THE INCOME TAX OFFICER vs. SMT VASANTHI RAMADAS PAI

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WA/669/2024HC KarnatakaKAHC01024497202422 September 2025Bench: D K SINGH,VENKATESH NAIK T6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, acknowledging the consensus arrived at between the parties, set aside the judgment and order dated February 12, 2024, passed by the learned Single Judge. The matters were remanded back to the Assessing Authority. The Assessing Authority is directed to pass a fresh order under Section 148A(d) of the Income Tax Act, 1961, after considering the reply submitted by the respondent-assessee to the notice issued under Section 148A. Crucially, the Assessing Authority must issue a notice of hearing to the respondent-assessee before passing the fresh order. No specific issue was left undecided; the court facilitated a resolution through remand.

What were the facts?

The Revenue filed two Writ Appeals challenging a common order dated February 12, 2024, passed by a learned Single Judge in two connected Writ Petitions. The Single Judge had quashed an order passed under Section 148A(d) of the Income Tax Act, 1961, and notices issued under Section 148A of the Act to the respondent-assessee. The respondent-assessee in these appeals is Dr. Ramdas Madhava Pai and Smt. Vasanthi Ramadas Pai. The appeals were filed by the Income Tax Officer, Ward 1 and TPS, Udupi, and other revenue authorities.

What were the issues?

1. Whether the learned Single Judge was justified in quashing the order under Section 148A(d) and the notices issued under Section 148A of the Income Tax Act, 1961, against the respondent-assessee? Assessee's Contention: The respondent-assessee sought to be satisfied if the matters were remanded back to the Assessing Authority to consider their detailed reply and to provide an opportunity of hearing before passing a fresh order. Revenue's Contention: The Revenue agreed to the remand of the matters back to the Assessing Authority, stating that the Assessing Authority would consider the assessee's reply and pass a fresh order in accordance with law after giving an opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148A(d)

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WA No. 649 of 2024
WA No. 669 of 2024

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

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE VENKATESH NAIK T WRIT APPEAL NO.649 OF 2024 (T-IT) CONNECTED WITH WRIT APPEAL NO. 669 OF 2024 (T-IT)

IN W.A. No.649/2024:

BETWEEN:

1.

THE INCOME TAX OFFICER WARD 1 AND TPS, UDUPI, AAYAKAR BHAWAN, UDUPI, MALPE ROAD, AMBALPADI POST, UDUPI-576 103.

2.

THE ADDL. COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, ATTAVARA, MANGALURU-575 001.

3.

THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAWAN, PANAJI REGION, PATTO EDC COMPLEX, PANAJI, GOA-403 001.

4.

UNION OF INDIA REPRESENTED THROUGH THE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. APPELLANTS

(BY SRI Y.V. RAVIRAJ & M. DILIP, ADVOCATES)

Digitally signed by MOUNESHWARAPPA NAGARATHNA Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

AND:

DR. RAMDAS MADHAVA PAI AGED ABOUT 88 YEARS, S/O. LATE TMA PAI, RESIDING AT 1, GEETHANJALI, UPENDRA NAGAR, MANIPAL-576 104, REPRESENTED THROUGH A POWER OF ATTORNEY HOLDER, SHRI RAJESH KRISHNASWAMY MOORTI, RESIDING AT NO.908, 20TH MAIN ROAD, BANASHANKARI II STAGE, BENGALURU SOUTH, BENGALURU-560 070. …RESPONDENT

(BY SRI ABRAHAM JOSEPH AND SMT. PARNASHREE BANNERJEE, ADVOCATES) * * *

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, READ WITH ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDER DATED 12-2-2024 PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.8815 OF 2022.

IN W.A. NO.669/2024: BETWEEN:

1.

THE INCOME TAX OFFICER WARD 1 AND TPS, UDUPI, AAYAKAR BHAWAN, UDUPI, MALPE ROAD, AMBALPADI POST, UDUPI-576 103.

2.

THE ADDL. COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, ATTAVARA, MANGALURU-575 001.

3.

THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAWAN, PANJAI REGION, PATTO EDC COMPLEX, PANAJI, GOA-403 001.

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

4.

UNION OF INDIA REPRESENTED THROUGH THE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. APPELLANTS (BY SRI Y.V. RAVIRAJ & M. DILIP, ADVOCATES)

AND:

SMT. VASANTHI RAMADAS PAI AGED ABOUT 80 YEARS, W/O. DR. RAMDAS MADHAVA PAI, RESIDING AT 1, GEETHANJALI, UPENDRA NAGAR, MANIPAL-576 104, REPRESENTED THROUGH A POWER OF ATTORNEY HOLDER, SHRI RAJESH KRISHNASWAMY MOORTI, RESIDING AT NO.908, 20TH MAIN ROAD, BANASHANKARI II STAGE, BENGALURU SOUTH, BENGALURU-560 070. ...RESPONDENT (BY SRI ABRAHAM JOSEPH AND SMT. PARNASHREE BANNERJEE, ADVOCATES)

* * *

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, READ WITH ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO ALLOW THE APPEAL AND SET ASIDE THE ORDER DATED 12-2-2024 PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETITION NO.8797 OF 2022.

THESE WRIT APPEALS ARE COMING ON FOR FURTHER HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE D K SINGH AND HON'BLE MR. JUSTICE VENKATESH NAIK T

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE D K SINGH) The present Writ Appeals have been filed by the Revenue impugning the judgment and order dated 12.02.2024 passed in Writ Petition No.8797 of 2022 (T-IT) connected with Writ Petition No.8815 of 2022 (T-IT). The learned Single Judge has quashed the order under Section 148A(d) of the Income Tax Act, 1961, as well as the notices issued under Section 148A of the Income Tax Act, 1961, to the respondent-assessee. 2. Learned counsel appearing for the respondent- assessee submits that they would be satisfied if the matters are remanded back to the Assessing Authority to consider their detailed reply and before passing a fresh order, give them an opportunity of hearing. 3. Sri Y.V. Raviraj, learned counsel appearing for the Revenue, submits that if this Court remands the matters back to the Assessing Authority, after setting aside the judgment and order passed by the learned Single Judge,

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

the Assessing Authority will consider the reply submitted by the respondent-assessee, and pass a fresh order in accordance with the law, after giving an opportunity of hearing to the respondent-assessee. 4. We have considered the submissions and having regard to the consensus arrived at between the parties at the Bar, we set aside the judgment and order dated 12.02.2024 passed by the learned Single Judge in Writ Petition No.8797 of 2022 (T-IT) connected with Writ Petition No.8815 of 2022 (T-IT) and remand the matters back to the Assessing Authority to pass a fresh order under Section 148A(d) of the Income Tax Act, 1961, after considering the reply submitted by the respondent- assessee to the notice under Section 148A of the Income Tax Act, 1961. 5. It is needless to say that the Assessing Authority shall issue notice of hearing to the respondent-assessee

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HC-KAR NC: 2025:KHC:37950-DB WA No. 649 of 2024 C/W WA No. 669 of 2024

before passing a fresh order under Section 148A(d) of the Income Tax Act, 1961. 6. With the above directions, the present Writ Appeals stand allowed. In view of the disposal of the Writ Appeals, pending interlocutory applications, if any, stand dismissed.

Sd/- (D K SINGH) JUDGE

Sd/- (VENKATESH NAIK T) JUDGE

KVK List No.: 1 Sl No.: 43

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