NATIONAL EDUCATION FOUNDATION vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP/11127/2023HC KarnatakaKAHC01025860202328 August 2025Bench: M.NAGAPRASANNA5 pages
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What did the High Court hold?

The High Court of Karnataka held that the impugned show cause notice issued by the jurisdictional Assessing Officer was indeed outside the scope of Section 151A of the Income Tax Act, 1961. Consequently, all further proceedings initiated based on this notice, which were challenged in the writ petition, were quashed. The court reasoned that the issue was similar to that decided in a previous writ petition (W.P.No.28182/2024 and connected matters) and therefore, the same reasoning applied. The court also granted liberty to the respondents (revenue) to revive the petition if the Apex Court rules in their favor in a matter pending before it. Contentions of both parties, except for the issue noted regarding Section 151A, were left open to be considered if the petition were to be revived.

What were the facts?

The petitioner, National Education Foundation, filed a writ petition before the High Court of Karnataka challenging notices and an order issued by the Assistant Commissioner of Income Tax (ACIT) for Assessment Year 2016-17. The challenged actions include a notice under Section 148A(b) dated March 28, 2023, an order under Section 148A(d) dated May 4, 2023, and a notice under Section 148 dated May 4, 2023. The petitioner sought to quash these notices and the order. The High Court noted that the grounds raised in this petition were identical to those considered in a previous writ petition, W.P.No.28182/2024 and connected matters, which was disposed of on August 28, 2025.

What were the issues?

1. Whether the show cause notice issued by the jurisdictional Assessing Officer was outside the scope of Section 151A of the Income Tax Act, 1961, and consequently, whether all further proceedings initiated pursuant to it should be quashed. The petitioner's contention, implied by the relief sought and the court's eventual order, is that the notice and subsequent proceedings were vitiated by being outside the purview of Section 151A. The revenue's arguments are not explicitly recorded in the provided text, but their participation as respondents indicates a defense of the notices and order issued. 2. Whether liberty should be reserved for the revenue to revive the petition in the event of a favorable decision from the Apex Court in a pending matter. This is a procedural issue raised by the court itself in its order, allowing for potential future action by the revenue.

Which sections of the Income-tax Act were involved?

Section 151A,Section 148A,Section 148

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:34183 WP No. 11127 of 2023

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 11127 OF 2023 (T-IT)

BETWEEN:

NATIONAL EDUCATION FOUNDATION REPRESENTED BY ITS ADDITIONAL SECRETARY TRUSTEE, SRI.VENKATAPPA, S/O SRI.GIRIYAPPA, AGED ABOUT 76 YEARS, OFFICE AT NO.152, GLOBAL ACADEMY OF TECHNOLOGY, IDEA HOMES TOWNSHIP, RAJARAJESHWARINAGAR, BENGALURU-560 098. PAN.AAATN2782J

(SENIOR CITIZENSHIP NOT CLAIMED) …PETITIONER

(BY SRI. ANNAMALAI S, ADVOCATE)

AND:

1.

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(4), CENTRAL REVENUE BUILDING, NO.1, QUEENS ROAD, BANGALORE - 560 001.

Digitally signed by NAGAVENI Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC:34183 WP No. 11127 of 2023

2.

THE DIRCTOR GENERAL OF INCOME TAX (INVESTIGATION), CENTRAL REVENUE BUILDING, NO.1, QUEENS ROAD, BANGALORE-560 001.

…RESPONDENTS (BY SRI. SUSHAL TIWARI, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE ISSUED U/S 148A(b) OF THE ACT DT. 28.03.2023 BEARING DIN AND LETTER NO. ITBA/AST/F/148A(SCN)/2022-23/1051469728(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNEXURE-A1; QUASH THE ORDER DT. 04.05.2023 PASSED U/S 148A(d) OF THE ACT BEARING DIN AND ORDER NO.ITBA/AST/F/148A/2023-24/1052609848(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNEXURE-A2 AND QUASH THE NOTICE DT. 04.05.2023 ISSUED U/S 148 OF THE ACT BEARING DIN AND NOTICE NO. ITBA/AST/S/148_1/2023- 24/1052609928(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNEXURE-A3.

THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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HC-KAR NC: 2025:KHC:34183 WP No. 11127 of 2023

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

The petitioner is before this Court seeking the following prayers: “i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under section 148A(b) of the Act dated 28/03/2023 bearing DIN & Letter No. ITBA/AST/F/148A(SCN)/2022- 23/1051469728(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A1. ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 04/05/2023 passed under section 148A(d) of the Act bearing DIN & Order No.ITBA/AST/F/148A/2023- 24/1052609848(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A2. iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice dated 04/05/2023 issued under section 148 of the Act bearing DIN & Notice No.ITBA/AST/S/148_1/2023- 24/1052609928(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A3. iv) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity.”

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HC-KAR NC: 2025:KHC:34183 WP No. 11127 of 2023

2.

Heard Sri.Annamalai S, learned counsel for the petitioner, Sri.Sushal Tiwari, learned counsel for the respondents.

3.

The grounds projected in the subject petition in support of the prayers quoted supra are identical to the ones considered by this Court in W.P.No.28182/2024 and connected matters, disposed on 28.08.2025.

4.

In the light of the issue being similar and the reasons rendered therein becomes applicable to the case at hand, the petition deserves to be disposed on the same lines. Therefore, I pass the following: ORDER

(i) The impugned show cause notice issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in this petition would stand quashed.

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HC-KAR NC: 2025:KHC:34183 WP No. 11127 of 2023

(ii) Liberty is reserved to the respondents - revenue to revive the petition in the event, the Apex Court would hold in favour of the Revenue in the matter pending before it.

(iii) With the aforesaid liberty and to the aforesaid extent, the petition is allowed.

(iv) Contentions of both the parties except the one noted hereinabove, shall remain open to be considered in the event revival of this petition would become necessary.

Sd/- (M.NAGAPRASANNA) JUDGE

CBC List No.: 1 Sl No.: 339 ct.sm

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