URBAN RESERVES INDIA PRIVATE LIMITED vs. THE INCOME TAX OFFICER

PDF · subscribers
WP/12389/2024HC KarnatakaKAHC01025988202431 October 2025Bench: S.R.KRISHNA KUMAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that a perusal of the impugned order indicated that while the petitioner had filed its reply dated April 5, 2024, to the notice dated March 31, 2024, the respondent had not properly considered this reply before passing the impugned order dated April 16, 2024. Consequently, the Court found the impugned notices and proceedings culminating in the order to be violative of the principles of natural justice. Adopting a justice-oriented approach, the Court set aside the impugned order and notice. The matter was remitted back to the respondent for reconsideration from the stage of considering the petitioner's reply dated April 5, 2024, to the show cause notice issued under Section 148A(b). Liberty was granted to the petitioner to submit further replies. The ratio decidendi is that failure to consider a taxpayer's reply to a show cause notice before passing an order under Section 148A(d) violates principles of natural justice, necessitating a remand.

What were the facts?

The petitioner, Urban Reserves India Private Limited, filed a writ petition before the High Court of Karnataka challenging a show cause notice issued under Section 148A(b) of the Income Tax Act, 1961, dated March 31, 2024, for Assessment Year 2020-21. The petitioner had filed a reply to this notice on April 5, 2024. Subsequently, the respondent Income Tax Officer passed an order under Section 148A(d) on April 16, 2024, and a notice under Section 148 on the same date. The petitioner contended that the respondent failed to properly consider their reply dated April 5, 2024, thereby violating principles of natural justice. The respondent argued that the petition lacked merit.

What were the issues?

1. Whether the order passed under Section 148A(d) of the Income Tax Act, 1961, is liable to be quashed for failure to properly consider the petitioner's reply dated April 5, 2024, thereby violating principles of natural justice? Assessee's Contention: The petitioner argued that the respondent did not properly consider the reply dated April 5, 2024, filed in response to the show cause notice issued under Section 148A(b), leading to a violation of the principles of natural justice. They relied on the material on record and their reply to support this claim. Revenue's Contention: The respondent-revenue submitted that there is no merit in the petition and that it is liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 148A(b),Section 148A(d),Section 148

AI-generated summary — verify with the full judgment below

- 1 -

HC-KAR NC: 2025:KHC:44212 WP No. 12389 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 31ST DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12389 OF 2024 (T-IT) BETWEEN:

URBAN RESERVES INDIA PRIVATE LIMITED NO. 806, 8TH FLOOR, PRESTIGE TOWERS, 99 AND 100 RESIDENCY ROAD, BANGALORE – 560 052 NATURE OF BUSINESS: CONSTRUCTION OF BUILDINGS, BUYING AND SELLING AND LEASE CERTIFICATE NO. U4520KA2005PTC037360 REPRESENTED BY ITS DIRECTOR SRI. SURESH MANOHAR HEMDEV AGED ABOUT 52 YEARS SON OF SRI. MANOHAR PRABHUDAS HEMDEV PAN NO. AAACU7821N …PETITIONER (BY SRI. S. PARTHASARATHI, ADVOCATE)

AND:

THE INCOME TAX OFFICER WARD-7(1)(1) INCOME-TAX DEPARTMENT BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU, KARNATAKA – 560 095 …RESPONDENT (BY SRI. Y.V. RAVIRAJ, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW CAUSE NOTICE ISSUED U/S 148A(b) OF THE ACT IN FILE NO. ITBA/AST/F/148A(SCN)2023-24/1063752416(1) DATED 31/03/2024 BY THE

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

- 2 -

HC-KAR NC: 2025:KHC:44212 WP No. 12389 of 2024

RESPONDENT FOR THE ASSESSMENT YEAR 2020-21 (ANNEXURE-B) 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 for the following reliefs:- “a) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the show cause notice issued u/s.148A(b) of the Act in File No.ITBA/AST/F/148A(SCN)2023-24/1063752416(1) dt. 31.03.2024 by the Respondent for the assessment year 2020-21 (ΑΝΝEXURE-`B'); b) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the order passed u/s.148A(d) of the Act in File No. ITBA/AST/F/148A/ 2024-25/1064139030(1), dt.16.04.2024 by the Respondent for the assessment year 2020-21 (ANNEXURE-`D'); c) issue a Writ of Certiorari or a direction in the nature of Writ of Certiorari quashing the notice passed u/s.148 of the Act in File No.ITBA/AST/S/148_1/2024- 25/1064139373(1) dt.16.04.2024 by the Respondent for the assessment year 2020-21 (ANNEXURE-`E');”

2.

Heard learned counsel for the parties and perused the material on record.

- 3 -

HC-KAR NC: 2025:KHC:44212 WP No. 12389 of 2024

3.

In addition to reiterating various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner invited my attention to the reply dated 05.04.2024 at Annexure-C to point out that pursuant to the show-cause notice dated 31.03.2024 at Annexure-B issued by the respondent under section 148A(b) of the Income Tax Act, the petitioner filed the aforesaid reply to the said show-cause notice. Further, the respondent passed an order dated 16.04.2024 under section 148A(d) of the I.T. Act. The counsel for the petitioner pointed out to the impugned order dated 16.04.2024, in order to show that the respondent did not properly consider the reply dated 05.04.2024 filed by the petitioner and proceeded to pass the impugned order thereby violating principles of natural justice and as such, the petitioner is before this Court by way of present petition.

4.

Per contra, learned counsel for the respondent-revenue 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 the petitioner filed its reply dated 05.04.2024 to the notice issued by

- 4 -

HC-KAR NC: 2025:KHC:44212 WP No. 12389 of 2024

the petitioner dated 31.03.2024. It is also borne out from the impugned order dated 16.04.2024 that the respondent has not properly considered the reply dated 05.04.2024 filed by the petitioner and has proceeded to pass the impugned order. Under these circumstances, I am of the considered opinion that the impugned notices and proceedings culminating in the impugned order is violative of principles of natural justice and consequently, the impugned order deserves to be set aside by adopting justice oriented approach and by directing the respondent to consider the reply dated 05.04.2024 filed by the petitioner and thereafter proceed further in accordance with law.

6.

In the result, I pass the following:- ORDER

(i) The petition is hereby allowed.

(ii) The impugned order at Annexure-D dated 16.04.2024 and the impugned notice at Annexure-E dated 16.04.2024 passed / issued by the respondent are hereby set aside.

(iii) The matter is remitted back to the respondent for reconsideration afresh in accordance with law from the stage of considering the reply dated 05.04.2024 filed by the petitioner to the

- 5 -

HC-KAR NC: 2025:KHC:44212 WP No. 12389 of 2024

show-cause notice dated 31.03.2024 issued under Section 148A(b) of the Income Tax Act. (iv) Liberty is reserved in favour of the petitioner to submit his reply/additional reply along with the documents to the respondent, who shall consider the same and proceed further in accordance with law.

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

BMC List No.: 2 Sl No.: 23

More judgments on Section 148A(b)

All 524 judgments and leading authorities on Section 148A(b) →

Recent GST High Court judgments

Search GST case law →