint on any tax demand by respondents No.2 and 3, or (ii) alternatively, certiorari quashing the assessment order dt. 08-04-2021 (DIN No.ITBA/AST/S/143(3)/2021-22/1032294387(1)) passed under Section 143(3) of the Income Tax Act, 1961. Finding the grounds identical to those in W.P.No.28182/2024 and connected matters (disposed 28.08.2025), the Court disposed the petition on the same lines: the assessment order, issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act, stood obliterated and all further proceedings challenged stood quashed; liberty was reserved to the Revenue to revive the petition if the Apex Court holds in the Revenue's favour in the matter pending before it; remaining contentions of both sides were left open. Petition allowed.

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NC: 2025:KHC-D:18075 WP No. 109472 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 10^TH DAY OF DECEMBER 2025 BEFORE

THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 109472 OF 2025 (T-IT)

BETWEEN:

VIKAS SOUHARDA CO-OPERATIVE BANK LTD. (A SOCIETY REGISTERED UNDER KCS ACT, 1959) TORANAGALLU BRANCH, NEAR VIJAYALAXMI THEATRE, BALLARI HOSAPETE MAIN ROAD, TORANGALLU 583123, BY ITS MANAGING DIRECTOR

…PETITIONER

(BY SRI. NAVEEN CHATRAD, ADVOCATE)

AND:

COMMISSIONER OF INCOME TAX APPEALS NATIONAL FACELESS APPEAL CENTRE, ROOM NO. 356, C. R. BUILDING, I. P. ESTATE, NEW DELHI-110002.

Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-I AAYAKAR BHAVAN, STAFF ROAD FORT, BALLARY 583102.

ASSESSING OFFICER

MINISTRY OF FINANCE INCOME TAX DEPARTMENT, NATIONAL E-ASSESSMENT CENTRE, DELHI-110002.

…RESPONDENTS

(BY SRI. M.THIRUMALESH AND SMT. ROOPA, ADVOCATES)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF MANDAMUS BY DIRECTING THE 1ST RESPONDENT TO DISPOSE OF THE APPEAL DT. 04-10-2021 MARKED AS ANNEXURE - C BEARING ACKNOWLEDGEMENT NO.342068241231018 FILED BY THE PETITIONER WITHIN A PERIOD OF THREE MONTHS AND TILL THE DISPOSAL OF THE SAID APPEAL, RESPONDENT NO.2 AND 3 BE

2 - NC: 2025:KHC-D:18075 WP No. 109472 of 2025

HC-KAR

DIRECTED NOT TO MAKE ANY DEMAND OF INCOME TAX FOR THE ASSESSMENT YEAR 2018-19 FROM THE PETITIONER.

OR IN THE ALTERNATIVE

QUASH THE ASSESSMENT ORDER DT. 08-04-2021 BEARING DIN NO. ITBA/AST/S/143(3)2021-22/1032294387(1) PASSED BY THE RESPONDENT NO.3 MARKED AS ANNEXURE-A BY ISSUING A WRIT IN THE NATURE OF CERTIORARY AND ETC.,

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

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

The petitioner - Assessee is before this Court seeking

disposal of the appeal at Annexure-C or in the alternative to quash the Assessment Order dated 08.04.2021 bearing

DIN No.ITBA/AST/S/143(3)/2021-22/1032294387(1) passed by respondent No.3-Revenue under Section 143(3) of the Income Tax Act, 1961.

Heard Sri. Naveen Chatrad learned counsel for the petitioner and Sri M.Thirumalesh & Smt.Roopa, learned counsels for the respondents.

3 - NC: 2025:KHC-D:18075 WP No. 109472 of 2025

HC-KAR

The grounds projected in the subject petition in support of the prayer quoted supra are identical to the ones considered by this Court in W.P.No.28182/2024 and connected matters, disposed on 28.08.2025.

In the light of the issue being similar and the reasons rendered therein becomes applicable to the case at hand, the petition deserves to be disposed on the same lines. Therefore, I pass the following:

ORDER

(i) The Assessment Order dated 08.04.2021 bearing DIN No.ITBA/AST/S/143(3)/202122/1032294387(1) passed by respondent No.3-Revenue under Section 143(3) of the Income Tax Act, 1961, issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in this petition would stand quashed.

(ii) Liberty is reserved to the respondents - revenue to revive the petition in the event, the

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NC: 2025:KHC-D:18075 WP No. 109472 of 2025

HC-KAR

Apex Court would hold in favour of the Revenue in the matter pending before it.

(iii) With the aforesaid liberty and to the aforesaid extent, the petition is allowed.

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

Sd/(M.NAGAPRASANNA)

JUDGE

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