Sidhartha Educational and Cultural Development Association Vs… — Income Tax | Karnataka HC (2026)

Sidhartha Educational and Cultural Development Association Vs… — Income Tax | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Assessment order dated 21.09.2021 (Annexure-T) set aside; matter remitted to post notice stage under Section 148 of the Income Tax Act with all contentions open; attachment order dated 08.12.2025 (Annexure-V) to be rescinded by the department forthwith; consequential penalty orders (Annexures-W and X) set aside; writ petition disposed of.

Issue for consideration

Whether the assessment order dated 21.09.2021 for Assessment Year 2015-16 (Annexure-T), which was not communicated to the petitioner's current registered email ID nor by mobile alert, ought to be set aside notwithstanding its upload on the portal. +1 more

Court's answer

Given that departmental communications were sent to an email ID other than the petitioner's current registered email ID and there was a legitimate expectation that the orders would be communicated to the registered email ID, which was not done, it was appropriate to set aside the assessment order at Annexure-T.

Ratio / Principle

The matter stands remitted to the post notice stage under Section 148 of the Income Tax Act, with all contentions of the parties kept open.

Key takeaways

As a consequence, the attachment order at Annexure-V is to be rescinded by the department forthwith, and the consequential penalty orders at Annexures-W and X stand set aside.ratio¶41

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav J.), W.P. No. 6442 of 2026 (T-IT), decided 04.03.2026: An educational association challenged an attachment order dated 08.12.2025 (Annexure-V) on its bank account, the ex parte assessment order dated 21.09.2021 for AY 2015-16 (Annexure-T), and consequential penalty orders (Annexures-W and X). The Court noted, on facts not controverted, that all departmental communications were sent to an email ID other than the petitioner's current registered email ID, and that the assessment order was neither emailed to the registered ID nor sent by mobile alert, having merely been uploaded on the portal. Holding there was a legitimate expectation that orders would be communicated to the registered email ID, the Court set aside Annexure-T, remitted the matter to the post notice stage under Section 148 of the Income Tax Act with all contentions kept open, directed forthwith rescission of the attachment (Annexure-V), and set aside the penalty orders (Annexures-W and X). Petition disposed of under Articles 226 and 227 of the Constitution of India.

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4^TH DAY OF MARCH, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 6442 OF 2026 (T-IT)

BETWEEN:

SIDHARTHA EDUCATIONAL AND CULTURAL DEVELOPMENT ASSOCIATION, NO.17, 26TH CROSS, 25A MAIN, BANGALORE-HSSR LAYOUT SECTOR-II, BANGALORE - 560 102. REP. BY ITS PRESIDENT SMT. C.P. DHANALAKSHMI REGISTERED UNDER KARNATAKA SOCIETIES REGISTRATION ACT, 1960.

…PETITIONER

Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA

(BY SRI. M.V. SESHACHALA, SENIOR ADVOCATE FOR SRI. NAGHARISH G.S, ADVOCATE)

AND:

INCOME TAX OFFICER (EXEMPTIONS), WARD-3, UNITY BUILDING ANNEXE, MISSION ROAD, BANGALORE - 560 027.

COMMISSIONER OF INCOME TAX EXEMPTIONS,

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

ASSESSMENT UNIT, FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI - 110 001 REP. BY ASSESSING OFFICER.

NATIONAL FACELESS ASSESSMENT CENTRE, NO.412-413, IST FLOOR, OPP. METRO PILLAR NO. 793 DWARKA MOR, NEW DELHI - 110 059. REP. BY ASSESSING OFFICER.

…RESPONDENTS

(BY SRI. ARAVIND V CHAVAN, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A. QUASH THE ATTACHMENT ORDER DATED 08.12.2025 BEARING NO.ITBA/COM/F/27/2025-26/1083430641(1) ANNEXUREV ISSUED TO THE INDIAN BANK AND ETC.

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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HC-KAR

ORAL ORDER

The petitioner has sought for setting aside the order of attachment at Annexure-V relating to the bank account of the petitioner. The petitioner has also sought for setting aside the assessment order dated 21.09.2021 at Annexure-T, as well as the penalty orders at Annexure-W and X. Further, the petitioner has sought for treating the original return as a response to the notice issued under Section 148 of the Income Tax Act.

Learned Senior Counsel appearing on behalf of the petitioner submits that the assessment order as regards the Assessment Year 2015-16 was passed on 21.09.2021. It is submitted that the registered email ID of the petitioner remained the same from the Assessment Year 2016-17 till 2020-21 and thereafter, from 2021 onwards till 2024-25, the registered email Id was is found in the table at paragraph 15 of the petition.

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HC-KAR

It is further submitted that the assessment

order passed was not communicated to the petitioner either through the registered email Id as found in the table at paragraph 15, or by way of mobile alert. It is submitted that even otherwise the lapse was due to bona fide reasons and that such lapse be condoned and appropriate orders be passed.

It is submitted that all communications by the department appears to have been sent to an email Id other than the current registered email Id. Such factual aspect is not controverted. Learned counsel for the revenue submits that the details of the orders were uploaded on the portal and therefore, the petitioner ought to have been diligent.

However, taking note of the facts as noticed and also considering that there was a legitimate expectation that the orders would be communicated to the

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HC-KAR

registered email ID, which has not been done, it will be appropriate to set aside the order at Annexure-T.

The matter is remitted to the post notice stage under Section 148 of the Income Tax Act. All contentions are kept open.

Consequently, the order of attachment at Annexure-V is required to be rescinded by the department forthwith. Further, the consequential orders at AnnexuresW and X are also set aside.

Accordingly, the writ petitioner is disposed of .

Sd/(S SUNIL DUTT YADAV) JUDGE

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