KANACHUR SEASONING INDUSTRIES vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP/8330/2026HC KarnatakaKAHC01018228202628 July 2026Author: B M SHYAM PRASAD4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court permitted the petitioner to withdraw the writ petition. The petitioner's counsel informed the Court that an appeal had been filed before the ITAT and requested condonation of delay in filing the appeal. The Court, however, held that the question of delay must also be considered by the ITAT. Consequently, the writ petition was disposed of. The Court did not decide on the merits of the assessment, demand, or penalty notices, nor did it rule on the delay in filing the appeal before the ITAT, leaving that to be decided by the Tribunal. The operative direction was to dispose of the writ petition.

What were the facts?

The petitioner, Kanachur Seasoning Industries, filed a writ petition before the High Court of Karnataka challenging several orders passed by the Deputy Commissioner of Income Tax. These orders included a show cause notice dated December 29, 2021, under Section 153C read with Section 153A of the Income Tax Act, 1961, for Assessment Year (AY) 2015-16. The petitioner also challenged the final assessment order dated December 22, 2025, passed under Section 153C read with Section 144C(13) of the Act for AY 2015-16, a demand notice dated December 22, 2025, under Section 156 of the Act for AY 2015-16, and penalty notices dated December 22, 2025, under Section 274 read with Section 271(1)(c) and Section 271AA of the Act for AY 2015-16. The petitioner sought to quash these notices and orders and restrain coercive recovery proceedings.

What were the issues?

The primary issue was whether the High Court should entertain the writ petition challenging the assessment, demand, and penalty notices. The petitioner sought to quash these notices and orders. The petitioner's counsel submitted a memo seeking permission to withdraw the writ petition because the petitioner had preferred an appeal before the Income Tax Appellate Tribunal (ITAT) and requested condonation of delay in filing the appeal. The revenue's contentions are not recorded in the judgment as the matter was disposed of on the petitioner's request for withdrawal.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 144C(13),Section 156,Section 274,Section 271(1)(c),Section 271AA,Section 253

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 8330 OF 2026 (T-IT)

BETWEEN:

KANACHUR SEASONING INDUSTRIES D. NO 2-72/1 N H 17 KALLAPU, P.O. PERMANNUR, MANGALURU - 575 017 REPRESENTED BY ITS PARTNER ULLAL KOJABBA MONU AGED ABOUT 71 YEARS, R/A KANACHUR VILLA, UNIVERSITY ROAD, DERALAKATTE, MANGALORE, KARNATAKA - 575 018 …PETITIONER (BY SRI. PRASANNA B.M., ADVOCATE FOR SRI. BALRAM R RAO.,ADVOCATE)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX -CENTRAL CIRCLE CIRCLE -1, ALBURUERQUE HOUSE, OPPOSITE FORUM MALL, PANDESHWARA, MANGALURU, KARNATAKA - 575001. …RESPONDENT (BY SRI. DILIP M. ,ADVOCATE)

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTITON OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA QUASHING THE SHOW CAUSE NOTICE DATED 29.12.2021 UNDER SECTION 153C READ WITH SECTION 153A OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2015-16 IN DIN ITBA/AST/S/153C/2021-22/ 1038226701(1) ENCLOSED AS ANNEXURE - A TO THIS PETITION. B) QUASHING THE FINAL ASSESSMENT ORDER DATED 22.12.2025 PASSED UNDER SECTION 153C R.W.S 144C(13) OF THE ACT FOR A.Y. 2015-16 IN DIN ITBA / AST / M / 153C / 2025-26 / 1083920258 (1) ENCLOSED AS ANNEXURE-L TO THIS PETITION C) QUASHING THE DEMAND NOTICE DT 22.12.2025 ISSUED UNDER SECTION 156 OF THE ACT FOR AY 2015-16 IN DIN/AST/M/153C/2025-26/1083920258(1) ENCLOSED AS ANX-M TO THIS PETITION WHICH IS ARISING OUT OF THE IMPUGNED ASSESSMENT AND INVALID JURISDICTION. D) QUASHING THE PENALTY NOTICE DATED 22.12.2025 PASSED UNDER SECTION 274 R.W.S 271(1)(C) OF THE ACT FOR A.Y.2015-16 IN DIN AND ORDER NO. ITBA/PNL/M/271(1)(C)/2025- 26/1084270534(1)ENCLOSED AS ANNEXURE N TO THIS PETITION. E) ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION QUASHING THE PENALTY NOTICE DATED 22.12.2025 PASSED UNDER SECTION 274 R.W.S 271AA OF THE

ACT FOR A.Y.2015-16 IN DIN AND ORDER NO.ITBA / PNL / M / 271AA / 2025 -26 / 1084270998(1) ENCLOSED AS ANNEXURE- P TO THIS PETITION. F) ISSUE A WRIT OF PROHIBITION OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION RESTRAINING THE RESPONDENTS, THEIR OFFICERS, SERVANTS AND AGENTS FROM TAKING ANY COERCIVE STEPS FOR RECOVERY PURSUANT TO THE IMPUGNED ASSESSMENT AND DEMAND, PENDING DISPOSAL OF THE PRESENT WRIT PETITION.

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 learned counsel for the petitioner files a Memo, which reads as under: " The Advocate for the Petitioner submits that he may be permitted to withdraw the aforesaid Writ Petition, as the Petitioner has preferred an appeal under section 253 of the Act. It is humbly requested

that, a delay in filing of an appeal before the ITAT may please be condoned. "

In continuation, the learned counsel submits that the petitioner has filed an appeal with the Income Tax Appellate Tribunal (ITAT) and that this Court may condone the delay. However, this Court is of the considered view that the question of delay must also be considered by the ITAT. As such, the petition stands disposed of.

Sd/- (B M SHYAM PRASAD) JUDGE

NV List No.: 1 Sl No.: 0

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