Theos Metals Tada Private Limited V. Assessment Unit Rep. by Additional/Joint/Deputy/Assistant Commissioner of Income-Tax and The Deputy Commissioner of Income Tax Circle 7(1)(1)

WP/12955/2025

AI Insights

The case involves Theos Metals Tada Private Limited, which filed a writ petition against the penalty order passed by the Income Tax Department under Section 270A of the Income Tax Act, 1961, for the assessment year 2022-23. The petitioner had previously challenged an assessment order, which was set aside by the court, leading to the current dispute over the penalty. The court found that since the assessment order was set aside, the penalty order, computation sheet, and demand notice issued subsequently were also liable to be quashed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 821536 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2025
• Assessment Year: misc
• Other Referred Cases: W.P.No.19635/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI M DILIP
• Assessee Lawyers: VENKATESH
• Keywords: Assessment Order; Faceless assessment; Income Tax; Penalty order; Writ of Certiorari
• Section: 270A; 226; 227

Judgement Text

" - 1 - HC-KAR NC: 2025:KHC:51462 WP No. 12955 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12955 OF 2025 (T-IT) BETWEEN: THEOS METALS TADA PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013 REPRESENTED BY DIRECTOR SRI. VIJAY LOKESH MALUR SON OF SRI. SRI. MALUR VENKATARAMANAPPA HANUMANTHAIAH, AGED ABOUT 43 YEARS, NO.318A AND 318B, MALUR III PHASE INDUSTRIAL AREA, MALUR – 563 130 KOLAR DISTRICT …PETITIONER (BY SRI. VENKATESH G., ADVOCATE) AND: 1. ASSESSMENT UNIT REP. BY ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME-TAX I NCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME-TAX DEPARTMENT, MINISRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI – 110 003. 2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 7(1)(1), BMTC BUILDING, NEAR NATIONAL GAMES VILLAGE, KORAMANGALA, BANGALORE – 560 095. …RESPONDENTS (BY SRI. E.I. SANMATHI & SRI M. DILIP, ADVOCATES) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PENALTY ORDER Printed from counselvise.com Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:51462 WP No. 12955 of 2025 PASSED BY THE RESPONDENT NO.1 UNDER SECTION 270A OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) BEARING DIN NO. ITBA/PNL/F/270A/2024-25/1069121484(1) FOR THE ASSESSMENT YEAR 2022-23 HEREIN MARKED AS ANNX-A1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, 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) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the penalty order passed by the Respondent No.1 under section 270A of the Income Tax Act, 1961 (for short ‘the Act’) bearing DIN No.ITBA/PNL/F/270A/2024-25/1069121484(1) for the Assessment Year 2022-23, herein marked as Annexure-A1. ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the computation sheet dated 26.09.2024 bearing DIN and Document No. ITBA/PNL/S/270A/2024-25/1063211884(1) for the Assessment year 2022-23 issued by the Respondent No.1,herein marked as Annexure-A2. iii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the demand notice dated 26.09.2024 issued u/s 156 bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1069117731(1) for the assessment year AY 2022-23 issued by the Respondent No.1, herein marked as Annexure-A3. Printed from counselvise.com - 3 - HC-KAR NC: 2025:KHC:51462 WP No. 12955 of 2025 iv) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that aggrieved by the Assessment Order dated 22.03.2024, the petitioner approached this Court in W.P.No.19635/2024, which was allowed and disposed of vide final order dated 17.09.2024 by remitting the matter back to respondent No.1 for reconsideration afresh, in accordance with law. It is the grievance of the petitioner that though the Assessment Order is set aside, the respondent has proceeded to pass the impugned penalty order under Section 270A of the Income Tax Act, 1961, which is assailed in the present petition. 4. The aforesaid facts and circumstances will clearly indicate that when the Assessment Order itself is set aside, the impugned penalty order also deserves to be quashed by reserving liberty in favour of the respondent to initiate fresh proceedings after completion of assessment proceedings. Printed from counselvise.com - 4 - HC-KAR NC: 2025:KHC:51462 WP No. 12955 of 2025 5. In the result, I pass the following: ORDER (i) The petition is allowed. (ii) The impugned penalty order, computation sheet and demand notice, all dated 26.09.2024, at Annexures-A1 to A3 respectively, passed/issued by respondent No.1 are hereby quashed. (iii) Liberty is reserved in favour of the respondents to initiate fresh penalty proceedings after conclusion of Assessment proceedings. Sd/- (S.R.KRISHNA KUMAR) JUDGE BMC List No.: 2 Sl No.: 74 Printed from counselvise.com "