[Cites 5, Cited by 0]
Karnataka High Court
Sri Sai Traders vs National Faceless Assessment Centre on 27 March, 2026
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NC: 2026:KHC-D:4839
WP No. 103752 of 2022
HC-KAR
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 27TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE MS. JUSTICE JYOTI M
WRIT PETITION NO. 103752 OF 2022 (T-IT)
BETWEEN:
SRI. SAI TRADERS,
PAN: ABBFS6891B,
DISSOLVED PARTNERSHIP FIRM,
UNDER THE PARTNERSHIP ACT, 1932,
R/BY ITS ERSTWHILE PARTNER,
SRI. RAMESH BABU RACHAMDUGU
S/O. GIRIYAPPA VENKATASWAMY RACHAMDUGU,
AGED ABOUT 54 YEARS,
OFFICE AT APMC YARD,
RANEBENNUR, HAVERI-581115.
...PETITIONER
(BY SRI. S.ANNAMALAI AND
SRI. SHASHANK.S.HEGDE, ADVOCATES)
AND:
Digitally signed by
1. NATIONAL FACELESS ASSESSMENT CENTRE,
PREMCHANDRA
MR R/BY ADDITIONAL/JOINT/DEPUTY/
Location: HIGH
COURT OF
KARNATAKA ASSISTANT 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.
2. THE INCOME-TAX OFFICER,
WARD-1, HAVERI,
SHREE TOWERS,
HADADI MAIN ROAD,
OPPOSITE DRR HOSPITAL,
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NC: 2026:KHC-D:4839
WP No. 103752 of 2022
HC-KAR
DAVANAGERE-577002,
KARNATAKA.
...RESPONDENTS
(BY SRI.M.THIRUMALESH AND
SMT. ROOPA ANAVEKAR, ADVOCATES)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN
RELIEFS.
THIS WRIT PETITION IS LISTED FOR PRELIMINARY
HEARING IN 'B' GROUP, THIS DAY, AN ORDER IS MADE AS
UNDER:
ORAL ORDER
Sri.S.Annamalai and Sri.Shashank Hegde., counsel for the
petitioner and Sri.M.Thirumalesh & Smt.Roopa Anavekar.,
counsel for the respondents have appeared in person.
2. The Writ Petition is filed seeking the following
prayers:
"i) Issue a writ of Certiorari quashing the assessment
order passed under section 147 r.w.s 144 r.w.s 144B
of the Act dated 25/03/2022 bearing DIN No:
ITBA/AST/S/147/2021-22/1041585014(1) for the
Assessment Year 2017-18 by the Respondent No. 1
herein marked as Annexure-A1.
ii) Issue a writ of Certiorari quashing the computation
sheet dated 25/03/2022 bearing DIN and Document
No: ITBA/AST/S/215 /2021-22/1041585059(1) for
the Assessment Year 2017-18 issued by the
Respondent No. 1 herein marked as Annexure-A2.
iii) Issue a writ of Certiorari quashing the Notice of
demand issued under section 156 of the Act dated
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HC-KAR
25/03/2022 bearing DIN and Notice No:
ITBA/AST/S/156/2021-22/1041585203(1) for the
Assessment Year 2017-18 by the Respondent No.1
herein marked as Annexure-AЗ.
iv) Issue a writ of Certiorari quashing the show cause
notice for penalty issued under Section 271AAC(1) of
the Act dated 27/07/2022 bearing DIN No:
ITBA/PNL/F/271AAC(1)/2022-23/1044132949(1) for
the Assessment Year 2017-18 by the Respondent
No.1 herein marked as Annexure-A4.
v) Issue a writ of Certiorari quashing the notice issued
under Section 148 of the Act dated 30/03/2021
bearing DIN and Notice No: ITBA/AST/S/148/2020-
21/1031909840(1) for the Assessment Year 2017-18
by the Respondent No.2 herein marked as Annexure-
B.
vi) And pass such other orders as this Hon'ble Court
deems fit and proper in the interest of justice and
equity.
3. Counsel for the respective parties have advanced
their contentions. The arguments have been heard and the
records perused with due care.
4. The facts, in brief, disclose that a notice dated
30.03.2021 was issued to the petitioner under Section 148 of the
Income Tax Act, 1961. The petitioner submits that he was unable
to access the online portal and, therefore, could not submit a
reply to the said notice. Subsequently, a notice dated
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HC-KAR
27.09.2021 under Section 142(1) of the Act was issued, to which
the petitioner submitted a detailed reply on 11.10.2021.
The grievance of the petitioner is that the said reply has
not been taken into consideration by the respondent
Department, which proceeded to pass the impugned assessment
order and consequential proceedings.
Upon perusal of the material on record, it is evident that
the petitioner had indeed submitted a reply to the notice dated
27.09.2021. However, the assessment order proceeds on the
erroneous premise that no reply was filed by the assessee. The
said finding is factually incorrect. The reply submitted by the
petitioner is placed on record as Annexure-E. In view of the
above, this Court is of the considered opinion that the
assessment order has been passed without due consideration of
a material reply submitted by the petitioner. Non-consideration
of such a reply vitiates the impugned proceedings and renders
the assessment order unsustainable in law.
5. Accordingly, the assessment order dated 25.03.2022
passed by Respondent No.1 (Annexure-A1) is hereby quashed.
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HC-KAR
Consequently, the computation sheet dated 25.03.2022
(Annexure-A2), the notice of demand dated 25.03.2022
(Annexure-A3), and the show cause notice dated 27.07.2022
(Annexure-A4) also stand quashed. The matter is remitted to
the stage of submission of a reply to the notice dated
30.03.2021 issued under Section 148 of the Act.
Lastly, counsel for the petitioner further submits that, for
the Assessment Year 2018-19, after the dissolution of the
partnership firm, the respondent Department has passed an
order holding that it is not a fit case for issuance of notice under
Section 148 of the Act. It is therefore requested that while
reconsidering the present matter, the respondent Department be
directed to take into consideration the order passed under
Section 148A(d) of the Act for the said assessment year.
The said submission is taken on record. The respondent-
Department shall consider the reply to be filed by the petitioner
and shall also take into account the order passed under Section
148A(d) of the Act for the Assessment Year 2018-19, and
thereafter proceed in accordance with law.
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HC-KAR
6. With the above observations, the writ petition stands
allowed. The matter is remanded for fresh consideration in
accordance with the law.
7. Ordered accordingly.
Sd/-
(JYOTI M)
JUDGE
RH
List No.: 1 Sl No.: 52
