Sri Vignesh Shishir Vs the Income Tax Officer — Writ and Judicial Review | Karnataka HC (2026)

Sri Vignesh Shishir Vs the Income Tax Officer — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Order at Annexure-O set aside; petitioner permitted to file a review petition before the concerned Principal CIT/CIT within two weeks, to be decided in terms of the Office Memorandum dated 29.02.2016; Revenue restrained from taking precipitative steps until disposal of the review petition; all other contentions kept open.

Issue for consideration

Whether the stay of recovery granted by the Assessing Officer subject to deposit of 20% of the outstanding demand (Annexure-O) should be set aside, given the petitioner's claim of severe crop damage and landslides causing the default.

Court's answer

Grant of stay of recovery is governed by Office Memorandum dated 29.02.2016 read with Office Memorandum dated 31.07.2017.

Ratio / Principle

Where stay of demand is granted only on payment of 15% (subsequently 20%), the assessee may approach the jurisdictional Principal CIT/CIT for review of the Assessing Officer's decision; accordingly, the petitioner is relegated to that review mechanism instead of the writ remedy.

Key takeaways

If the review petition is filed within two weeks, the concerned Principal CIT/CIT is to take an appropriate decision in terms of the Office Memorandum dated 29.02.2016.ratio¶32
Until the review petition before the Principal CIT/CIT is disposed of, Revenue is not to take any precipitative steps.ratio¶36
The order at Annexure-O (stay subject to 20% deposit) is set aside.ratio

Detailed headnote1 paragraphs

Karnataka High Court (S Sunil Dutt Yadav, J.), 05.01.2026 — Assessee's writ petition under Articles 226 and 227 of the Constitution challenging orders dated 30.12.2018 (Annexure-D) and, principally, the Assessing Officer's conditional stay order (Annexure-O) requiring deposit of 20% of the outstanding demand, the petitioner having attributed his default to excessive rain damaging his coffee estate and landslides (June-August 2019). Noting that grant of stay of recovery is governed by Office Memorandum dated 29.02.2016 read with Office Memorandum dated 31.07.2017 - under which an assessee whose stay is conditioned on 15% (later 20%) payment may seek review of the Assessing Officer's decision by the jurisdictional Principal CIT/CIT - the Court set aside the Annexure-O order, relegated the petitioner to file a review petition before the concerned Principal CIT/CIT within two weeks, directed that it be decided in terms of the 2016 Office Memorandum, restrained Revenue from taking precipitative steps until disposal of the review petition, and kept all contentions open.

NC: 2026:KHC:244 WP No. 8703 of 2019

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 5^TH DAY OF JANUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 8703 OF 2019 (T-IT)

BETWEEN:

SRI VIGNESH SHISHIR S/O G ANITHA, AGED ABOUT 29 YEARS NO.209, 1^ST BLOCK, 2^ND CROSS, RAJAJINAGAR, BENGALURU-560 010

… PETITIONER

(BY SRI. SAGAR B B., ADVOCATE)

AND:

Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA

THE INCOME TAX OFFICER WARD NO.2(2)(2) INCOME TAX DEPARTMENT, B.M.T.C. COMPLEX, KORAMANGALA, BENGALURU-560 096

THE INCOME TAX OFFICER WARD NO.4(1)(4) INCOME TAX DEPARTMENT, B.M.T.C. COMPLEX, KORAMANGALA, BENGALURU-560 096

… RESPONDENTS

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

2 - NC: 2026:KHC:244 WP No. 8703 of 2019

HC-KAR

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDERS DATED 30.12.2018 BEARING NO.ITBA/AST/S/143(3)/2018-19/1014662120(1) PASSED BY THE R-2 VIDE ANNEXURE-D AND ETC.

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

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

The present petition has been filed by the assessee seeking for setting aside of the order dated 30.12.2018 at Annexure-D and has also challenged other proceedings. However, the main grievance of the petitioner appears to be non-grant of stay against the assessment order.

At the time of arguing the matter, learned counsel for petitioner submits that he was essentially aggrieved under the order at Annexure-O, whereby the Assessing Officer has granted stay subject to deposit of 20% of the outstanding demand. Petitioner submits that there was severe damage and loss to the coffee crops in the Estate due to excessive rain during the months of June, July and August, 2019 and there have been land slides as a result of which there was default

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NC: 2026:KHC:244 WP No. 8703 of 2019

HC-KAR

which petitioner submits ought to have been taken note of while considering the request to grant stay. It is noticed that insofar as grant of stay of recovery, Office Memorandum dated 29.02.2016 r/w Office Memorandum dated 31.07.2017 is to be taken note of.

In terms of Office Memorandum [F.No.404/72/93ITCC] dated 29.02.2016, as per Section 4(C), where the assessee is aggrieved, when stay of demand is granted only on payment of 15% (subsequently amended to 20% in terms of Office Memorandum dated 31.07.2017) assessee could approach the jurisdictional concerned Principal CIT/ CIT for review of the decision of the Assessing Officer.

In light of the said Office Memorandum, it would be appropriate to relegate the petitioner to avail of review of the decision of the Assessing Officer by approaching the concerned Principal CIT/ CIT.

If such review petition is filed within a period of two weeks from today, the concerned Principal CIT/ CIT to take appropriate decision in terms of the said Office Memorandum dated 29.02.2016.

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NC: 2026:KHC:244 WP No. 8703 of 2019

HC-KAR

Needless to state, if review petition is filed before the concerned Principal CIT/ CIT and till such review petition is disposed of, Revenue not to take any precipitative steps.

Accordingly, the order at Annexure-O is set aside.

Petitioner to take appropriate proceedings in terms of the observations made above. All contentions are kept open.

Sd/(S SUNIL DUTT YADAV) JUDGE

NP