Sri Shanmugam Ravi V. National E Assessment Centre and National Faceless Assessment Centre and The Deputy Commissioner of Income Tax

WP/21873/2021

AI Insights

In this case, the petitioner, Sri Shanmugam Ravi, challenged the assessment order and related notices issued by the Income Tax Department for the assessment year 2018-19. The petitioner argued that the show-cause notice issued by the first respondent did not comply with the standard operating procedure, as it provided less than the stipulated seven days for a response. The court referenced a similar case, P A Educational Trust Vs. Assessment Unit, to support its decision. The court found that the procedural error in issuing the show-cause notice warranted the quashing of all related orders and notices, and remitted the matter back for reconsideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 815669 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 01-12-2025
• Assessment Year: misc
• Other Referred Cases: P A Educational Trust Vs. Assessment Unit, Income Tax Department & Another in W.P.No.12669 of 2025 (T-IT)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: A SHANKAR; LAVA
• Keywords: Assessment Order; Income Tax; Show cause notice; Standard Operating procedure; Writ of Certiorari
• Section: 143(3); 274; 270A; 144B; 156

Judgement Text

" - 1 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 21873 OF 2021 (T-IT) BETWEEN: SRI SHANMUGAM RAVI S/O LATE SRI.SHANGMUM VISHWALINGAM AGED 62 YEARS, NO.583, 15TH MAIN, ARABIC COLLEGE POST, VYALIKAVAL HBCS LAYOUT, NAGAWARA, VEERANNAPALYA, BENGALURU- 560 045 …PETITIONER (BY SRI. A.SHANKAR, SR.COUNSEL FOR SRI. LAVA M., ADVOCATE) AND: 1. NATIONAL E ASSESSMENT CENTRE REP BY ADDITIONAL/JOINT/DEPUTY ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, MINISTORY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP JAWARHALAL NEHRU STADIUM DELHI-110 003. 2. NATIONAL FACELESS ASSESSMENT CENTRE REP BY ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP JAWARHALAL NEHRU STADIUM DELHI-110 003. Printed from counselvise.com Digitally signed by SHARADAVANI B Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 3. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1)(1), BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560 095. …RESPONDENTS (BY SRI. M.DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED BY THE RESPONDENT NO.1 UNDER SECTION 143(3) READ WITH SECTION 144B OF THE INCOME TAX ACT, 1961 DATED 18.05.2021 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE- A1., AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs: i) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent No.1 under Section 143(3) read with Section 144B of the Income-Tax Act, 1961 dated 18.05.2021 for the assessment year 2018- 19 herein marked as Annexure-A1. Printed from counselvise.com - 3 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the computation sheet passed by the Respondent No.1 for the assessment order passed under Section 143(3) read with Section 144B of the Income-tax Act, 1961 dated 18.05.2021 for the assessment year 2018-19 herein marked as Annexure-A2. iii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the notice of demand issued under Section 156 of the Income-tax Act, 1961 dated 18.05.2021 issued by the Respondent No.1 for the assessment year 2018-19 for a sum of Rs.14,16,95,236/- herein marked as Annexure-A3. iv) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of Penalty under Section 274 read with Section 270A of the Income-tax Act, 1961 dated 18.05.2021 issued by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure-A4. v) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity. 2. Heard Sri.A.Shankar, learned Senior Counsel appearing for the petitioner and Sri.M.Dilip, learned counsel appearing for the respondents. Printed from counselvise.com - 4 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 3. A perusal of the material on record will indicate that pursuant to various notices issued by the first respondent commencing from notice dated 22.09.2019 issued under Section 143(2) of the Income-tax Act, 1961, the first respondent issued show-cause notice dated 31.03.2021 along with a draft assessment order to the petitioner calling upon the petitioner to submit a reply on or before 05.04.2021, which is less than the stipulated period of seven days as per the Standard Operating Procedure. Under identical circumstances, in the case of P A EDUCATIONAL TRUST Vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT & ANOTHER in W.P.No.12669 of 2025 (T-IT) disposed of on 29.04.2025, this Court has held as under: \"6. In the instant case, a perusal of the show cause notice would indicate that the same was issued at 03.35.58 pm on 15.01.2025 calling upon the petitioner to submit its reply on or before 01.02 pm on 21.01.2025, which is less than 07 days from the date of issuance of a show cause notice and the same being violative of standard operative procedure as held by the Co-ordinate Bench of this Court in the aforesaid case, I am of the considered opinion that the impugned Printed from counselvise.com - 5 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 assessment order and further notices deserve to be set aside and the matter be remitted back to the concerned respondent for reconsideration afresh from the stage of issuing show cause notice in accordance with law\". 4. In the instant case, the impugned show-cause notice directing the petitioner to file a reply on or before 05.04.2021 is clearly less than seven days and consequently, I am of the considered opinion that the impugned show-cause notice deserves to be quashed and the matter is remitted back to the first respondent for reconsideration from the stage of submitting reply to the show-cause notice, leaving open all contentions. 7. In the result, pass the following: ORDER i) Writ Petition is allowed. (ii) The impugned orders/Notices at Annexures – A1, A2, A3 and A4 passed/issued by respondents are hereby quashed. Printed from counselvise.com - 6 - HC-KAR NC: 2025:KHC:50106 WP No. 21873 of 2021 (iii) Matter is remitted back to the stage of petitioner submitting reply to the show- cause notice dated 31.03.2021 and all other notices and to proceed further, in accordance with law. (iv) All contentions urged by the petitioner are kept open and no opinion is expressed on the same and liberty is reserved in favour of the petitioner to urge all contentions before the Assessing Officer. Sd/- (S.R.KRISHNA KUMAR) JUDGE DH List No.: 2 Sl No.: 30 Printed from counselvise.com "