SRI BHAGYAMMA vs. INCOME TAX OFFICER

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 23876 OF 2026 (T-IT) BETWEEN: SMT BHAGYAMMA W/O LATE NARAYANA SWAMY AGED ABOUT 54 YEARS NO 25/6, 6TH CROSS ROAD, ATTUR LAYOUT, ESCORT LAYOUT, YELAHANKA, BANGALORE 560064 …PETITIONER (BY SRI. NARENDRA KUMAR J JAIN, ADVOCATE)

AND:

INCOME TAX OFFICER WARD 6(3)(1) BMTC BUILDING, 80 FEET ROAD, KORAMANGALA BANGALORE -560095

INCOME TAX OFFICER WARD 1(1)(1) BMTC BUILDING, 80 FEET ROAD, KORAMANGALA BANGALORE -560095

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

…RESPONDENTS (BY SRI. M. DILIP, ADVOCATE A/W SRI. VINAYAK S. PANDIT, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF HET CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE IMPUGNED ASSESSMENT ORDER DATED 05.03.2024 ISSUED BY THE LEARNED FIRST RESPONDENT UNDER SECTION 147 R.W.S 144 VIDE DIN ITBA/AST/S/147/2023- 24/1061986469(1) FOR AY 2018-19, ENCLOSED IN ANNEXURE A.(B) QUASH AS FAR AS THE PETITIONER IS IMPUGNED DEMAND NOTICE RAISED UNDER SECTION 156 DATED 05.03.2024 FOR THE PAYMENT OF TAX SO ASSESSED ISSUED DIN ITBA/AST/S/156/2023- 24/1061986472(1) FOR THE AY 2018-19, ENCLOSED IN ANNEXURE B.(C) QUASH AS FAR AS THE PETITIONER IS IMPUGNED ORDER UNDER SECTION 272A(1)(D) OF THE INCOME-TAX ACT, 1961 DATED PASSED LEVY

ITBA/PNL/F/272A(1)(D)/2024-25/1068443385(1) THE AY 2018-19, ENCLOSED IN ANNEXURE C.(D) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED DEMAND NOTICE RAISED UNDER SECTION

09.09.2024 FOR THE PAYMENT OF PENALTY U/S 272A(1)(D) SO ASSESSED BY THE LEARNED FIRST ITBA/PNL/S/156/2024- 25/1068439142(1) FOR THE AY 2018-19, ENCLOSED IN ANNEXURE D.(E) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED PENALTY ORDER UNDER SECTION 270A OF INCOME-TAX ACT, PASSED BY THE LEARNED FIRST RESPONDENT FOR LEVY ITBA/PNL/F/270A/2024- 25/1068794673(1) FOR THE AY 2018-19, ENCLOSED IN ANNEXURE E.(F) QUASH AS FAR AS THE PETITIONER IS IMPUGNED DEMAND NOTICE RAISED UNDER SECTION

PAYMENT PENALTY U/S 270A SO ASSESSED BY THE LEARNED ITBA/PNL/S/156/2024- 25/1068793610(1) FOR THE AY 2018-19, ENCLOSED IN ANNEXURE F.(G) QUASH AS FAR AS THE PETITIONER IS

IMPUGNED NOTICE ISSUED UNDER SECTION 148A(B) SECOND RESPONDENT VIDE ITBA ITBA/AST/F/148A(SCN)/2021- 22/1040885482(1) IS ENCLOSED AS ANNEXURE G.(H) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ORDER PASSED UNDER SECTION 148A(B) DATED 23.03.2022 BY THE LEARNED SECOND RESPONDENT VIDE ITBA ITBA/AST/F/148A(SCN)/2021-22/1041319735(1) IS ENCLOSED AS ANNEXURE H.(I) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ORDER PASSED UNDER SECTION 148A(D) DATED 01.04.2022 BY THE LEARNED SECOND ITBA ITBA/AST/F/148A/2022-23/1042418862(1) IS ENCLOSED AS ANNEXURE J.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The reassessment proceedings are begun for the assessment year 2018-19 with the petitioner being issued with notices dated and 23.03.2022 [Annexures – G & H] under Section 148A(b) of the Income Tax Act, 1961 [for short, 'the IT Act']. These proceedings have culminated with the Assessment Order dated 05.03.2024 [Annexure - A] and the subsequent Computation and Penalty after the Order dated 01.04.2022 [Annexure - J] under Section 148A(d) of the IT Act. The details of the impugned Notices and Orders are as follows.

Sl. No Particulars Income Tax Act, Date Annexure Assessment Order 147 r.w.s

B 272A(1)(d) C

D 5. 270A E 6.

F 7. 148A(b) G 8. Order 148A(b) 23.03.2022 H

Mr. Narendra Kumar J. Jain, the learned counsel for the petitioner, Mr. M. Dilip along with Mr. Vinayak S. Pandit who accept notice for the respondents, are heard for disposal of the petition examining whether there must be interference to restore the proceedings for reconsideration and if there must be such interference, the stage from which the proceedings must be recommenced.

Mr. Narendra Kumar J. Jain submits [a] that the petitioner has acquired an immovable property from her parents-in-law, which she has sold for a consideration of Rs.66,00,000/-, [b] that the purchaser has deducted 1% of the sale consideration as TDS and remitted the same to the Department, [c] that this remittance has flagged the initiation of the re-assessment proceedings, [d] that the petitioner, being a homemaker without a digital

footprint except registering for PAN, has reinvested a substantial part of the sale consideration in purchase of another residential property and therefore, is entitled for exemption from Capital Gains Tax, [e] that the records indicate that all the notices have been uploaded on the Portal but the petitioner has not registered herself on the Portal and [f] that the petitioner has not been served with the notices though the proceedings record that the notices have been sent through speed post.

This Court, on a careful consideration of these circumstances, is of the view that the second respondent [the Jurisdictional Assessing Officer] must extend an opportunity to the petitioner to place on record the details of the transaction in response to the notice under Section 148A(b) of the IT Act and conclude on whether it is a fit case for re-assessment under Section 147 of the IT Act with notice under

Section 148 thereof. In the light of the afore, the following. ORDER [A] The petition is allowed in-part quashing the following. Sl. No Particulars Income Tax Act, Date Annexure Assessment Order 147 r.w.s

B 272A(1)(d) C

D 5. 270A E 6.

F 7. Order 148A(d) J 8.

[B] The petitioner is reserved with liberty to file response to the Notices under Section 148A(b) of the IT Act [Annexures - G and H]

with the second respondent along with the supporting documents by 15.09.2026.

Sd/- (B M SHYAM PRASAD) JUDGE