SHRAM ENTERPRISES, vs. OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX,

WP/10348/2026HC KarnatakaKAHC01023374202629 July 2026Author: B M SHYAM PRASAD11 pages

AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Karnataka disposed of the writ petitions by directing the concerned Principal Commissioner of Income Tax to endeavour to dispose of the appeals before 30.12.2026. The Court acknowledged that the petitioners were not seeking to challenge the assessment orders but were seeking directions for expeditious disposal of their pending appeals. The Court referred to the CBDT communication dated 29.12.2021, which provides guidelines for priority/out-of-turn disposal of appeals. The Court noted that the petitioner in WP No. 10348/2026 could rely on the guideline if the demand exceeded Rs. 1 crore, while the petitioner in WP No. 18648/2026 could rely on the ground of genuine hardship. The petitioners were granted liberty to file a certified copy of the order with the concerned Principal Commissioner of Income Tax. No specific finding was made on the merits of the appeals themselves, as the petitions were for directions.

What were the facts?

The petitioners, Mr. Jothi Venkatesan Alagarsamy (WP No. 18648/2026) and Shram Enterprises (WP No. 10348/2026), have filed writ petitions before the High Court of Karnataka seeking directions for the expeditious disposal of their pending appeals before the Income Tax Appellate Authorities. Mr. Alagarsamy's appeal pertains to Assessment Year 2017-18, with an addition of Rs. 79,67,580/-. Shram Enterprises' appeal relates to Assessment Year 2020-21, with an addition of Rs. 4,80,84,803/-. Both petitioners had requested stay of recovery proceedings, which were granted subject to depositing 20% of the disputed amount. Mr. Alagarsamy complied, but Shram Enterprises had not. The petitions are not challenging the assessment orders themselves but are seeking speedy resolution of their appeals, relying on a communication dated 29.12.2021 regarding priority disposal of appeals.

What were the issues?

1. Whether the petitioners are entitled to directions for the expeditious disposal of their pending appeals before the Income Tax Appellate Authorities, based on the communication dated 29.12.2021 issued by the CBDT regarding priority/out-of-turn disposal of appeals? (Question of law and fact) Assessee's Contention: The petitioners contend that their appeals should be disposed of expeditiously, citing the communication dated 29.12.2021 which outlines guidelines for priority disposal of appeals under certain genuine and exceptional circumstances, such as high demand, senior citizen status, or court directions. They seek directions for the concerned authorities to dispose of their appeals within a specified timeframe. Revenue's Contention: The judgment does not record specific arguments from the revenue regarding the issues raised by the petitioners. However, the revenue is represented by counsel, and the court's order implies consideration of the pending appeals and the guidelines.

Which sections of the Income-tax Act were involved?

Section 226(3)

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP No. 18648 of 2026

WP No. 10348 of 2026

Read from the judgment's own cause title. This page is filed under one of them.

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 18648 OF 2026 (T-IT) C/W WRIT PETITION NO. 10348 OF 2026 (T-IT)

IN WP No. 18648/2026

BETWEEN:

MR. JOTHI VENKATESAN ALAGARSAMY AGE 49 YEARS NO. 102, 1ST MAIN, 1ST CROSS, E - BLOCK. BANGALORE 560 037. …PETITIONER (BY SRI. HARSHITH N. BALAKRISHNA.,ADVOCATE) AND:

THE UNION OF INDIA THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, KARTAVYA BHAVAN-I NEW DELHI, 110 001.

THE PRINCIPAL COMMISSIONER BMTC BUILDING, 80 FEET ROAD,

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, KARNTAKA-560095. …RESPONDENTS (BY SRI. SHIVAKUMAR., CGC FOR R1; VIDE ORDER DATED 14.07.2026; SRI. Y.V. RAVIRAJ A/W SRI. M. DILIP., ADVOCATE FOR R2)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DISPOSE PENDING APPEAL DATED:30.01.2022 (ANNEXURE-B) AND CONSEQUENTLY, CONSIDER THE REPRESENTATION DATED:30.12.2025 (ANNEXURE-G) FILED BY THE PETITIONER FOR EXPENDITIOUSLY POSSIBLE DISPOSAL BY THE R2 WITHIN 3 MONTHS FROM DATE ORDER ASSESSMENT YEAR 2017-18.

IN WP NO. 10348/2026 BETWEEN:

SHRAM ENTERPRISES, NO. 24, OLD.NO. 27 AND 28, THE ROYAL SENATE BELLARY ROAD, HEBBAL, BENGALURU 560024.

REPRESENTED BY ITS PARTNER RAM M BALIKERE, AGED ABOUT 54 YEARS, S/O B.M. BALIKERE, R/AT: RANKA PLAZA, WHEELERS ROAD,

FRAZER TOWN. BENGALURU 560005. THE PETITIONER IS A PARTNERSHIP FIRM REGISTERED UNDER THE PARTNERSHIP ACT 1932. ...PETITIONER (BY SRI. BALRAM R RAO.,ADVOCATE) AND: 1. OFFICE OF THE ASSISTANT COMMISSIONER CIRCLE 6(1)(1), BMTC BUILDING, NEAR GAMES VILLAGE, 80 FEET ROAD, KORAMANGALA, BENGALURU 560095.

ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI II FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003.

SVC CO-OPERATIVE BANK LTD., SVC TOWERS, NEHRU ROAD, SANTACRUZ EAST, MUMBAI 400080.

CANARA BANK, SECTION FM WING, HEAD OFFICE, NO. 122 J C ROAD,

BENGALURU 560002.

BHARAT CO-OPERATIVE BANK LTD (MUMBAI), 1ST FLOOR, MOHAN TERRACE, 64/72 MODY STREET, MUMBAI 400001.

KOTAK MAHINDRA BANK LTD, C-27, G BLOCK, 27 BKC, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI 400051.

AXIS BANK LTD, 3RD FLOOR, TRISHUL, OPP. SAMARTHERESHWAR TEMPLE, LAWGARDEN ELLISBRIDEGE, AHMEDABAD - 380006. ...RESPONDENTS (BY SRI. Y.V. RAVIRAJ, ADVOCATE A/W SRI, M. DILIP ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED LETTER

ITBA/RCV/S/226(3)-1/2025-26/1086548377(1) ANNEXURE-J2 AS WELL AS THE NOTICE ISSUED BY ITBA/RCV/S/226(3)-1/2025- 26/1086774106(1) ANNEXURE - L AS WELL AS THE NOTICE ISSUED BYTHE 1ST RESPONDENT TO 5TH 02.03.2026 I TBA/RCV/S/226(3)-1/2025-26/1086774107(1) ANNEXURE L1 FOR THE ASSESSMENT YEAR 2020 21, PASSED 1ST

RESPONDENT ASSESSMENT YEAR 2020-21, AND II) A WRIT OF MANDAMUS OR A WRIT NATURE MANDAMUS, OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA ORDERING AND DIRECTING RESPONDENTS THEMSELVES, THEIR SUBORDINATE, SERVANTS AGENTS WITHDRAW AND CANCEL THE IMPUGNED LETTER

ITBA/RCV/F/17/2025- 26/1085075880(1) AT ANNEXURE - G AS WELL AS THE NOTICE ISSUED BY THE 1ST RESPONDENT TO 3RD ITBA/RCV/S/226(3)-1/2025-26/1086548372(1) ANNEXURE-J AS WELL AS THE NOTICE ISSUED BY THE 1ST RESPONDENT TO 4TH RESPONDENT UNDER SECTION 226(3) OF THE ACT DTD 25.02.26 IN DIN AND ITBA/RCV/S/226(3)-1/25-26/ 1086548374(1) ANNX-J1 AS WELL AS THE NOTICE ISSUED BY THE R1 TO 5TH RESPONDENT UNDER SECTION 226(3) OF THE ACT DT- 25.02.26 IN DIN AND ITBA/RCV/S/226 (3)-1/25- 26/1086548377(1) ANNX-J2 AS WELL AS THE NOTICE ISSUED BY THE R1 TO R5 UNDER SECTION 226(3) OF THE ACT DT- 02.03.2026 IN DIN AND NOTICE NO- ITBA/RCV/S/226(3)-1/2025-26/1086774106 (1) ANNEXURE - LAS WELL AS THE NOTICE ISSUED BY AND NOTICE NO- ITBA/RCV/S/226(3)-1/2025-L1 FOR THE 26/1086774107(1) ANNEXURE-L1 ASSESSMENT YEAR 2020-21. III) A WRIT OF PROHIBITION OR A WRIT IN THE NATURE OF PROHIBITION OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PROHIBITING AND RESTRAINING THE RESPONDENTS BY THEMSELVES, THEIR SUBORDINATE, SERVANTS AGENTS FROM TAKING ANY ACTION FURTHERANCE OR CONSEQUENT IMPUGNED ORDER PASSED BY 2ND RESPONDENT UNDER SECTION 147 R.W.S 144B OF THE ACT DATED 24.03.2025 IN DIN ORDER NO-ITBA/AST/S/147/2024-25/ 1074941994(1) ANNEXURE-A AS WELL AS THE LETTER

RESPONDENT 5TH 02.03.2026 IN DIN AND NOTICE ITBA/RCV/S/226(3)- 1/2025-26/1086774107(1) ANNEXURE - L1 FOR THE ASSESSMENT YEAR 2020-21.

THESE PETITIONS, COMING ON PRELIMINARY HEARING IN B - GROUP HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner in W.P. No. 18648/2026 has filed an appeal against the Assessment Order dated 24.12.2019 [as seen from Form No.35] with the Commissioner of Income-Tax [Appeals] and the appeal is pending. When queried, this Court is informed that the request for condonation of delay in filing the appeal is also pending. The assessment is complete bringing to tax a sum of Rs.79,67,580/-. The petitioner in W.P. No. 10348/2026 has filed an appeal against the Assessment Order dated 24.03.2025. This appeal is in time.

It is not in dispute that with opportunities being extended to each of these petitioners, they have not uploaded their written submissions and that the petitioners' request for stay is disposed of permitting the benefit subject to deposit of 20% of the amount in due. The petitioner in W.P. No. 18648/2026 has

offered 20% in terms of the order granted by the jurisdictional Assessing Officer, but the petitioner in W.P. No. 10348/2026 has not complied with the terms of the stay which is by the jurisdictional Commissioner of Income-Tax. The petitioners are not seeking for interference with the Assessment Orders but for directions for expeditious disposal of the appeals, and they rely upon the Communication addressed to all the Principal Chief Commissioners of Income-Tax on 29.12.2021.

It is seen from this Communication dated 29.12.2021 that it records that when a request is made for genuine and exceptional reasons a certain category of appeals could be taken up for early disposal. The category of cases that are listed in this Communication reads as under: Guidelines for priority/ out of turn disposal of appeals by CsIT(AU) and CsIT(Appeals) - reg:-

It has come to notice that many taxpayers have requested for priority/out of turn hearing their appeals pending with CsIT(AU) and/or CsIT(A). With a view to address the issue it is decided that requests covering genuine and exceptional circumstances, raised at the instance of the appellant, may be considered by the Pr. CCIT NFAC and CCsIT of Central charges and International Taxation, on the basis of recommendations of jurisdictional Pr.CIT / Pr.CIT (Central) / CIT(IT), in the following situations. i) Cases having demand above Rs.1Cr. ii) Cases where refunds, as originally claimed in ITR, are in excess of Rs.1,00,000/-. iii) Cases where directions to this effect have been issued by Courts. iv) Cases where request is made by senior citizens and /or super senior citizens. v) Any other case of genuine hardship.

The assessment proceedings in the case of the petitioner in W.P. No. 10348/2026 is concluded with the addition of Rs.4,80,84,803/-. If this

petitioner could rely upon the Guideline because the demand is in excess of Rs.1 crore, the petitioner in W.P. No. 18648/2026 could rely upon this Guideline only on the ground of genuine hardship. The petition stands disposed of with liberty to each of these petitioners to file a certified copy of this order with the concerned Principal Commissioner of Income Tax who is called upon to endeavour to dispose of the appeal before 30.12.2026.

Sd/- (B M SHYAM PRASAD) JUDGE

NV List No.: 1 Sl No.: 76

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