Full Judgment
-1-
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 33300 OF 2025 (T-IT) BETWEEN: M/S TECHNICAL EDUCATIONAL DEPARTMENTAL EMPLOYEES CREDIT COOPERATIVE SOCIETY A CO-OPERATIVE SOCIETY REGISTERED UNDER KARNATAKA CO OPERATIVE SOCIETIES ACT 1959 REPRESENTED BY HEREIN BY ITS PRESIDENT SHRI CHALAPATHI M. HAVING ITS REGISTERED OFFICE AT NO.311, THANRIRA, SHISHAWA BHAVANA BANGALORE - 560 007 …PETITIONER (BY SRI. SANDEEP HUILGOL, ADVOCATE) AND:
1. ASSESSMENT UNIT
Digitally NATIONAL FACELESS ASSESSMENT CENTRE signed by INCOME TAX DEPARTMENT, CHANDANA BM 2ND FLOOR, JAWAHARLAL NEHRU STADIUM NEW DELHI - 110 003 Location: High Court of Karnataka 2. ASSESSMENT UNIT / VERIFICATION UNIT / TECHNICAL UNIT / REVIEW UNIT NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM NEW DELHI - 110 003
3. INCOME TAX OFFICER WARD1(1)(1), BANGALORE BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, KORAMANGALA BANGALORE - 560 095 -2-
4. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX BENGALURU-1, BENGALURU C R BUILDING NO.1, QUEEN’S ROAD BANGALORE - 560 001
5. INCOME TAX OFFICER WARD 4(1)(1) BANGALORE BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA BANGALORE - 560 095 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE IMPUGNED NOTICE OF DEMAND DATED 24.03.2023 BEARING DIN & NOTICE
NO. ITBA/AST/S/148_1/2022-23/1051252637(1) ISSUED BY RESPONDENT NO.3 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961 FOR ASSESSMENT YEAR 2019-20 (ANNEXURE ‘A’) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In this petition, petitioner seeks for the following reliefs:- “(i) Quashing the impugned notice dated 24.03.2023 bearing DIN & Notice No. ITBA/AST/S/148_1/2022- Section 148 of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'A');
(ii) Quashing the impugned order dated 24.03.2023 bearing no. ITBA/AST/F/148A/2022- -3- under Section 148A(d) of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'A1');
(iii) Quashing the impugned Assessment order dated
13.02.2024 bearing DIN no. ITBA/AST/S/147/2023- under Section 147 read with section 144 read with section 144B of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'B');
(iv) Quashing the impugned Computation Sheet dated 13.02.2024 bearing DIN no. ITBA/AST/S/719/2023- Assessment Year 2019-20 (Annexure 'B1');
(v) Quashing the impugned Notice of Demand dated 13.02.2024 bearing DIN no. ITBA/AST/S/156/2023- Section 156 of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'B2');
(vi) Quashing the impugned Penalty order dated
22.08.2024 bearing DIN nо. ITBA/PNL/ F/272A(1)(d)/2024-25/1067971262(1) passed by Respondent No. 1 under Section 272A(1) (d) of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'C');
(vii) Quashing the impugned Computation Sheet dated 22.08.2024 passed by Respondent No. 1, bearing DIN no. ITBA/PNL/5/272A(1)(d)_FL/2023-24/1060830671
(1) Assessment Year 2019-20 (Annexure 'C1'); for -4-
(viii) Quashing the impugned Notice of Demand, dated 22.08.2024 bearing DIN nо. ITBA/PNL/S/156/2024- under Section 156 of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'C2');
(ix) Quashing the impugned Penalty order dated
27.08.2024 bearing DIN no. ITBA/PNL/F/ 271AAC(1)/2024-25/1068059519(1) passed by Respondent No. 1 under Section 271AAC(1) of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'D');
(x) Quashing the impugned Computation Sheet dated 27.08.2024 passed by Respondent No. 1 bearing DIN no. ITBA/PNL/S/271AAC(1)/2023-24/1060830989(1) Assessment Year 2019-20 (Annexure 'D1'); for
(xi) Quashing the Impugned Notice of Demand dated
27.08.2024 passed by Respondent No. 1 under Section 156 of the Act, bearing DIN no. ITBA/PNL/S/156/2024-25/1068059376(1) of the Income-Tax Act, 1961 for Assessment Year 2019-20 (Annexure 'D2');
(xii) Quashing the impugned recovery letter dated 08.10.2024 issued by Respondent No. 5, bearing DIN & Letter No. ITBA/COM/F/17/2024-25/1069507610(1) for Assessment Year 2019-20 (Annexure 'E'); (xiii) Quashing the impugned recovery letter dated 28.07.2025 issued by Respondent No. 5, bearing DIN -5- & Letter No. ITBA/RCV/F/17/2025-26/1078962759(1) for Assessment Year 2019-20 (Annexure 'E1');”
2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner invited my attention to the
order of a Co-ordinate Bench of this Court in the case of
Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax - W.P.No.17352/2022 and connected matters - dated 28.08.2025, in order to contend that the present petition deserves to be allowed and disposed of in terms of the said order.
4. Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.
5. As rightly contended by the learned counsel for the
petitioner the present petition is directly and squarely covered by the decision of a Co-ordinate Bench of this Court in the case of Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of -6- Income-tax - W.P.No.17352/2022 and connected matters - dated 28.08.2025, the operative portion of which reads as under: "13. I, therefore, pass the following:
ORDER
(i) The impugned show cause notices issued by the
jurisdictional Assessing Officer outside the scope of Section 151-A of the Act stand obliterated. All further proceedings initiated thereto, challenged in these cases would stand quashed.
(ii) Liberty is reserved to the respondents - revenue to revive all these petitions in the event the Apex Court would hold in favour of the Revenue in the pending before it.
(iii) With the aforesaid liberty and to the aforesaid extent, the petitions are allowed.
(iv) Contentions of both the parties except the one noted hereinabove, shall remain open to be considered in the event revival of these petitions would become necessary."
6. The aforesaid order is applicable to the facts and
circumstances of the instant case and consequently, the present petition also deserves to be disposed of in terms of the judgment of co-ordinate Bench of this Court in Ramachandra Reddy's case (supra). -7-
7. In the result, I pass the following:
ORDER
(i) The petition is allowed and disposed of in terms of
the decision of a Co-ordinate Bench of this Court in the case of Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax - W.P.No.17352/2022 and connected matters - dated 28.08.2025.
(ii) The impugned show cause notices and
consequential orders, notices etc., at Annexures-B, B1, B2, C, C1, C2, D, D1, D2, E and E1 dated 13.02.2024, 13.02.2024, 13.02.2024, 22.08.2024, 22.08.2024, 22.08.2024, 27.08.2024, 27.08.2024, 27.08.2024, 08.10.2024 and 28.07.2025, respectively, are hereby quashed.
(iii) Liberty is reserved in favour of the respondents -
Revenue to seek revival of this petition, subsequent to disposal of the matters pending before the Apex Court and all rival contentions between the parties in this regard are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 25