SHRI SHRINIVAS ASHOK NAIDU vs. THE INCOME TAX DEPARTMENT

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WP/101697/2022HC KarnatakaKAHC02006249202204 April 2025Bench: JYOTI MULIMANI5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the matter required a remand. The Court noted that the petitioner had submitted that similar proceedings were initiated for his wife for the assessment year 2018-19 concerning the same transaction, and a reassessment order had been passed. The petitioner's grievance was that the Department failed to consider these submissions and erroneously proceeded with the matter. The Court found it significant that a reassessment order for the assessment year 2018-19 concerning the same transaction had already been passed. Despite this, the Department passed the order under Section 148A(d). Consequently, the Court quashed the impugned notices and order (Annexures-B, E, and F) and remanded the matter to the respondent to the stage of reply to the notice issued under Section 148A(b). The petitioner was directed to appear before the respondent on 28.04.2025 with all documents, and liberty was granted to seek a personal hearing. All contentions of the parties were left open.

What were the facts?

The petitioner, Shri Shrinivas Ashok Naidu, filed a writ petition seeking to quash a notice dated 15.03.2022 under Section 148A(b), an order dated 31.03.2022 under Section 148A(d), and a notice dated 01.04.2022 under Section 148 of the Income Tax Act, 1961. The petitioner argued that reassessment proceedings for the same transaction and assessment year (2018-19) had already been completed. The petitioner had submitted a reply to the notice under Section 148A(b), highlighting that similar proceedings for the same transaction were initiated for his wife for the assessment year 2018-19, and a reassessment order had been passed. The petitioner contended that the Department failed to consider this submission and erroneously proceeded with the matter.

What were the issues?

1. Whether the Income Tax Department could issue a notice under Section 148A(b) and proceed with reassessment proceedings for the assessment year 2018-19, when a reassessment order for the same transaction and assessment year had already been passed. Assessee's Contention: The assessee argued that since a reassessment order for the assessment year 2018-19 concerning the very same transaction had already been passed, the Department could not issue a fresh notice to the petitioner. The assessee relied on the fact that similar proceedings for his wife for the same assessment year and transaction had concluded with a reassessment order, and this was brought to the Department's notice. Revenue's Contention: The revenue justified the action taken by the Department and submitted that the writ petition should be dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC-D:6014 WP No. 101697 of 2022

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 101697 OF 2022 (T-IT) BETWEEN:

SHRI SHRINIVAS ASHOK NAIDU, AGE: 50 YEARS, OCC: BUSINESS AND AGRICULTURE, R/O: MAYUR PARK, YALAKKISHETTAR COLONY, DHARWAD-580 007. … PETITIONER (BY SRI. SANGRAM S. KULKARNI, ADVOCATE)

AND:

THE INCOME TAX DEPARTMENT, OFFICE OF THE INCOME TAX OFFICER, WARD-1(1), HUBLI, C.R. BUILDING, NAVANAGAR, HUBBALLI, KARNATAKA-580 025. … RESPONDENT (BY SRI. M. THIRUMALESH AND SMT. ROOPA ANAVEKAR, ADVOCATES)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

THIS WRIT PETITION IS LISTED FOR HEARING- INTERLOCUTORY APPLICATION, THIS DAY, AN ORDER IS MADE AS UNDER:

Digitally signed by PREMCHANDRA M R Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC-D:6014 WP No. 101697 of 2022

ORAL ORDER

Sri.Sangram S.Kulkarni., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondent have appeared in person. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the notice dated 15.03.2022 issued by the respondent; the order dated 31.03.2022 passed under clause (d) of Section 148A of the Income Tax Act and the notice dated 01.04.2022 issued under Section 148 vide Annexures-B, E and F. 3. The Department issued notice under Section 148(b) on 15.03.2022. The assessee submitted the reply. The Department passed order under Section 148A(d) on 31.03.2022 and notice under Section 148 was issued on 01.04.2022. Under these circumstances, the petitioner is before this Court. 4. Counsel for the respective parties urged several contentions. Counsel Sri.Sangram S.Kulkarni., in presenting his arguments contends that for the very same transaction i.e., for

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NC: 2025:KHC-D:6014 WP No. 101697 of 2022

the assessment year 2018-19, reassessment order was passed. Hence, the Department could not have issued notice to the petitioner. Counsel Sri.M.Thirumalesh urged several contentions and he justified the action on the part of the Department and submitted that the writ petition may be dismissed. 5. Heard the arguments and perused the Writ papers with utmost care. 6. The Department issued notice under Section 148A(b) on 15.03.2022. The petitioner electronically submitted his submissions stating that similar proceedings were initiated in the case of his wife for the assessment year 2018-19 in respect of the very same transaction. The petitioner’s grievance is that the Department has failed to take note of the submissions of the petitioner and erroneously proceeded with the matter. It is significant to note that the Department had passed the reassessment order for the assessment year 2018- 19 in respect of the very same transaction. Despite the reassessment order, the Department has passed the 148A(d) order. In my view, the matter requires a remand. Liberty is

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NC: 2025:KHC-D:6014 WP No. 101697 of 2022

accorded to the petitioner to bring it to the notice of the Department about the reassessment order in the case of the wife of the petitioner and also the order passed by this Court in Writ Petition No.103254/2022 for redressal of his grievance about issuance of notice under Section 148A(b). Hence, this Court deems it appropriate to quash Annexures-B, E and F. 7. The Writ of Certiorari is ordered. The notice dated 15.03.2022 issued by the respondent; the order dated 31.03.2022 passed under Section 148A(d) of the Income Tax Act and notice dated 01.04.2022 issued under Section 148 vide Annexures-B, E and F are quashed. The matter is remanded to the respondent to the stage of reply to notice issued under Section 148A(b). Since the petitioner is represented by his counsel, he is directed to appear before the respondent on 28.04.2025 with all the documents. All contentions of the parties are left open. If the petitioner seeks a personal hearing, the same must be accorded to him. 8. Resultantly, the Writ Petition is allowed and remanded.

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NC: 2025:KHC-D:6014 WP No. 101697 of 2022

Because of the disposal of the Writ Petition, all pending interlocutory applications, if any are disposed of, and the interim order, if any granted by this Court stands discharged.

Sd/- (JYOTI MULIMANI) JUDGE

MRP/RH LIST NO.: 1 SL NO.: 31

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