AMBICA PRAVEESH vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP/12398/2025HC KarnatakaKAHC01027896202514 August 2025Bench: M.NAGAPRASANNA8 pages
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What did the High Court hold?

The High Court allowed the writ petition. It held that since the proceedings were ex-parte and in violation of the principles of natural justice, all further actions taken pursuant to the ex-parte assessment order would be unsustainable. The Court quashed the assessment order dated 01.02.2024 and all subsequent actions taken on its strength. The matter was remitted back to the Assessing Officer (Respondent No.3) to restart the process from the stage of issuing a notice under Section 143(2) of the Act. The Assessing Officer was directed to regulate the procedure and take the issue to its logical conclusion. The petitioner was granted liberty to submit her reply to the notice that would be issued under Section 143(2) of the Act concerning the assessment order/tax period under challenge.

What were the facts?

The petitioner, Ambica Praveesh, is an assessee who filed a writ petition before the High Court of Karnataka challenging various notices and orders issued by the Income Tax Department for Assessment Year 2022-23. The primary challenge was to a notice under Section 143(2) dated 01/06/2023, followed by an assessment order dated 01/02/2024, and subsequent demand notices and penalty orders. The petitioner contended that the assessment proceedings were ex-parte and in violation of the principles of natural justice, as no notice was issued for her appearance. The Revenue, through its counsel, admitted that the proceedings were indeed ex-parte and that no notice was issued to the petitioner seeking her reply.

What were the issues?

1. Whether the notice under Section 143(2) of the Income Tax Act, 1961, and all consequential orders, including the assessment order dated 01/02/2024, are liable to be quashed on the ground that the proceedings were ex-parte and violative of the principles of natural justice? Assessee's Contention: The petitioner argued that the proceedings before the Assessing Officer were ex-parte. She specifically stated that no notice was issued under Section 143(2) of the Act for her appearance. Consequently, she sought for the matter to be remitted back to the Assessing Officer to redo the exercise from the stage of issuing a notice under Section 143(2), with all further proceedings being obliterated due to the violation of natural justice. Revenue's Contention: The learned counsel for the respondent admitted that the proceedings were ex-parte and that no notice was issued to the petitioner seeking her reply. The Revenue agreed that the matter may be remitted back to the Assessing Officer, directing him to follow the procedure from the stage of issuing a notice under Section 143(2) and allowing the petitioner to file her reply.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 144,Section 144B,Section 156,Section 270A,Section 271AAC(1),Section 272A(1)(d)

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 12398 OF 2025 (T-IT)

BETWEEN:

AMBICA PRAVEESH W/O SRI PRAVEESH KUZHIPALLY AGED ABOUT 45 YEARS SHOP NO. 909, NO. 84 BARTON CENTRE, MG ROAD BENGALURU – 560 001.

PRESENTLY RESIDING AT NO. 74/75 'LEELAYAM' 4TH CROSS, MLA LAYOUT DOLLORS COLONY RMV EXTENSION, II STAGE BENGALURU – 560 094. …PETITIONER (BY SRI ABHIJITH S., ADVOCATE)

AND:

1.

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1)(1) BENGALURU THE JURISDICTIONAL ASSESSING OFFICER UNDER THE INCOME TAX ACT, 1961 BMTC BUILDING, 80 FEET ROAD

Digitally signed by NAGAVENI Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560 095.

2.

NATION FACELESS ASSESSMENT CENTRE A CENTRE DESCRIBED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM DELHI - 110 003. REP. BY PR. CHIEF COMMISSIONER OF INCOME TAX (NEAC).

3.

ASSESSMENT UNIT A UNIT CREATED UNDER SECTION 144B OF THE INCOME TAX ACT, 1961 ROOM NO. 401, 2ND FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM DELHI - 110 003. REP. BY PR. CHIEF COMMISSIONER OF INCOME TAX (NEAC).

4.

PRINCIPAL COMMISSIONER OF INCOME TAX BENGALURU-1, AN AUTHORITY UNDER THE INCOME TAX ACT, 1961 BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU – 560 095.

5.

NATIONAL FACELESS APPEAL CENTRE (NFAC) THE APPELLATE AUTHORITY UNDER THE INCOME TAX ACT, 1961 ROOM NO. 401, 'C' BLOCK CIVIC CENTRE, DELHI – 110 002 REP. BY PR. CHIEF COMMISSIONER OF INCOME TAX (NEAC).

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

…RESPONDENTS (BY SRI M.DILIP, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA ISSUE A WRIT OF CERTIORARI OR ANY OTHER SUITABLE WRIT FOR QUASHING OF THE DIGITALLY SIGNED AND ELECTRONICALLY COMMUNICATED NOTICE UNDER SECTION 143(2) OF THE INCOME-TAX ACT, 1961 DATED 01/06/2023 ISSUED BY THE RESPONDENT NO. 3 FOR THE ASSESSMENT YEAR 2022-23 WHICH BEARS THE DIN VIZ., ITBS/AST/F/143(2)/2023-24/1053440746(1) AND ENCLOSED AS ANNEXURE C.

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

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER The petitioner is before this Court seeking the following prayer: “a. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 143(2) of the Income-tax Act, 1961 dated 01/06/2023 issued by the Respondent No. 3 for the Assessment Year 2022- 23 which bears the DIN viz., ITBS/AST/F/143(2)/2023-24/1053440746(1) and enclosed as Annexure C.

b. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated assessment order under section 144 r.w.s 144B of the Income Tax Act, 1961 dated 01/02/2024 passed by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz.,

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

ITBA/AST/S/144/2023-24/1060394393(1) and enclosed as Annexure H1.

c. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 01/02/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz. ITBA/AST/S/156/2023-24/1060394486(1) and enclosed as Annexure H2.

d. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated computation sheet dated 01/02/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz., ITBS/AST/S/330/2023-24/1060394516(1) and enclosed as Annexure H3.

e. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated order under section 272A(1)(d) of the Income-tax Act, 1961 dated 18/06/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/PNL/F/272A(1)(d)/2024-25/1065704818(1) and enclosed as Annexure J1.

f. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 18/06/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz. ITBA/PNL/S/156/2024-25/1065701650(1) and enclosed as Annexure J2.

g. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated order under section 271AAC(1) of the Income-tax Act, 1961 dated 22/08/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz.,

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

ITBA/PNL/F/271AAC(1)/2024-25/1067849062(1) and enclosed as Annexure K1.

h. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 22/08/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz. ITBA/PNL/S/156/2024-25/1067845870(1) and enclosed as Annexure K2.

i. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated order under section 270A of the Income-tax Act, 1961 dated 22/08/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz., ITBA/PNL/F/270A/2024- 25/1067963733(1) and enclosed as Annexure L1.

j. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 22/08/2024 issued by the Respondent No. 3 for the Assessment Year 2022-23 which bears the DIN viz. ITBA/PNL/S/156/2024-25/1067963957(1) and enclosed as Annexure L2.

k. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to COST OF THIS PETITION.”

2.

Heard Sri Abhijith S. Bapu, learned counsel for the petitioner and Sri M. Dilip, learned counsel for the respondent. 3. A petitioner calls in question a notice under Section 143(2) of the Income Tax Act, 1961 (for short ‘the Act’), dated

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

01.06.2023, issued by the third respondent and all consequential orders, which culminate in an assessment order dated 01.02.2024. The subsequent actions of issuance of demand is made pursuant to the assessment orders quoted, which are also impugned in the petition. 4. The petitioner is an assessee. A notice under Section 143(2) of the Act is issued by the respondent - Revenue, by which the income tax returns of the petitioner was taken up for scrutiny assessment and further proceedings are drawn. This results in the assessment order dated 01.02.2024 determining certain penalty to be paid. 5. Learned counsel for the petitioner takes this Court through the documents appended to the petition to demonstrate that the proceedings before the Assessing Officer were ex-parte. The order of assessment would indicate that the petitioner has not appeared, as no notice is issued under Section 143(2) of the Act, for such appearance of the petitioner. Learned counsel for the petitioner submits that since the proceedings are ex parte, the matter be remitted back to the hands of the Assessing Officer, to redo the exercise

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

from the stage of issuance of a notice under Section 143(2) of the Act, and all further proceedings be obliterated, in the light of the admitted fact that the proceedings are in violation of principles of natural justice as it is an ex parte proceedings. 6. Learned counsel appearing for the respondent would admit that the proceedings were indeed ex parte and no notice is issued to the petitioner seeking his reply to the notice and therefore, the matter may be remitted back to the hands of the Assessing Officer, directing him to follow the procedure from the stage of issuance of notice under Section 143(2) of the Act. He would submit that the petitioner be permitted to file his reply to the notice and the Assessing Officer be directed to regulate the procedure to take the issue to its logical conclusion. 7. In the light of the proceedings being ex parte, all further actions taken pursuant to the ex parte assessment order would be unsustainable as they are in violation of principles of natural justice. Therefore, in the light of the aforesaid reasons, the following:

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HC-KAR NC: 2025:KHC:31508 WP No. 12398 of 2025

ORDER a. The writ petition is allowed. b. The assessment order dated 01.02.2024 stands quashed. c. All subsequent actions taken on the strength of the assessment order are also to be obliterated. d. The matter is remitted back to the hands of respondent No.3 - the Assessing Officer of the Assessment Unit to restart the process from the stage of issuance of notice under Section 143(2) of the Act and respondent No.3 shall regulate the procedure and take the issue to its logical conclusion. e. The petitioner is at liberty to submit his reply to the notice that would be issued under Section 143(2) of the Act, qua the challenge raised to the assessment order / tax period indicated in the subject petition.

Ordered accordingly.

SD/- (M.NAGAPRASANNA) JUDGE

NVJ List No.: 1 Sl No.: 17/CT:SS

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