SADASHIVANAGAR YOUTH ASSOCIATION vs. INCOME TAX OFFICER

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WP/13055/2025HC KarnatakaKAHC01023998202505 June 2025Bench: B M SHYAM PRASAD11 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed the petitions in part. It quashed the impugned Assessment Orders, Notices under Section 148A(d), 144 read with Section 144B, and the Notices under Section 226(3) of the IT Act for both Assessment Years 2018-19 and 2020-21. The court reasoned that the petitioner's grievance of not being served with mandatory notices, similar to the issue in a previous writ petition (WP No. 10973/2025), warranted relief. The petitioner was granted liberty to file a response to the notices under Section 148A(b) of the IT Act by June 30, 2025. The respondents were directed to consider this response and pass fresh orders. The court explicitly stated that the petitioner would not be entitled to raise the ground of limitation and that no opinion was rendered on the question of jurisdiction, with all aspects to be considered afresh. The operative direction was to quash the impugned orders and notices, subject to the petitioner filing a response within the stipulated time.

What were the facts?

The petitioner, Sadashivanagar Youth Association, filed two writ petitions before the High Court of Karnataka challenging various orders and notices issued by the Income Tax Department. WP No. 13055/2025 pertains to Assessment Year 2020-21 and challenges orders under Sections 147, 144, 144B, 156, and 226(3) of the Income Tax Act, 1961. WP No. 15078/2025 concerns Assessment Year 2018-19 and challenges orders under Sections 148A(d), 148, 147, 156, 272A(1)(d), 270A, and notices under Section 226(3). The petitioner contended that they were not served with necessary notices, preventing them from responding. A previous writ petition (WP No. 10973/2025) for AY 2017-18 was disposed of on similar grounds, with the court noting the non-service of a Section 142(1) notice.

What were the issues?

1. Whether the assessment orders and consequential notices issued under Sections 147, 144, 144B, 156, and 226(3) of the Income Tax Act, 1961, for Assessment Years 2018-19 and 2020-21, are liable to be quashed on the grounds of non-service of mandatory notices on the petitioner? Assessee's Contention: The petitioner argued that they were not served with crucial notices, specifically under Section 148A(b) of the IT Act, which prevented them from filing their response and participating in the assessment proceedings. This lack of opportunity vitiates the subsequent assessment and demand notices. Revenue's Contention: The judgment does not explicitly record the revenue's arguments. However, the court's decision implies that the revenue's actions were based on proceedings where the petitioner claimed lack of notice.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 156,Section 226(3),Section 148A,Section 148,Section 142(1),Section 272A(1)(d),Section 270A

AI-generated summary — verify with the full judgment below

Heard together (2 matters)

WP No. 13055 of 2025
WP No. 15078 of 2025

Read from the judgment's own cause title. This page is filed under one of them.

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 13055 OF 2025 (T-IT) C/W WRIT PETITION NO. 15078 OF 2025 (T-IT)

IN WP No. 13055/2025 BETWEEN:

SADASHIVANAGAR YOUTH ASSOCIATION 30/A, 8TH A MAIN RAJMAHAL VILAS, REPRESENTED BY ITS PRESIDENT SADASHIVANAGAR S.O BANGALORE - 560080. REPRESENTED BY ITS PRESIDENT MR. W.P. SHIVAKUMAR, AGED ABOUT 68 YEARS,

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

1.

INCOME TAX OFFICER WARD 6(3)(1), BANGALORE BMTC BUILDING, KORAMANGALA, BENGALURU-560095.

2.

ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX,

Digitally signed by VANAMALA N Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI II FLOOR E-RAMP JAWAHARLAL NEHRU STADIUM DELHI 110003

3.

BANK OF INDIA SANJAY NAGAR BRANCH BENGALURU 560 094 …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE FOR R1 AND R2)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE IMPUGNED ORDER PASSED UNDER SECTION 147 R.W.S.144 R.W.S 144B OF THE ACT DATED 02.01.2025 IN DIN AND ORDER NO.ITBA/AST/S/147/2024-25/1071823250(1) (ANNEXURE-L) AS WELL AS NOTICE OF DEMAND NOTICE DATED 02.01.2025 ISSUED UNDER SECTION 156 OF THE ACTIN DIN AND NOTICE NO.ITBA/AST/S/156/2024-25/1071824142(1) (ANNEXURE-L1) PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2020-21 AS WELL AS THE NOTICE ISSUED UNDER SECTION 226(3) OF THE ACT, DATED 10.03.2025 IN DIN AND NOTICE NO.ITBA/RVC/S/226(3) 1/2024-25/1074262052, (ANNEXURE-M) PASSED BY THE 1ST RESPONDENT FOR THE ASSESSMENT YEAR 2020-21 AND ETC.,

IN WP NO. 15078/2025 BETWEEN: 1. SADASHIVANAGAR YOUTH ASSOCIATION REGD PREVIOUSLY AT- 30/A, 8TH MAIN RAJMAHAL VILLAS, SADASHIVANAGAR S.O

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

BANGALORE-560080, KARNATAKA PRESENTLY AT- CA SITE, SRI PRASANNA GANAPATHI SANNIDHI, 15TH CROSS, 8TH MAIN, SADASHIVANAGAR, BANGALORE-560080, KARNATAKA. REPRESENTED BY ITS PRESIDENT- MR. W.P. SHIVAKUMAR, AGED ABOUT- 68 YEARS,

...PETITIONER (BY SRI. BALRAM R RAO.,ADVOCATE) AND: 1. INCOME TAX OFFICER WARD 6(3)(1), BANGALORE BMTC BUILDING, KORAMANGALA, BENGALURU-560095.

2.

ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI, II FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003.

3.

THE MANAGER, UNION BANK OF INDIA, NO. 163, 9TH MAIN, 3RD CROSS, RAJAMAHAL VILAS EXTENSION, BANGALORE -560 080

4.

THE MANAGER, BANK OF INDIA, NOS. 1 AND24, RAGHOTHAMAN SMARAKA SAHAKARA KENDRA, RMS COLONY,

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

SANJAYANAGARA, BANGALORE 560094 ...RESPONDENTS (BY SRI. M. DILIP, ADVOCATE FOR R1 AND R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SET ASIDE THE IMPUGNED COMPUTATION SHEET IN DIN AND NOTICE NO. ITABA/AST/S/185/2022-23/1051692985(1), DATED 30.03.2023 (ANNEXURE-E) AS WELL AS NOTICE OF DEMAND DATED 30.03.2023 ISSUED UNDER SECTION 156 OF THE ACT IN DIN AND NOTICE NO. ITBA/AST/S/156/2022-23/1051692890(1) DATED 30.03.2023 (ANNEXURE-F) PASSED BY THE 1ST RESPONDENT AS WELL AS IMPUGNED PENALTY ORDER PASSED UNDER SECTION 272A(1)(d) AND 270A OF THE ACT, IN DIN AND NOTICE NO. ITBA/PNL/F/272A(1)(d)/2023-24/1055532780(1) ITBA/PNL/F/270A/2023-24/1056490105(1) DATED 28.08.2023 AND 25.09.2023 (ANNEXURE-G) AND (ANNEXURE-H) PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2018-19DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA ORDERING AND DIRECTING THE RESPONDENTS BY THEMSELVES, THEIR SUBORDINATE, SERVANTS AND AGENTS TO WITHDRAW AND CANCEL THE IMPUGNED COMPUTATION SHEET IN DIN AND NOTICE NO. ITABA/AST/S/185/2022-23/1051692985(1), DATED 30.03.2023 (ANNEXURE-E) AS WELL AS NOTICE OF DEMAND DATED 30.03.2023 ISSUED UNDER SECTION 156 OF THE ACT IN DIN AND NOTICE NO. ITBA/AST/S/156/2022-23/1051692890(1) DATED

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

30.03.2023 (ANNEXURE-F) PASSED BY THE 1ST RESPONDENT AS WELL AS IMPUGNED PENALTY ORDER PASSED UNDER SECTION 272A(1)(d) AND 270A OF THE ACT, IN DIN AND NOTICE NO. ITBA/PNL/F/272A(1)(d)/2023-24/1055532780(1) AND ITBA/PNL/F/270A/2023-24/1056490105(1) DATED 28.08.2023 AND 25.09.2023 (ANNEXURE-G) AND (ANNEXURE-H) PASSED BY THE 2ND RESPONDENT FOR THE ASSESSMENT YEAR 2018- 19.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 ATTACHMENT NOTICES ISSUED UNDER SECTION 226(3) OF THE ACT TO THE 3RD TO 5TH RESPONDENT BANKS IN DIN AND NOTICE NO. ITBA/RCV/S/226(3)-1/2024-25/1074167915(1) (ANNEXURE-J), DIN AND NOTICE NO. ITBA/RCV/S/226(3)-1/2024-25/1074168030(1) (ANNEXURE-J1), DIN AND NOTICE NO. ITBA/ RCV/ S/226(3)-1/2024-25/1074261712(1) (ANNEXURE- J2) AND DIN AND NOTICE NO. ITBA/RCV/S/226(3)- 1/2024-25/1074262052(1) (ANNEXURE- J3).DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ATTACHMENT NOTICES ISSUED UNDER SECTION 226(3) OF THE ACT TO THE 3RD TO 5TH RESPONDENT BANKS IN DIN AND NOTICE NO. ITBA/RCV/S/226(3)-1/2024-25/1074167915(1)

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

(ANNEXURE-J), DIN AND NOTICE NO. ITBA/RCV/S/226(3)-1/2024-25/1074168030(1) (ANNEXURE-J1), DIN AND NOTICE NO. ITBA/RCV/S/226(3)-1/2024-25/1074261712(1) (ANNEXURE-J2) AND DIN AND NOTICE NO. ITBA/ RCV/S/226(3)-1/2024-25/1074262052(1) (ANNEXURE-J3) FOR ASSESSMENT YEARS 2017-18, 2018-19, 2019-20 AND 2020-21.

THESE PETITIONS, 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 petitioner has called in question the Assessment Orders and the preceding Orders under Section 148A(d) of the Income Tax Act, 1961 [for short, 'the IT Act'] while also calling in question the Notices under Section 226(3) thereof. The impugned orders are for the Assessment Years 2018-19 and 2020-21. The details of the relevant impugned Order/Notices are as follows:

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

IN W.P.No.13055/2025 [a] Order dated 17.03.2024 under Section 148A(d) of the Act [Annexure - B]. [b] Notice dated 19.03.2024 under Section 148 of the Act [Annexure - C]. [c] Intimation Letter dated 09.07.2024 under Section 144B of the Act [Annexure - D]. [d] Order dated 02.01.2025 under Section 147 r/w Section 144 r/w Section 144B of the IT Act [Annexure - L]. [e] Demand Notice dated 02.01.2025 under Section 156 of the Act [Annexure - L1]. [f] Notice dated 10.03.2025 under Section 226(3) of the Act [Annexure - M].

IN W.P.No.15078/2025 [a] Order dated 31.03.2022 under Section 148A(d) of the Act [Annexure - A]. [[b] Notice dated 31.03.2022 under Section 148 of the Act [Annexure - B].

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

[c] Assessment Order dated 30.03.2023 under Section 147 of the Act. [d] The Computation Sheet dated 30.03.2023 [Annexure - E]. [e] Demand Notice dated 30.03.2023 under Section 156 of the Act [Annexure - F]. [f] Penalty Order dated 28.08.2023 under Section 272A(1)(d) of the IT Act [Annexure - G]. [g] Order dated 25.09.2023 under Section 270A of the IT Act [Annexure - H]. [h] Attachment Notices dated 07.03.2025 and 10.03.2025 under Section 226(3) of the IT Act [Annexures - J, J1, J2 and J3]

The petitioner had also called in question similar orders/notices in W.P. No.10973/2025 for the Assessment Year 2017-18, and this Court has disposed of this petition by the order dated 25.04.2025 opining that Notice under Section 142(1)

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

of the IT Act has not been served on the petitioner, and that the petitioner should have another opportunity. This Court's order in the afore petition reads as under: "3. The grievance of the Petitioner is that the notice under Section 142(1) of the Income Tax Act, 1961 was not served on the petitioner and as such, the Petitioner could not reply to the same resulting in the assessment order having been passed vide Annexure-M. There is nothing placed on record that the Petitioner has been served with a notice.

4.

In that view of the matter, in the interest of justice I'm of the considered opinion that the petitioner should be provided an opportunity to reply to 142(1) notice which could be considered by the respondent."

This Court, in the light of this opinion, and the reasons assigned by the petitioner in the present matters to assert that it was not served with notices under 148A of the IT Act, is of the considered view that the petitions must be allowed-in-part quashing the assessment orders and attachment orders, but on

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

the condition that the petitioner shall not be entitled to raise the ground of limitation. At this stage, it is pointed out that the petitioner has also raised the question of jurisdiction, and it would suffice for this Court to observe that no opinion is rendered on such ground and all aspects must be considered afresh. In the light of the afore, the following:

ORDER a. The petitions are allowed-in-part. b. The impugned Assessment Orders, Notices and the Attachment orders under Sections 148A(d), 144 read with Section 144B of the IT Act and also the Notices under Section 226(3) of the IT Act in W.P.No.13055/2025 [Annexures - B, C, D L, L1 and M] and in W.P.No.15078/2025 [Annexures - A, B, D, E, F, G, H and J Series] are quashed. c. The petitioner is reserved with liberty to file a response to the Notices under Section

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HC-KAR NC: 2025:KHC:18933 WP No. 13055 of 2025 C/W WP No. 15078 of 2025

148A(b) of the IT Act by 30.06.2025 with liberty to the respondents to consider the same and pass such orders and subject to this Court's observations as aforesaid.

SD/- (B M SHYAM PRASAD) JUDGE

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