[Cites 4, Cited by 0]
Karnataka High Court
Sanjay Harichand Chugh vs Assessment Unit on 18 February, 2026
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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NC: 2026:KHC:9967
WP No. 5019 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 5019 OF 2026 (T-IT)
BETWEEN:
SANJAY HARICHAND CHUGH
S/O SRI. HARICHAND B.,
AGE ABOUT 56 YEARS,
NO.3 AND 4, WEST PARK ROAD,
KUMARA PARK EAST,
BENGALURU - 560001.
PRESENTLY RESIDING AT:
NO.705, A3 BLOCK,
PURVA ATRIA APARTMENTS,
NO.56/3, RMV 2ND STAGE,
ASHWATH NAGAR,
Digitally BENGALURU - 560094.
signed by ...PETITIONER
VIJAYA P
Location: (BY SRI. S. SHANKAR, SENIOR ADVOCATE FOR
HIGH COURT
OF SRI. VENKATESH G., ADVOCATE)
KARNATAKA
AND:
1. ASSESSMENT UNIT,
REP. BY ADDITIONAL/JOINT/DEPUTY/
ASSISTANT COMMISSIONER OF INCOME TAX/
INCOME TAX OFFILCER,
NATIONAL FACELESS ASSESSMENT CENTRE,
INCOME TAX DEPARTMENT,
MINISTRY OF FINANCE,
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HC-KAR
ROOM NO.401, 2ND FLOOR, E-RAMP,
JAWAHARALAL NEHRU STADIUM,
DELHI - 110003.
2. THE DEPUTY COMMISSIONER OF INCOME TAX,
CIRCLE 5(1) (1),
BMTC BUILDING,
NEAR NATIONAL GAMES VILLAGE,
KORAMANGALA,
BANGALORE - 560095.
...RESPONDENTS
(BY SRI. THIRUMALESH, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
ASSESSMENT ORDER UNDER SECTION 143(3) R.W.S 144B OF
THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT') DATED
02.03.2024 BEARING DIN NO.ITBA/AST/S/143(3)/2023-
24/1061898649(1), FOR THE ASSESSMENT YEAR AY 2022-23,
PASSED BY THE RESPONDENT NO.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
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WP No. 5019 of 2026
HC-KAR
ORAL ORDER
Learned counsel Sri. Thirumalesh, accepts notice for
the respondents.
2. The petitioner has called in question the validity
of the assessment order under Section 143(3) read with
Section 144B of the Income Tax Act, 1961 (for short 'the
Act') passed for the assessment year 2022-23 at
Annexure-A1 and has also sought for setting aside of the
computation sheet at Annexure-A2, demand notice at A3,
penalty order at Annexure-B1, computation sheet at
Annexure-B2, demand notice at Anneure-B3, penalty order
at Annexure-C1, computation sheet at Annexure-C2,
demand notice at Annexure-C3, and the order of rejection
under Section 154 of the Act at Annexure-D.
3. Apart from raising various other contentions, it
is pointed out that the matter requires to be remitted for
reconsideration, as the show-cause notice dated
12.02.2024 was directed to be replied by response by
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18.02.2024. It is submitted that such time limit of less
than 7 days amounts to violation of principles of natural
justice and is also in violation of the SOP applicable for
faceless assessment. Reliance is placed on the order
passed in W.P.No.12923/2023.
4. Learned counsel Sri. Thirumalesh, appearing for
the revenue submits that while the petitioner has sought
to assail the last of the show-cause notices, however, even
in the earlier proceedings, petitioner has not demonstrated
due diligence.
5. Heard both sides.
6. At the outset, it must be noticed that as rightly
pointed out by learned Senior Counsel appearing for the
petitioner, notice at Annexure-F is dated 12.02.2024 and
the time made out for response is 6 days. This Court in
W.P.No.12923/2023 has made certain observations in an
identical factual matrix and the observations at paragraph
Nos.2 to 5 reads as follows:
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"2. Learned counsel for the petitioner submits
that the assessment order is liable to be set
aside on the sole ground of violation of
principles of natural justice as the show cause
notice at Annexure-J was issued on 10.05.2023
seeking for reply before 15.05.2023, which
time for response is contrary to the SOP
applicable for faceless assessment, copy of
which is produced at Annexure-T.
3. Attention is drawn to Clause N.1.3 which
observes that the time for response to a show
cause notice ought to be 7 days from the issue
of show cause notice. He submitted that in the
assessment order it was observed that there
was no reply to the show cause notice and the
Assessing Officer has proceed without any reply
from the petitioner. It is submitted that in the
light of the inadequate time that is available to
make out a response which time limit is
contrary to the SOP relating to time to be given
for response to the show cause notice, it is
submitted that the assessment order may be
set aside and fresh opportunity may be
accorded to the petitioner to make out reply to
the show cause notice.
4. Perused the show cause notice at
Annexure-J.
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5. It is clear that the notice has been issued on
10.05.2023 by 18.14 hours. The response was
directed to be made by 15.05.2023. The time
that is stipulated for response is in clear
violation of the applicable SOP at Clause N.1.3
which requires that at least 7 days time to be
given for the purpose of making out a
response."
7. In light of violation of the applicable SOP at
Clause N.1.3, the proceeding is required to be reopened.
Though learned counsel for the revenue submits that the
petitioner has not been diligent in participating in the
previous proceedings, however, the question to be looked
into is the show-cause notice at Annexure-F which is in
issue. Irrespective of the previous proceedings, if the
illegality is found in the time limit prescribed at
Annexure-F, the said show-cause notice is required to be
set aside and matter be remitted with fresh opportunity to
the petitioner.
8. Accordingly, the orders at Annexures-'A' series,
'B' series, 'C' series and 'D' are set aside and matter is
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remitted to the stage of reply to show-cause notice before
respondent No.2. Petitioner to be present without further
notice on 16.03.2026.
Accordingly, petition is disposed of.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
