SHRI MUDDANAPALYA NARAYANASWAMY V. THE ASSESSMENT UNIT

WP/6271/2026

AI Insights

The case involves Shri Muddana Palya Narayanaswamy Kiran Kumar, the petitioner, challenging the assessment order and related notices issued by various units of the Income Tax Department under the faceless assessment scheme. The petitioner argued that the show cause notice issued on 19.12.2025 did not comply with the SOP, which mandates a minimum of 7 days for the assessee to respond. The respondents, represented by Sri Dilip, did not contest the assertion regarding the non-compliance with the SOP. The court's decision was based on the procedural error of insufficient time provided for the response to the show cause notice, leading to the setting aside of all subsequent orders and notices.

• Counselvise Citation: [] 140 COUNSELVISE.COM (IT) 842679 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-02-2026
• Assessment Year: misc
• Other Referred Cases: W.P. No. 12923/2023
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: SANDEEPANI A NEGLUR
• Keywords: Faceless assessment; Natural Justice; Show cause notice; SOP Compliance
• Section: 144; 250; 144B

Judgement Text

" - 1 - HC-KAR NC: 2026:KHC:11928 WP No. 6271 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 6271 OF 2026 (T-IT) BETWEEN: 1. SHRI MUDDANAPALYA NARAYANASWAMY KIRAN KUMAR, S/O SHRI NARAYANASWAMY, AGED ABOUT 31 YEARS, RESIDING AT NO. F-582, 12TH CROSS, 1ST STAGE, MAGADI MAIN ROAD, BHARATHNAGAR, VISHWANEEDAM POST, BANGALORE - 560 091 … PETITIONER (BY SRI. SANDEEPANI A. NEGLUR., ADVOCATE) AND: 1. THE ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003 2. THE ASSESSMENT UNIT/VERIFICATION UNIT/ TECHNICAL UNIT/REVIEW UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, Printed from counselvise.com Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:11928 WP No. 6271 of 2026 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003 3. INCOME-TAX OFFICER, WARD 6(2)(5), BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BANGALORE - 560 095 4. COMMISSIONER OF INCOME-TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, ROOM NO. 245-A, NORTH BLOCK, NEW DELHI - 110 001 … RESPONDENTS (BY SRI. DILIP., ADVOCATE) *** THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO I. QUASHING THE IMPUGNED ASSESSMENT ORDER DATED 02.01.2026 BEARING DIN NO. ITBA/AST/S/144/2025-26/1084370272(1) PASSED BY THE 1ST RESPONDENT UNDER SECTION 144 R.W.S 250 READ WITH SECTION 144B OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2017-18 (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 SUNIL DUTT YADAV Printed from counselvise.com - 3 - HC-KAR NC: 2026:KHC:11928 WP No. 6271 of 2026 ORAL ORDER Petitioner is seeking for setting aside of the assessment order for the assessment year 2017-18 at Annexure-A; computation sheet at Annexure-A1; demand notice at Annexures-A2 and penalty notices at Annexures- B, B1, B2, and B3. 2. It is the case of the petitioner that the show cause notice dated 19.12.2025 at Annexure-Q was issued with a response required to be filed by 11.00 hours of 24.12.2025. It is submitted that under the faceless scheme, in terms of the SOP applicable relating to issuance of notice and time for response, the assessee is to be provided with a minimum time period of 7 days to respond to the show cause notice. Accordingly, it is submitted that the impugned show cause notice which gave less than 7 days time to respond, is in violation of the applicable SOP and on the said ground, the impugned proceedings are required to be set aside. Printed from counselvise.com - 4 - HC-KAR NC: 2026:KHC:11928 WP No. 6271 of 2026 3. Reliance is placed on the order passed in W.P. No. 12923/2023 wherein this Court has reiterated the adherence to the timeline as specified in the SOP in Clause N.1.3. 4. Sri. Dilip M, learned counsel is unable to controvert the assertion made regarding Annexure-Q show cause notice not being in compliance with the applicable SOP. 5. In light of the time limit afforded at Annexure-Q being within 7 days and being in violation of the applicable SOP at Clause N.1.3 which requires that atleast 7 days' time must be given for the purpose of making out a response, on such sole ground and that such violation would amount to violation of principles of natural justice, the consequential proceedings including assessment orders are required to be set aside. 6. Accordingly, the assessment order at Annexure- A; computation sheet at Annexure-A1; demand notice at Printed from counselvise.com - 5 - HC-KAR NC: 2026:KHC:11928 WP No. 6271 of 2026 Annexures-A2 and penalty notices at Annexure-B, B1, B2, and B3, are set aside. The matter is remitted to the stage of show cause notice dated 19.12.2025. The petitioner is at liberty to make out reply to the same. All contentions are kept open. 7. In light of the above discussion, petition is allowed. Sd/- (S SUNIL DUTT YADAV) JUDGE VP Printed from counselvise.com "