Sri Konanur Basavanna Gurulingaswamy vs Income Tax Officer on 7 April, 2026

Author: S.Sunil Dutt Yadav

Bench: S.Sunil Dutt Yadav

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                                                            NC: 2026:KHC:18754
                                                        WP No. 22515 of 2024


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                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                            DATED THIS THE 7TH DAY OF APRIL, 2026

                                               BEFORE
                         THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
                            WRIT PETITION NO. 22515 OF 2024 (T-IT)

                   BETWEEN:

                         SRI. KONANUR BASAVANNA GURULINGASWAMY,
                         NO. 2085, 1ST CROSS,
                         MADHAVACHAR ROAD, KR MOHALLA,
                         MYSORE-570004,
                         PAN : AQSPK3209P,
                         REPRENTED BY HIS POA HOLDER
                         SMT. DR. MANJULA A PATIL,
                         NO. 2085, 1ST CROSS,
                         MADHAVACHAR ROAD, KR MOHALLA,
                         MYSORE-570004.
                                                            ...PETITIONER
                   (BY SRI. HEMANT PAI, ADVOCATE FOR
                       SRI. RAVI SHANKAR S. V., ADVOCATE)
Digitally signed
by MAMATHA
R                  AND:
Location: HIGH
COURT OF           1.    INCOME TAX OFFICER,
KARNATAKA
                         WARD INTL. TAXATION 1(2),
                         BANGALORE-560095.

                   2.    INCOME TAX OFFICER,
                         WARD 1(1),
                         MYSORE-570008.

                   3.    NATIONAL FACELESS ASSESSMENT CENTRE,
                         ADDITIONAL /JOINT/DEPUTY/ASSISTANT
                           -2-
                                       NC: 2026:KHC:18754
                                    WP No. 22515 of 2024


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     COMMISSIONER OF INCOME TAX/
     INCOME TAX OFFICER,
     INCOME TAX DEPARTMENT,
     MINISTRY OF FINANCE,
     ROOM NO.401, 2ND FLOOR, E-RAMP,
     JAWAHARLAL NEHRU STADIUM,
     DELHI - 110003.

4.   THE PRINCIPAL CHIEF COMMISSIONER OF INCOME
     TAX,
     THE OFFICE OF THE PRINCIPAL CHIEF
     COMMISSIONER OF INCOME TAX,
     CENTRAL REVENUE BUILDING,
     QUEENS ROAD, BANGALORE-560001.

5.   THE PRINCIPAL CHIEF COMMISSIONER OF INCOME
     TAX (IT),
     ROOM NO. 317, 3RD FLOOR, E-2 BLOCK,
     DR. S.P. MUKHERJEE CIVIC CENTRE,
     MINTO ROAD, NEW DELHI-110002.
                                         ...RESPONDENTS
(BY SRI. E.I. SANMATHI, ADVOCATE)

     THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
NOTICE UNDER SECTION 148A(B) OF THE ACT, DATED
30/03/2022    BEARING    NO.ITBA/AST/F/148A(SCN)/2021-
22/1042182421(1), ISSUED BY THE RESPONDENT NO.2 FOR
THE ASSESSMENT YEAR 2015-16 HEREIN MARKED AS
ANNEXURE - A AND ETC.,

    THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
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                                         NC: 2026:KHC:18754
                                       WP No. 22515 of 2024


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                      ORAL ORDER

The petitioner has sought for setting aside of the

proceedings under Section 148 of the Income Tax Act,

1961 (for short 'the Act') which has culminated in order

passed under Section 147 read with Section 144 at

Annexure-A3 and penalty proceedings.

2. It is the case of the petitioner that the

proceedings under Section 148 of the Act were sought to

be initiated as regards the assessment year 2015-16. It is

submitted that such proceedings are time barred. It is

submitted that the time limit prescribed for initiating

proceedings will have to be read in terms with the

observation made in the case of Union of India v. Rajiv

Bansal reported in 2024 INSC 754. Attention is drawn to

para-19(e) and 19(f) of the said decision, which are

extracted as below:

"e. The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of

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TOLA. Section 3 of TOLA applies to the entire Income-tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013- 14, 2014-15, 2015-16, 2016-17, and 2017-18 will be within the period of limitation as explained in the tabulation below:

Assessment Within 3 Expiry of Within Six Expiry of year years Limitation Years Limitation read with read with TOLA for TOLA for (2) (4) (1) (2) (3) (4) (5) 2013-2014 31-3-2017 TOLA not 31-3-2020 30-6-2021 applicable 2014-2015 31-3-2018 TOLA not 31-3-2021 30-6-2021 applicable 2015-2016 31-3-2019 TOLA not 31-3-2022 TOLA not applicable applicable 2016-17 31-3-2020 30-6-2021 31-3-2023 TOLA not applicable 2017-2018 31-3-2021 30-6-2021 31-3-2024 TOLA not applicable

f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA."

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3. It is submitted that in light of the observations

made and in light of the concession of the revenue to the

effect that for the assessment year 2015-16, all notices

issued on or after 1st April 2021 will have to be dropped as

they will not fall for completion during the prescribed

period under TOLA and the proceedings are to be set

aside.

4. The identical question was a subject matter of

consideration before the Division Bench in

W.A.No.612/2025 in the case of Income Tax Officer and

others v. Venkatala Iyyappa Rajanna. The Division

Bench considering the identical question regarding the

time limit for notices of the assessment year 2015-16,

after referring to the observations made in Rajiv Bansal's

case as extracted above, has observed that the concession

made before the Apex Court has been taken note of even

in subsequent proceedings including by the Supreme Court

in the case of Deepak Steel and Power Limited v.

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CBDT in Civil Appeal No.5177/2025 decided on

02.04.2025.

5. The Division Bench relying on the observations

made at para-4 to 6 in the aforesaid order as well as

observations made in ITO v. R.K. Build Creations (P)

Ltd., in Special Leave Petition (Civil) Diary

No.59625/2024, dismissed the appeal affirming the time

barring of the notices. The observations of the Division

Bench at para-9 and 10 reads as follows:

"9. It is also relevant to note that in the subsequent decision in Deepak Steel and Power Limited V. CBDT1, the attention of the Supreme Court was also drawn to the concession made by the Revenue in Rajeev Bansal (Supra). The said appeal emanated from the orders passed by the Hon'ble High Court of Orissa at Cuttack, declining to entertain a batch of petitions. The Supreme Court noted the concession made on behalf of the Revenue and accordingly, allowed the writ petitions, which were filed before the High Court of Orissa. The relevant extract of the said decision of the Supreme Court is set out below:

Civil Appeal No. 5177/2025 decided on 02.04.2025

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"4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2024 SCC Online SC 2693, more particularly, paragraph 19(f) which reads thus:-

"19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020."

5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of certain Provisions) Act, 2020. Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.

6. In view of the aforesaid, in such circumstances referred to above the original writ petition Nos. 2446 of 2023, 2543 of 2023 and 2544 of 2023 respectively filed before the High Court of Orissa at cuttack stands allowed."

10. Similarly, in ITO V. R.K. Build Creations (P) Ltd.2, the Supreme Court dismissed the Special

Special Leave Petition (Civil) Diary No.59625/2024

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Leave Petition arising out of a decision rendered by the Hon'ble Rajasthan High Court in DBC WP No.14414/2022. It would be equally relevant to refer to the said order passed by the Supreme Court, which is reproduced below:

"Delay condoned.

Having regard to the concession made by the petitioner-Department in the case of Union of India v. Rajeev Bansal, Civil Appeal No. 8629 of 2024 on 03.10.2024 (2024 SCC ONLINE

754), this Special Leave Petition would not survive for further consideration.

Hence, the Special Leave Petition is dismissed.

Pending application(s), if any, shall stand disposed of."

6. In the present case, it is not in dispute that the

proceedings under Section 148A(b) of the Act itself were

initiated as per the notice dated 30.03.2022. Noticing the

notice issued is beyond 1st of April 2021, and taking note

of the observations made by the Division Bench as well,

the impugned proceedings are liable to be set aside on the

sole ground that the notice under Section 148 was issued

beyond the time permissible. Accordingly, the assessment

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order at Annexure-A3 is set aside as well as the

consequential proceedings at Annexures-A4 to A6 are set

aside.

Accordingly, petition is disposed of.

Sd/-

(S SUNIL DUTT YADAV) JUDGE

MCR