Dnr Properties Vs the Assistant Commissioner of Income Tax — Income Tax | Karnataka HC (2026)

Dnr Properties Vs the Assistant Commissioner of Income Tax — Income Tax | Karnataka HC (2026)

NC: 2026:KHC:20311 WP No. 7355 of 2026

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 15^TH DAY OF APRIL, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 7355 OF 2026 (T-IT)

BETWEEN:

DNR PROPERTIES, NO.18, KAY KAY TOWERS, 17^TH CROSS, 9^TH MAIN, 7^TH SECTOR, HSR LAYOUT, BENGALURU - 560102, REPRESENTED BY ITS PARTNER, SRI. N SREENADHA REDDY, SON OF SRI. JANARDHANA REDDY, AGED ABOUT 48 YEARS.

…PETITIONER

(BY SRI. MADHUSUDHAN U. A., ADVOCATE)

AND:

Digitally signed by MAMATHA R Location: HIGH COURT OF KARNATAKA

THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3(1)(1), BENGALURU, BMTC BUILDING, 80 FEET ROAD, 6^TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560095.

THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, MINISTRY OF FINANCE, ROOM NO.401, 2^ND FLOOR, E-RAMP, JAWARLAL NEHRU STADIUM, DELHI-110003.

…RESPONDENTS

(BY SRI. THIRUMALESH M., ADVOCATE)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ASSESSMENT ORDER DATED 15.03.2023 PASSED UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2015-16 BY THE RESPONDENT NO.2 BEARING DIN NO. ITBA/AST/S/147/202223/1050816159(1) HEREIN MARKED AS ANNEXURE-A1 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

ORAL ORDER

Learned counsel, Sri. Thirumalesh M., accepts notice for the respondents.

It is the case of the petitioner that the proceedings of the revenue have culminated in passing of assessment order which is a culmination of exparte proceedings. The petitioner has challenged the validity of such assessment order and consequential proceedings.

It is the case of the petitioner that all communications were addressed to the former employees of the petitioner and accordingly, there was no notice

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served on the petitioner. To demonstrate such a situation,

email IDs of the recipients at Annexures-C and E are pointed out. It is submitted that the petitioner's email ID

as is available in the portal is

'[email protected]'.

Perused the order under Section 148A(d) of the Income Tax Act, 1961, (for short, 'the Act') at AnnexureB2. The authority has noticed that the petitioner had not filed return for a relevant period of time and source of income for purchase of immoveable property remained unexplained. It is further observed that the income from sale of immoveable property had also not been declared.

It is noticed that the assessee has not furnished any reply to the show-cause notice. Even as regards notice under Section 148, the petitioner has not filed any return of income. Finally, the authority has passed exparte order of assessment at Annexure-A1. Even in such proceedings, the authority has proceeded on the basis of material

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available with it, as the petitioner has not made out any reply by filing return of income for the year in consideration in response to Section 148 notice.

Taking note of the factual aspect that requires a reply by the petitioner on merits, it would be appropriate that the matter be remitted to the stage of reply to notice issued under Section 148A(b) at Annexure-B1. Petitioner

to appear before respondent No.1 without further notice on 18.05.2026.

In light of the above discussion, Annexures-A1

to A12, B2 and B3 are set aside. All contentions are kept open.

Accordingly, petition is disposed of .

Sd/(S SUNIL DUTT YADAV) JUDGE

MCR