Virupakshan Vinaykumar V. The Assessment Unit Income Tax Department National Faceless Assessment Centre and The Income Tax Officer Ward 7(2)(5) and The Income Tax Officer International Taxation Ward 2(1) and The National Faceless Appeal Centre Income Tax Department

W.P.(C)/880/2026

AI Insights

The case involves Virupakshan Vinaykumar, represented by his general power of attorney holder S.C.C. Aradhya, challenging an assessment order passed by the Income Tax Department under sections 147, 144, and 144B of the Income Tax Act for the assessment year 2016-17. The petitioner, an NRI, contended that he did not respond to the show cause notices posted on the portal due to not receiving them, while the revenue argued that notices were served via speed post. The main issue revolved around an addition of Rs.53,77,488 as unexplained money, which the petitioner claimed was a loan, supported by a loan account statement. The court, considering the circumstances, decided to set aside the assessment order and provide the petitioner an opportunity to respond to the show cause notice.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834754 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 03-02-2026
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 147 r.w.s 144 r.w.s. 144B of the Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: MADHUSUDHAN
• Keywords: Assessment Order; Show cause notice; Unexplained money; Writ of Certiorari; Loan Account Statement
• Section: 147; 144; 144B; 148A(b); 226; 227

Judgement Text

" - 1 - HC-KAR NC: 2026:KHC:6110 WP No. 2970 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 2970 OF 2026 (T-IT) BETWEEN: VIRUPAKSHAN VINAYKUMAR REPRESENTED BY GENERAL POWER OF ATTORNEY HOLDER S.C.C. ARADHYA AGED ABOUT 71 YEARS NO. 14, ABHYUDAYA, 1ST CROSS BEHIND CHURCH GOPIFARM EXTENSION KENGERI UPANAGAR BANGALORE 560060, KARNATAKA. …PETITIONER (BY SRI. MADHUSUDHAN U. A., ADVOCATE) AND: 1. THE ASSESSMENT UNIT INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE MINISTRY OF FINANCE, ROOM NO 401 2ND FLOOR, E-RAMP JAWARLAL NEHRU STADIUM DELHI-110 003. 2. THE INCOME TAX OFFICER WARD 7(2)(5), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU KARNATAKA - 560 095. 3. THE INCOME TAX OFFICER INTERNATIONAL TAXATION Printed from counselvise.com Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:6110 WP No. 2970 of 2026 WARD 2(1), BMTC BUILDING 80 FEET ROAD, 6TH BLOCK NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU KARNATAKA - 560 095. 4. THE NATIONAL FACELESS APPEAL CENTRE INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTRE MINISTRY OF FINANCE ROOM NO 401, 2ND FLOOR E-RAMP, JAWARLAL NEHRU STADIUM DELHI-110 003. …RESPONDENTS (BY SRI. E. I. SANMATHI., ADVOCATE) *** THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ASSESSMENT ORDER DATED 18.12.2023 PASSED UNDER SECTION 147 R.W.S 144 R.W.S. 144B OF THE ACT FOR THE ASSESSMENT YEAR 2016-17 BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/S/147/2023-24/1058828523(1) HEREIN MARKED AS ANNEXURE-A1. 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:6110 WP No. 2970 of 2026 ORAL ORDER Petitioner has sought to challenge the validity of the assessment order at Annexure-A1. 2. The contention raised is that the petitioner is an NRI and had not made out any response to the show cause notices which were posted on the portal. 3. Insofar as such contention is concerned, learned counsel for the revenue submits that notice by way of speed post was in fact served on the petitioner at an earlier point in the same proceedings. 4. Petitioner submits that even otherwise the variation is by way of addition in respect of unexplained money of Rs.53,77,488/-, which has been affirmed in the impugned order as regards which petitioner has sufficient material to explain that the amount was received by way of loan and accordingly the show cause notice could be replied. Reliance is placed on the loan account statement at Annexure-D. Printed from counselvise.com - 4 - HC-KAR NC: 2026:KHC:6110 WP No. 2970 of 2026 5. Taking note of the proposed explanation which prima facie would indicate that petitioner has a case to be explained by way of reply to the show cause notice, it would be appropriate to take a lenient view of the lapse in not making out reply to the show cause notice. Insofar as such lapse is concerned, petitioner is put to terms. 6. In order to provide an opportunity to the petitioner for making out a reply to the show cause notice, assessment order at Annexure-A1 is set aside. The consequential orders at Annexures-A2 to A12 and B2 to B4 are set aside. The matter is remitted to the stage of reply to the show cause notice under Section 148A(b) of the Income Tax Act. Petitioner to pay cost of Rs.10,000/- to the High Court Legal Services Committee. All contentions on merits are kept open. 7. Accordingly, the petition is disposed of. Sd/- (S SUNIL DUTT YADAV) JUDGE VP Printed from counselvise.com "