HARISH BABU NEKKUNDI SRINIVASA REDDY vs. INCOME TAX OFFICER

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WP/1060/2024HC KarnatakaKAHC01000871202415 December 2025Bench: S.R.KRISHNA KUMAR7 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the petition. It was an undisputed fact that the petitioner had not submitted a reply to the Section 153C notice. However, considering the petitioner's assertion that his omission was due to bonafide reasons, unavoidable circumstances, sufficient cause, and the COVID-19 pandemic, and that he would submit a reply if granted another opportunity, the Court found it just and appropriate to set aside the impugned order and subsequent notices/orders. The matter was remitted back to the stage of the petitioner submitting a reply to the Section 153C notice. The ratio decidendi is that where an assessee demonstrates sufficient cause for non-compliance with statutory notices, particularly in light of exceptional circumstances like a pandemic, and seeks an opportunity to present their case, the Court may grant such an opportunity by setting aside ex-parte orders and remitting the matter for fresh consideration.

What were the facts?

The petitioner, Harish Babu Nekkundi Srinivasa Reddy, filed a writ petition before the High Court of Karnataka challenging several orders and notices issued by the Income Tax Department for Assessment Year 2015-16. The petitioner's return for AY 2015-16 was found to be not e-verified, rendering it invalid. Consequently, notices under Section 153C and Section 142(1) were issued. The petitioner claims that due to bonafide reasons, unavoidable circumstances, sufficient cause, and the COVID-19 pandemic, he could not submit a reply to these notices. The impugned orders include those passed under Section 153C r.w.s. 144, Section 271F, and Section 271(1)(c) of the Income Tax Act, along with demand notices under Section 156.

What were the issues?

1. Whether the impugned order passed under Section 153C r.w.s. 144 of the Income Tax Act, dated 18.06.2021, and subsequent orders and notices, should be quashed and set aside on the grounds of the petitioner's inability to respond due to bonafide reasons, unavoidable circumstances, sufficient cause, and the COVID-19 pandemic? (Question of law and fact, turning on Section 153C and Section 144). Assessee's Contention: The petitioner argued that his failure to submit a reply to the Section 153C notice was due to bonafide reasons, unavoidable circumstances, sufficient cause, and the COVID-19 pandemic. He contended that the impugned order should be set aside and the matter remitted back to allow him to submit a reply. Revenue's Contention: The revenue argued that there is no merit in the petition and it is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 153C,Section 144,Section 142(1),Section 271F,Section 271(1)(c),Section 156

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 1060 OF 2024 (T-IT) BETWEEN:

HARISH BABU NEKKUNDI SRINIVASA REDDY AGED ABOUT 59 YEARS S./O LATE SRINIVAS REDDY RAMAIAH NEKKUNDI R/AT R SRINIVASA REDDY COLONY DODDANEKUNDI POST BANGALORE 560 037.

…PETITIONER (BY SRI. BALRAM R RAO.,ADVOCATE)

AND:

1.

INCOME TAX OFFICER WARD NO.4(2)(3), BMTC BUILDING 80 FEET ROAD, KORAMANGALA BANGALORE 560 095.

2.

ASSISTATNT COMMISSIONER OF ICOME TAX CENTRAL CIRCLE 2(4) CETRAL REVENUE BUILDING QUEENS ROAD, BENGALORE - 560 001. …RESPONDENTS (BY SRI. M.DILIP, ADVOCATE)

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH THE SET ASIDE THE IMPUGNED ORDER PASSED UNDER SECTION 153C R.W.S. 144 OF THE ACT DATED 18/06/2021 IN DIN AND ORDER NO. ITBA/AST/S/153C/2021- 22/1033545065(1) (ANNEXURE-G) AS WELL AS NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT IN DIN AND NOTICE NO. ITBA/AST/S/156/2021-22/1033545106(1) (ANNEXURE-G1), ORDER PASSED

Digitally signed by CHANDANA B M Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

U/S 271F OF THE ACT DATED 12/02/2022 IN DIN AND ORDER NO. ITBA/PNL/F/271F/2021-22/1039682606(1) (ANNEXURE-N) AS WELL AS NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT IN DIN AND NOTICE NO. ITBA/AST/S/156/2021-22/1039677700(1) (ANNEXURE-N1) AND ORDER PASSED U/S 271(1)(c) OF THE ACT DATED 28/02/2022 IN DIN AND ORDER NO. ITBA/PNL/F/271(1)(c)/2021-22/1040163584(1) (ANNEXURE-P) AS WELL AS NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT IN DIN AND NOTICE NO. ITBA/AST/S/156/2021- 22/1040163432(1) (ANNEXURE-P1) FOR THE ASSESSMENT YEAR 2015-16 AND ETC.

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

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this petition, petitioner seeks the following reliefs:

“ i) Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner's case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under section 153C r.w.s. 144 of the Act dated 18.06.2021 in DIN & Order No: ITBA/AST/S/153C/2021-22/1033545065(1) [ANNEXURE - G] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021- 22/1033545106(1) [ANNEXURE G1], Order passed u/s. 271F of the Act dated 12.02.2022 in DIN & Order No: ITBA/PNL/F/271F/2021-22/1039682606(1) [ANNEXURE - N] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

22/1039677700(1) [ANNEXURE N1] and Order passed u/s. 271(1)(c) of the Act dated 28.02.2022 in DIN & Order No: ITBA/PNL/F/271(1)(c)/2021-22/1040163584(1) [ANNEXURE P] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021- 22/1040163432(1) [ANNEXUR P1] for the Assessment Year 2015-16, and ii) Issue a Writ of Certiorari or a writ in the nature of Certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the records of the Petitioner's case and after examining the legality and validity thereof be pleased to quash and set aside the impugned order passed under section 153C r.w.s. 144 of the Act dated 18.06.2021 in DIN & Order No: ITBA/AST/S/153C/2021-22/1033545065(1) [ANNEXURE - G] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021- 22/1033545106(1) [ANNEXURE G1] for the Assessment Year 2015-16 passed by the Second Respondent,

iii) A Writ of Mandamus or a Writ in the nature of Mandamus, or any other appropriate Writ, Order or Direction under Artic 226 of the Constitution of India ordering and directing t Respondents by themselves, their subordinate, servants agents to withdraw and cancel the impugned order pas under section 153C r.w.s. 144 of the Act dated 18.06.2021 DIN & Order No: ITBA/AST/S/153C/2021- 22/1033545065(1) [ANNEXURE-G] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1033545106(1) [ANNEXURE-

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

G1], Order passed u/s. 271F of the Act dated 12.02.2022 DIN & Order No: ITBA/PNL/F/271F/2021-22/1039682606(1) [ANNEXURE-N] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1039677700(1) [ANNEXURE - N1] and Order passed u/s. 271(1)(c) of the Act dated 28.02.2022 in DIN & Order No: ITBA/PNL/F/271(1)(c)/2021- 22/1040163584(1) [ANNEXURE P] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1040163432(1) [ANNEXURE - P1] for the Assessment Year 2015-16, and

iv. A Writ of Prohibition or a Writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of the Constitution of India prohibiting and restraining the Respondents by themselves, their subordinate, servants and agents from taking any action in furtherance or consequent to impugned order passed under section 153C r.w.s. 144 of the Act dated 18.06.2021 in DIN & Order No: ITBA/AST/S/153C/2021-22/1033545065(1) [ANNEXURE G] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1033545106(1) [ANNEXURE G1], Order passed u/s. 271F of the Act dated 12.02.2022 in DIN & Order No: ITBA/PNL/F/271F/2021-22/1039682606(1) [ANNEXURE N] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1039677700(1) [ANNEXURE - N1] and Order passed u/s. 271(1)(c) of the Act dated 28.02.2022 in DIN & Order No: ITBA/PNL/F/271(1)(c)/2021-

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

22/1040163584(1) [ANNEXURE - P] as well as notice of demand issued under section 156 of the Act in DIN & Notice No. ITBA/AST/S/156/2021-22/1040163432(1) [ANNEXURE - P1] for the Assessment Year 2015-16 and

v. Grant the interim relief in terms of prayer (iii) above, and

vi. Issue such other order, writ or direction as this Hon'ble Court deems fit; and vii. Direct the Respondents to pay the costs of this Writ Petition.”

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3.

A perusal of the material on record will indicate that returns filed by the petitioner for the Assessment year 2015-16 was found not e-verified and the said returns came to be identified as invalid resulting in issuance of notice under Section 153C of the Income Tax Act dated 06.06.2019 followed by the Show Cause Notice under Section 142(1) dated 14.12.2019 issued by the respondent to the petitioner. It is contended that due to bonafide reasons, unavoidable circumstances and sufficient cause and due to Covid-19 pandemic, the petitioner could not submit reply to the aforesaid notice as well as the subsequent notices dated

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

17.11.2020 issued under Section 142(1) of the Income Tax Act and as such, the impugned order dated 18.06.2021 passed by the respondent under Section 153C deserves to be set aside and remit the matter back to the stage of petitioner submitting reply to the notice under Section 153C and proceed further in accordance with law.

4.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

5.

A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 153C notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section 153C notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and Covid-19 pandemic and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – G

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HC-KAR NC: 2025:KHC:53366 WP No. 1060 of 2024

dated 18.06.2021 passed under 153C read with Section 144 of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 153C notice and to proceed further in accordance with law.

6.

In the result, I pass the following: ORDER

(i) The petition is hereby allowed.

(ii) The impugned orders / notices at Annexure – G, G1, N, N1, P and P1 dated 18.06.2021, 18.06.2021, 12.02.2022, 11.02.2022, 28.02.2022 and 28.02.2022, respectively passed by the respondent are hereby set aside.

(iii) Matter is remitted back to the stage of petitioner submitting reply to the Show Cause Notice dated 06.06.2019 under Section 153C of the Income Tax Act and proceed further in accordance with law.

Sd/- (S.R.KRISHNA KUMAR) JUDGE SV

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