KANACHUR SEASONING INDUSTRIES vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP/8355/2026HC KarnatakaKAHC01018230202628 July 2026Bench: B M SHYAM PRASAD4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the petitioner to withdraw the writ petition. The court noted that the petitioner had filed an appeal with the Income Tax Appellate Tribunal (ITAT) and requested condonation of delay. However, the High Court was of the considered view that the question of delay in filing the appeal must be considered by the ITAT itself. Therefore, the writ petition was disposed of on this basis, with the operative direction being that the ITAT would consider the delay in the appeal filed before it. No specific findings were made on the merits of the assessment or penalty notices.

What were the facts?

The petitioner, Kanachur Seasoning Industries, filed a writ petition before the High Court of Karnataka challenging a show cause notice dated December 29, 2021, issued under Section 153C read with Section 153A of the Income Tax Act, 1961, for Assessment Year 2016-17. The petitioner also challenged the final assessment order dated December 31, 2025, passed under Section 153C read with Section 144C(13), a demand notice dated December 31, 2025, under Section 156, a penalty notice dated December 31, 2025, under Section 274 read with Section 271AA, and another penalty notice dated December 31, 2025, under Section 274 read with Section 271(1)(c). The petitioner sought to quash these notices and orders and restrain coercive recovery steps.

What were the issues?

The primary issue was whether the petitioner should be permitted to withdraw the writ petition. The petitioner's counsel submitted a memo stating that the petitioner had preferred an appeal before the Income Tax Appellate Tribunal (ITAT) and requested condonation of delay in filing the appeal. The petitioner sought to withdraw the writ petition in light of this appeal. The court had to decide whether to allow the withdrawal and whether to condone the delay in filing the appeal before the ITAT, or if the ITAT should consider the delay. The judgment does not explicitly frame legal questions or record arguments from the respondent Revenue.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

HC-KAR 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. 8355 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 KANCHUR VILLA UNVERSITY ROAD DERALAKATTE MANAGLORE KARNATAKA - 575018 …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 HC-KAR THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT 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 2016-17 IN DIN. ITBA/AST/S/153C/2021-22/1038226709(1) ENCLOSED AS ANNEXURE-A TO THIS PETITION. B) QUASHING THE FINAL ASSESSMENT ORDER DATED 31.12.2025 PASSED UNDER SECTION 153C R.W.S 144C(13) OF THE ACT FOR A.Y. 2016-17 IN DIN. ITBA/ AST/ M/ 153C / 2025-26 /1084267651(1) ENCLOSED AS ANNEXURE-L TO THIS PETITION. C) QUASHING THE DEMAND NOTICE DTD 31.12.2025 ISSUED UNDER SECTION 156 OF THE ACT FOR A.Y 2016-17 IN DIN. ITBA/AST/S/156/2025-26/1084267890(1) ENCLOSED AS ANNEXURE M TO THIS PETITION WHICH IS ARISING OUT OF THE IMPUGNED ASSESSMENT AND INVALID JURISDICTION. D) QUASHING THE PENALTY NOTICE DATED 31.12.2025 PASSED UNDER SECTION 274 R.W.S 271AA OF THE ACT FOR A.Y.2016-17 IN DIN AND ORDER NO.ITBA/PNL/S/271AA/2025-26/1084272151 (1) ENCLOSED AS ANNEXURE - N TO THIS PETITION. E) QUASHING THE PENALTY NOTICE DATED 31.12.2025 PASSED UNDER SECTION 274 R.W.S 271(1)(C) OF THE ACT FOR A.Y.2016-17 IN DIN AND ORDER NO.ITBA / PNL / S / 271 (1)(C) /2025-26/1084267937(1)

HC-KAR ENCLOSED AS ANNEXURE-P TO THIS PETITION. F) DIRECT 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 HC-KAR 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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