PETER GLEN DSA vs. INCOME TAX OFFICER

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WP/14573/2026HC KarnatakaKAHC01031248202621 July 2026Author: B M SHYAM PRASAD9 pages
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What did the High Court hold?

The High Court of Karnataka allowed the writ petition, quashing the show cause notice issued under Section 148A(b) of the Income Tax Act, 1961, dated 06.08.2024, and all subsequent proceedings. The Court found that the proceedings were indeed barred by limitation. The undisputed facts presented were that the limitation period under Section 149(1)(a) for AY 2018-19 expired on 31.03.2022, and the notice under Section 148A(b) was issued on 06.08.2024, well after this expiry. Furthermore, the alleged escaped income of Rs. 18,00,000 was below the Rs. 50,00,000 threshold. The Court reasoned that since the initiation of proceedings was inarguably barred by limitation, the show cause notice and all consequential orders and notices had to fail. The operative direction was to quash the specified notices and orders.

What were the facts?

The petitioner, Peter Glen Dsa, filed a writ petition before the High Court of Karnataka challenging various notices and orders issued by the Income Tax Officer, Ward 2(1), Mangalore, for the Assessment Year 2018-19. The challenge was primarily against a show cause notice dated 06.08.2024 under Section 148A(b) of the Income Tax Act, 1961, and subsequent proceedings including an order under Section 148A(d), notice under Section 148, assessment order under Section 147, demand notice under Section 156, and penalty notices under Sections 274 read with 272A(1)(d) and 270A. The petitioner contended that these proceedings were initiated beyond the prescribed limitation period.

What were the issues?

1. Whether the notice issued under Section 148A(b) of the Income Tax Act, 1961, dated 06.08.2024, for Assessment Year 2018-19, is barred by limitation, thereby vitiating all subsequent proceedings. Assessee's Contention: The petitioner argued that the limitation period for initiating reassessment proceedings for AY 2018-19 had expired. Specifically, the notice under Section 148A(b) was issued on 06.08.2024, which is significantly after 30.06.2024, the presumed expiry of the limitation period as per Section 149(1)(a) of the Act. The petitioner also noted that the alleged escaped income of Rs. 18,00,000 was below the threshold of Rs. 50,00,000 required for extended limitation periods. Revenue's Contention: The judgment records that the learned Senior Standing counsel for the respondents was heard, but it does not detail the specific arguments presented by the revenue regarding the limitation period or any exceptions that might apply.

Which sections of the Income-tax Act were involved?

Section 148A,Section 149,Section 148,Section 147,Section 156,Section 274,Section 272A(1)(d),Section 270A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14573 OF 2026 (T-IT)

BETWEEN:

PETER GLEN DSA S/O FILBERT JOACHIM DSA, AGED ABOUT 63 YEARS, R/A MARIA GARDEN PUMP WELL, MANGALORE, DAKSHINA KANNADA 575002, KARNATAKA.

…PETITIONER (BY SRI.PRASANNA B M.,ADVOCATE)

AND:

1.

INCOME TAX OFFICER WARD 2(1) C R BUILDING, NEAR AMANTRANA HOTEL, ATTAVAR, MANGALORE - 575001.

2.

NATIONAL FACELESS ASSESSMENT CENTRE 2ND FLOOR, E-RAMP,

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

JAWAHARLAL NEHRU STADIUM, NEW DELHI - 110003. …RESPONDENTS (BY SRI.M. THIRUMALESHA., ADVOCATE A/W SRI.NIRMAL MATHEW., ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE IMPUGNED NOTICE ISSUED UNDER CLAUSE (b) OF SECTION 148A OF THE INCOME TAX ACT, 1961 DATED 06.08.2024 BEARING ITBA/COM/F/17/2024- 25/1067340821(1) ANNEXURE-A ASSESSMENT YEAR 2018-19 AND; B. QUASH AND SET ASIDE IMPUGNED ORDER UNDER CLAUSE (d) OF SECTION 148A OF THE INCOME TAX ACT, 1961 DATED 30.08.2024 BEARING DIN AND ORDER NO. ITBA/COM/F/17/2024-25/1068153617(1) ANNEXURE-B PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 AND; C. QUASH AND SET ASIDE THE IMPUGNED NOTICE ISSUED UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 DATED 30.08.2024 BEARING DIN AND NOTICE NO. ITBA/AST/ M/ 148-1/ 2024-25/ 1068185721(1) ENCLOSED AS ANNEXURE-C PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 AND; D. QUASH AND SET ASIDE THE IMPUGNED ASSESSMENT ORDER

PASSED UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 ITBA/AST/S/147/2025-26/1087018357(1) AS ANNEXURE-N PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 AND; E. QUASH AND SET ASIDE THE DEMAND NOTICE ISSUED UNDER SECTION 156 OF THE INCOME TAX ACT, 1961 DATED DIN.ITBA/AST/S/156/2025- 26/1087024160(1) ANNEXURE-P ASSESSMENT YEAR 2018-19 AND; F. DIRECTING TO QUASH AND SET ASIDE THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 DATED 06.03.2026 IN DIN AND NOTICE NO. ITBA/PNL/S/272A(1) (d)/2025-26/1086964687(1) DATED 06.03.2026 ENCLOSED ANNEXURE-Q PASSED BY THE 1ST RESPONDENT, THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 270A OF THE INCOME TAX ACT, 1961 BEARING DIN AND NOTICE NO.ITBA/PNL/S/270A/2025-26/1087021720(1) DATED 06.03.2026 ENCLOSED AS ANNEXURE-R AND THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 IN DIN AND NO.ITBA/PNL/S/271AAC(1)/2025- 26/1086964998(1) DATED 06.03.2026 ENCLOSED AS ANNEXURE-S PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 AND; G. DIRECTING THE RESPONDENTS TO WITHDRAW AND CANCEL THE

IMPUGNED ASSESSMENT ORDER PASSED UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 DATED ITBA/AST/S/147/2025- 26/1087018357(1) DATED 06.03.2026 ENCLOSED AS ANNEXURE-N PASSED BY THE 1ST RESPONDENT, THE DEMAND NOTICE ISSUED UNDER SECTION 156 OF ACT AN ITBA/AST/S/156/2025-26/1087024160(1) 06.03.2026 ENCLOSED AS ANNEXURE-P PASSED BY THE 1ST RESPONDENT AND PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 DATED 06.03.2026 IN DIN AND NOTICE ITBA/PNL/S/272A(1)(d)/2025-26/1086964687(1) DATED 06.03.2026 ENCLOSED ANNEXURE-Q PASSED BY THE 1ST RESPONDENT, THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 270A OF THE INCOME TAX ACT, 1961 BEARING DIN AND NOTICE NO.ITBA/PNL/S/270A/2025-26/1087021720(1) DATED 06.03.2026 ENCLOSED AS ANNEXURE-R PASSED BY THE 1ST RESPONDENT AND THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 IN DIN AND NOTICE NO. ITBA/PNL/S/271AAC(1)/2025-26/1086964998(1) ENCLOSED AS ANNEXURE-S PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2018-19 ANDH. ISSUE 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 SUBORDINATES, SERVANTS AGENTS, FROM TAKING ANY ACTION FURTHERANCE OF OR CONSEQUENT TO IMPUGNED ASSESSMENT ORDER PASSED UNDER SECTION 147 OF THE INCOME TAX ACT, 1961 DATED ITBA/AST/S/147/2025- 26/1087018357(1) ANNEXURE-N PASSED BY THE 1ST RESPONDENT, THE DEMAND NOTICE ISSUED UNDER SECTION 156 OF THE ACT IN AN ITBA/AST/S/156/2025- 26/1087024160(1) DATED 06.03.2026 ENCLOSED AS ANNEXURE-P PASSED BY THE 1ST RESPONDENT AND PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 DATED ITBA/PNL/S/272A(1)(d)/2025-26/1086964687(1) DATED 06.03.2026 ENCLOSED ANNEXURE-Q PASSED BY THE 1ST RESPONDENT, THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 270A OF THE INCOME TAX ACT, 1961 ITBA/PNL/S/270A/2025-26/1087021720(1) 06.03.2026 ENCLOSED AS ANNEXURE-R PASSED BY THE 1ST RESPONDENT AND THE PENALTY NOTICE ISSUED UNDER SECTION 274 R.W.S 272A(1)(d) OF THE INCOME TAX ACT, 1961 IN DIN AND NOTICE NO. ITBA/PNL/S/271AAC(1)/2025-26/1086964998(1)

ANNEXURE-S ASSESSMENT YEAR 2018-19.

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 petitioner's grievance is with commencement of the proceedings with the issuance of the Show Cause Notice dated 06.08.2024 under Section 148A(b) of the Income Tax Act, 1961 [for short, the Act]. This impugned Show Cause Notice is for Assessment Year 2018-19 sustainability of the Show Cause Notice, and the continuation of the proceedings thereunder is called in question on the short ground of lack of jurisdiction contending that even if the proceedings were to be commenced, the commencement should have been

initiated within the period prescribed under Section 149(1)(a) but this Show Cause Notice is issued on 06.08.2024 that is much after 30.06.2024 when the limitation has expired. Sri Prasanna B M, the learned counsel for the petitioner, and Sri M. Thirumalesh, the learned Senior Standing counsel for the respondents, who is assisted by Sri Nirmal Mathew, a learned Standing counsel, are heard. The undisputed facts are: [a] that the limitation period under section 149(1)(a) of the IT Act [relevant to this Assessment Year 2018-19] expired on 31.03.2022, [b] that notice under section 148A(b) is issued on 06.08.2024 i.e., after the expiry of the regular 3-year limitation. [c] that the alleged income that has escaped assessment is only Rs.

18,00,000 as against the stipulated Rs. 50,00,000/-. As such, this Court is of the view that as inarguably proceedings are barred by limitation, show cause notice, consequentially every order/ notice thereafter, will have to fail. Hence the following ORDER The petition is allowed quashing the Show Cause Notice issued under Section 148A(b) of the Act dated 06.08.2024 [Annexure-A] subsequent proceedings as follows. Sl. No. Description Date Provision Annexure 1. 06.08.2024 Section 148A(b) A 2. Order 30.08.2024 Section 148A(d) B 3. 30.08.2024 Section

C 4. Assessment Order

N 5. Demand

6.

Penalty Notice/s

r/w Section 272A(1)(d) Q and S 7. Penalty Notice/s

r/w Section 270A R

Sd/- (B M SHYAM PRASAD) JUDGE NV

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