Disposed¶41

M/S Shamanur Wines v. the Assessment Unit

Karnataka HC3 Mar 2026WP/3525/2026

Case brief

AI extract

What is this about?

Shamanur Wines v. Assessment Unit, Income Tax Department, National e-Assessment Centre, Delhi; High Court of Karnataka; WP No. 3525 of 2026 (T-IT); Justice S Sunil Dutt Yadav; ex-parte assessment u/s 144 r.w.s 144B; AY 2018-19; non-participation due to death of auditor; setting aside of assessment order subject to 10% payment of Rs.10,98,785/- demand; remittal from stage of reply to show cause notice; contentions kept open.

What did the court decide?

Assessment order dated 23-04-2021 (Annexure-F) and consequential proceedings set aside, subject to the petitioner paying 10% of the tax demand within four weeks; proceedings reopened and remitted from the stage of reply to the show cause notice; petitioner to co-operate; all contentions kept open. ¶41

M/S Shamanur Wines Vs the Assessment Unit — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the ex-parte assessment order dated 23.04.2021 for Assessment Year 2018-19, passed without the benefit of any reply to the show cause notice owing to the death of the petitioner's auditor, should be set aside and an opportunity given to the petitioner to make out his reply.

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Court's answer

The assessment order was admittedly passed without the benefit of any reply, and the petitioner made out the cause for his non-participation as the death of his auditor.

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Ratio / Principle

Taking note of the petitioner's stand, it was appropriate to remit the matter back by reopening the proceedings so as to enable the petitioner to make out his reply.

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Key takeaways

The assessment order at Annexure-F and the consequential proceedings were set aside, subject to the petitioner paying 10% of the demand of tax within a period of four weeks.ratio¶33
The petitioner is to co-operate in the reopened proceedings.ratio¶38
The matter stands remitted from the stage of reply to the show cause notice.ratio

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav, J.; WP No. 3525 of 2026 (T-IT), decided 03-03-2026): Writ petition under Articles 226 and 227 of the Constitution challenging an ex-parte assessment order dated 23-04-2021 made u/s 144 r.w.s 144B (Annexure-F) for Assessment Year 2018-19. The order was passed without the benefit of any reply to the show cause notice or subsequent communications, the petitioner's non-participation being attributable to the death of his auditor (death certificate enclosed). Holding the cause for non-participation made out, the Court set aside the assessment order and consequential proceedings subject to the petitioner paying 10% of the tax demand of Rs.10,98,785/- within four weeks, remitted the matter from the stage of reply to the show cause notice with a direction to co-operate, and disposed of the writ petition keeping all contentions open.

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1 - NC: 2026:KHC:12962 WP No. 3525 of 2026

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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 3^RD DAY OF MARCH, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 3525 OF 2026 (T-IT)

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BETWEEN:

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M/S SHAMANUR WINES, REPRESENTED BY ITS PARTNER SRI. J. ESHWARSINGH, AGED ABOUT 54 YEARS, SHAMANUR ROAD, DAVANAGERE-577 004.

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& PETITIONER

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(BY SRI. CHANDRASHEKAR, ADVOCATE AND SRI. KASHINATH KALMATH, ADVOCATE)

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AND:

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Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

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THE ASSESSMENT UNIT INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NATIONAL E.ASSESSMENT CENTRE, DELHI.

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& RESPONDENT

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(BY SRI. DILIP, ADVOCATE)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI QUASHING THE ORDER OF EX-PARTY ASSESSMENT DATED 23-04-2021 MADE U/S 144 R.W.S 144B (ANNEXURE-F) [ITBA/AST/S/144/2021-22/10 32625981(1)] FOR THE ASSESSMENT YEAR 2018-19 BY THE RESPONDENT AND ETC.,

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NC: 2026:KHC:12962 WP No. 3525 of 2026

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HC-KAR

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THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

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ORAL ORDER

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The petitioner has called in question the assessment

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order dated 23.04.2021 for the Assessment Year 2018-19 and contends that the said order passed is an ex-parte, without the benefit of any reply to the show cause notice and the subsequent communications. Such nonparticipation is stated to be due to the death of the petitioner's auditor. Accordingly, the petitioner seeks for setting aside of the order and providing an opportunity to take his stand.

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The petitioner has enclosed the death certificate

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of his auditor and submits that on merits, he would be in a position to make out a reply to the points raised by the authorities.

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Sri. Dilip, learned counsel appearing for the respondent-Revenue submits that the order is of the year

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NC: 2026:KHC:12962 WP No. 3525 of 2026

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HC-KAR

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2021 and that there has been an inordinate delay. It is further submitted that the petitioner's request may be considered if he were to make some deposit to demonstrate his bona fides.

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Admittedly, the order is passed without the

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benefit of any reply. The petitioner has made out the cause for non-participation as being the death of his auditor. It is noticed that the demand of tax component amounts to Rs.10,98,785/-. Taking note of the stand of the petitioner, it will be appropriate to remit the matter back by reopening the proceedings in order to enable the petitioner to make out his reply.

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The petitioner to be put on terms. Accordingly, the assessment order at Annexure-F as well as the consequential proceedings are set aside, subject to the petitioner paying 10% of the demand of tax within a period of four weeks. It is needless to state that the tax

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NC: 2026:KHC:12962 WP No. 3525 of 2026

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HC-KAR

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paid will be subject to the orders to be passed in the assessment proceedings.

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