SHRI KARGODE CHANDRASHEKAR DAYANANDA vs. THE ASSESSMENT UNIT

- 1 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 19859 OF 2026 (T-IT)

BETWEEN:

SHRI KARGODE CHANDRASHEKAR DAYANANDA SON OF SRI. KM CHANDRASHEKAR, AGED ABOUT 76 YEARS, RESIDING AT NO.1, MAGGE ROAD CHANNAPURA VILLAGE, MAGGE B.O ALUR, HASSAN-573129 KARNATAKA.

…PETITIONER (BY SRI. PRANAY SHARMA Y., ADVOCATE) AND:

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

- 2 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

…RESPONDENTS (BY SRI.M. THIRUMALESH., ADVOCATE)

- 3 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ASSESSMENT ORDER DATED 16.03.2023 PASSED UNDER SECTION 147 R.W.S 144 R.W.S 144B OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2015-16 BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/S/147/2022-23/1050852037(1) HEREIN MARKED AS ANNEXURE-A1; B) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE COMPUTATION SHEET DATED 16.03.2023 BEARING DIN NO. ITBA/AST/S/114/2022-23/1050852284(1) BY THE RESPONDENT NO.1 HEREIN MARKED AS ANNEXURE- A2; C) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE COPY OF THE NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT DATED 16.03.2023 BEARING DIN NO. ITBA/AST/S/156/2022- 23/1050852365(1) BY THE RESPONDENT NO.1 HEREIN MARKED AS ANNEXURE-A3; D) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER OF PENALTY DATED 18.09.2023 PASSED UNDER SECTION 271F OF THE ACT BEARING DIN NO. ITBA/PNL/F/271F/2023- 24/1056190314(1) BY THE RESPONDENT NO. 1 HEREIN MARKED AS ANNEXURE-A4; E) ISSUE A WRIT OF

- 4 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

CERTIORARL OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE COMPUTATION SHEET IN RELATION TO THE PENALTY ORDER PASSED UNDER SECTION 271F OF THE ACT DATED 18.09.2023 BEARING DIN NO.ITBA/PNL/S/271F/2022- 23/1050852161(1) BY THE RESPONDENT NO.1 HEREIN MARKED AS ANNEXURE-A5; F) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT PERTAINING TO PENALTY ORDER DATED 18.09.2023 BEARING DIN NO.ITBA/PNL/S/156/2023-24/1056189982(1) BY THE RESPONDENT NO. 1 HEREIN MARKED AS ANNEXURE- A6; G) 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 19.03.2022 FOR THE ASSESSMENT YEAR 2015-16 BY THE RESPONDENT NO.2 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2021-22/1041024753(1) HEREIN MARKED AS ANNEXURE-B1; H) ISSUE A WRIT OF CERTLORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER PASSED UNDER SECTION 148A(d) OF THE ACT DATED 29.03.2022 BY THE RESPONDENT NO.2 BEARING DIN NO. ITBA/AST/F/148A/2021-22/1041969835(1) HEREIN MARKED AS ANNEXURE-B2; J) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE ISSUED

- 5 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

UNDER SECTION 148 OF THE ACT BY THE RESPONDENT NO.2 DATED 29.03.2022 BEARING DIN NO. ITBA/AST/S/148-1/2021-22/1041970312(1) HEREIN MARKED AS ANNEXURE-B3; J) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE ISSUED UNDER SECTION 226(3) OF THE ACT BY THE RESPONDENT NO.2 TO RESPONDENT NO.6 DATED 10.11.2023 BEARING DIN AND NOTICE NO. ITBA/COM/F/17/2023-24/1057878228(1) HEREIN MARKED AS ANNEXURE-C1; K) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE OF PROCEEDINGS UNDER SECOND SCHEDULE OF THE ACT DATED 12.08.2025 BEARING DIN AND LETTER NO.ITBA/COM/F/17/2025-26/1079519022(1) ISSUED BY THE OFFICE OF THE RESPONDENT NO.2. COPY OF THE NOTICE OF PROCEEDINGS DATED 12.08.2025 IS HEREIN MARKED AS ANNEXURE-C2; K) ALTERNATIVELY DIRECT THE RESPONDENT NO.4 TO CONCLUDE THE PROCEEDINGS WITHIN A PERIOD OF 4 WEEKS FROM THE DATE OF DISPOSAL OF THE PRESENT WRIT PETITION; M) ALTERNATIVELY, REMAND THE MATTER TO THE HANDS OF THE RESPONDENT NO.2 TO ENABLE THE PETITIONER TO PARTICIPATE IN THE PROCEEDINGS.

- 6 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

THIS PETITION, COMING ON FOR ORDERS, 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 the Assessment Order dated 16.03.2023 [Annexure-A1], the computation and the consequential demands including the Demand for Penalty and Interest. Sri Pranay Sharma Y., the learned counsel for the petitioner, and Sri Thirumalesh M., a learned standing counsel who is called upon to accept notice for the respondents, are heard for disposal of the petition.

Sri Pranay Sharma Y submits that because the notice under Section 148-A(d) of the Income Tax Act, 1961 [for short, ‘the IT Act’] is dated 29.03.2022 [Annexure-B2] i.e., beyond 01.04.2021, the entire proceedings must fail. The learned counsel relies

- 7 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

upon, among others, the orders of a Division Bench of this Court in Income Tax Officer v. Venkatala Iyyappa Rajanna in Writ Appeal No.612/2025 [T- IT] [disposed of on 05.08.2025] where the Division Bench has observed thus:

“In addition to the above, it is also relevant to note that the impugned notice was issued in respect of AY 2015-2016. Pursuant to the impugned notice, an order dated 31.03.2022 was passed under Section 148(d) of the Act, holding that it was a fit case for issuance of notice under Section 148 of the Act. The question whether such notices issued in respect of the Assessment Year, 2015-2016 were sustainable was a subject matter of observation by the Supreme Court of India, in Union of India V. Rajiv Bansal. During the said proceedings, it was readily conceded by the Revenue that all such notices issued on or after 01.04.2021 in respect of Assessment Year 2015-2016 were liable to be dropped.”

As the present case would fall squarely within the circumstances in which the proceedings are

- 8 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

dropped earlier, the following order although the petitioner's appeal is pending.

ORDER [A] The petition is allowed and the Assessment Order dated 16.03.2023 [Annexure-A1], the Computation Sheet dated 16.03.2023 [Annexure-A2], the Notice of Demand dated 16.03.2023 [Annexure-A3], the Order of Penalty dated 18.09.2023 [Annexure-A4], the Computation Sheet dated 18.09.2023 [Annexure- A5], the Notice of Demand dated 18.09.2023 [Annexure-A6], the Notice under Section 148A(b) dated 19.03.2022 [Annexure-B1], the Order under Section 148A(d) dated 29.03.2022 [Annexure-B2], the

- 9 -

HC-KAR NC: 2026:KHC:33981 WP No. 19859 of 2026

Notice under Section 148 dated 29.03.2022 [Annexure-B3], the Notice dated 10.11.2023 [Annexure- C1] and the Notice of Proceedings dated 12.08.2025 [Annexure-C2] are quashed. [B] The petitioner’s pending appeal shall consequently be disposed of, and the petitioner is reserved with liberty to file a copy of this Order in the appeal and seek such disposal.

Sd/- (B M SHYAM PRASAD) JUDGE

SA Ct:sr