SRI KALEEM KHAN V. ASSESSMENT UNIT

WP/5137/2026

AI Insights

The case involves a writ petition filed by Sri. Kaleem Khan against the Assessment Unit National Faceless Assessment Centre and other respondents, challenging an ex-parte assessment order under Section 147 read with Section 144 and Section 144B of the Income Tax Act, 1961. The petitioner argued that he was unable to participate in the proceedings due to bona-fide reasons, leading to a best judgment assessment being made without his input. The respondents contended that the petitioner was responsible for not participating in the proceedings. The court, after considering the circumstances and potential consequences for the petitioner, decided to set aside the previous orders and remand the case for a fresh assessment.

• Counselvise Citation: [] 140 COUNSELVISE.COM (IT) 840662 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-02-2026
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: SANDEEP HUILGOL
• Keywords: Assessment Order; Best Judgment Assessment; Ex-parte; Income Tax; Writ petition
• Section: 147; 148; 144; 144B

Judgement Text

" - 1 - HC-KAR NC: 2026:KHC:9966 WP No. 5137 of 2026 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. 5137 OF 2026 (T-IT) BETWEEN: SRI. KALEEM KHAN S/O BASHEER KHAN, AGED ABOUT 59 YEARS, RESIDING AT NO.45, MARUTHI NAGAR, NEAR KEB OFFICE, BTM LAYOUT, 1ST STAGE, MADIWALA, BANGALORE SOUTH, BOMMANAHALLI, BANGALORE - 560 068. ALSO AT NO.45, 2ND FLOOR, 2ND CROSS, H. SIDDAIAH ROAD, BANGALORE - 560 027. …PETITIONER (BY SRI. SANDEEP HUILGOL, ADVOCATE) AND: 1. ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, 2ND FLOOR, JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110 003. 2. INCOME TAX OFFICER, WARD 4(3)(2), BANGALORE, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. Printed from counselvise.com Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:9966 WP No. 5137 of 2026 3. PRINCIPAL CHIEF COMMISSIONER OF INCOME-TAX, KARNATAKA AND GOA REGION, CR BUILDING, NO.1, QUEENS ROAD, BANGALORE - 560 001. …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 31.03.2023 BEARING DIN AND NOTICE NO.ITBA/AST/S/148-1/2022-23/1051758359(1) ISSUED BY RESPONDENT NO.2 UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 FOR ASSESSMENT YEAR 2016-17 (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 ORAL ORDER Learned counsel Sri. E.I. Sanmathi accepts notice for the respondents. 2. The petitioner has called in question the correctness of the assessment order passed under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, 1961 (for short 'the Act'). It is submitted Printed from counselvise.com - 3 - HC-KAR NC: 2026:KHC:9966 WP No. 5137 of 2026 that the petitioner could not participate in the proceedings and has not made out reply to the notice issued under Section 148 of the Act or other notices referred to as paragraph No.2 of the table. It is submitted that such lapse is due to bona-fide reasons and the authority has passed an order on the basis of best judgment assessment. It is submitted that the Court may take a lenient view of the matter and reopen the proceedings and enable the petitioner to take stand on merits. Further pointed out that consequential proceedings may also be set aside. 3. Learned counsel appearing for the department submits that taking note the assessment order is an ex-parte order, the Court may pass appropriate orders while asserting that the petitioner is responsible for not participating in the proceedings. 4. Perused the order at Annexure-B. It is noticed on perusal of paragraph No.2 of the order that the Printed from counselvise.com - 4 - HC-KAR NC: 2026:KHC:9966 WP No. 5137 of 2026 proceedings have proceeded ex-parte. In the sense, there is no stand of the petitioner on merits. It is further noticed that certain variations have been proposed and proceedings have culminated in an order. 5. Taking note of the consequences that would visit the petitioner if the order at Annexure-B is permitted to sustain, it would be appropriate to set aside the order at Annexure-B and remit back the matter to the stage of filing return in response to the notice issued under Section 148 of the Act at Annexure-A. 6. Accordingly, the order at Annexure-'B' series, 'C' series, 'D' series and 'E' series are set aside as also the recovery letter at Annexure-F, in light of the order of assessment being set aside and matter being remitted. All contentions are kept open. 7. In light of the reasons assigned in the application, I.A.No.1/2026 is allowed and petitioner is Printed from counselvise.com - 5 - HC-KAR NC: 2026:KHC:9966 WP No. 5137 of 2026 dispensed with production of certified copies of Annexures- A, A1, B to B2, C to C2, D to D2, E to E2 and F. 8. Accordingly, petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE MCR Printed from counselvise.com "