Karnataka High Court
Sri.Lakshmi Reddy Boyilla vs Assessment Unit on 21 November, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:48268
WP No. 34780 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 21ST DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 34780 OF 2025 (T-IT)
BETWEEN:
1. SRI.LAKSHMI REDDY BOYILLA
SON OF SRI YANADI REDDY BOYILLA
AGE ABOUT 61 YEARS
PROPRIETOR: PRANAY ENTERPRISES,
337-4, TIMMAREDDY LAYOUT,
HULIMANGALA POST,
JIGANI HOBLI, ANEKAL,
BANGALORE - 560 105
...PETITIONER
(BY SRI. ANNAMALAI S., ADVOCATE)
AND:
1. ASSESSMENT UNIT
Digitally signed INCOME TAX DEPARTMENT
by
SHARADAVANI REP BY ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT
B
COMMISSIONER OF INCOME TAX/
Location: High
Court of INCOME TAX DEPARTMENT,
Karnataka
MINISTRY OF FINANCE,
ROOM NO 401, 2ND FLOOR,
E-RAMP,
JAWAHARLAL NEHRU STADIUM
DELHI - 110 003
2. THE INCOME TAX OFFICER
OFFICE OF THE INCOME TAX OFFICER,
WARD 4(2) (3),
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NC: 2025:KHC:48268
WP No. 34780 of 2025
HC-KAR
BANGALORE, BMTC BUILDING
80 FEET ROAD, 6TH BLOCK,
NEAR KHB GAMES VILLAGE,
KORAMANGALA
BENGALURU
KARNATAKA - 560 095
3. THE INCOME TAX OFFICER
OFFICE OF THE INCOME TAX OFFICER,
WARD 4 (3) (3),
BANGALORE, BMTC BUILDING,
80 FEET ROAD, 6TH BLOCK,
NEAR KHB GAMES VILLAGE,
KORAMANGALA,
BENGALURU
KARNATAKA - 560 095
...RESPONDENTS
(BY SRI. E.I. SANMATHI, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SHOW-
CAUSE NOTICE UNDER SECTION 144 OF THE ACT DATED
17.11.2023 ISSUED BY THE RESPONDENT NO.1 FOR THE
ASSESSMENT YEAR 2018-19 FOR THE ASSESSMENT YEAR
2018-18 BEARING DIN NO.ITBA/AST/F/144 (SCN) (F)/2023-
24/1058037264(1) COPY OF THE SAME IS REFERRED AS
ANNEXURE -A1 AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
Sri E I Sanmati, learned counsel accepts notice for respondents.
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2. In this petition, the petitioner seeks the following reliefs:
"Wherefore it is prayed that this Hon'ble Court be pleased to:
1. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice under section 144 of the Act dated 17.11.2023 issued by the Respondent No.1 for the assessment year 2018-19 bearing DIN No.ITBA/AST/F/144(SCN) (F)/2023-
24/1058037264(1) and copy of the same is referred as Annexure 'A1'.
II. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice dated 26.12.2023 issued by the Respondent No.1 for the assessment year 2018-19 bearing DIN No. ITBA/AST/F/144 (SCN)/202324/1059045622(1) and copy of the same is referred as Annexure 'A2'.
iii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Assessment order dated 23.01.2024 passed by the Respondent No.1 for the assessment year 2018-19 under section 147 read with section 144 read with section 144B of the Act bearing DIN No. ITBA/AST/S/147/2023-24/1060008980(1) and copy of the same is referred as Annexure 'A3'.
iv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Computation sheet dated 23.01.2024 issued by the Respondent No.1 for the assessment year 2018-19 bearing DIN & Document Number ITBA/AST/S/183/2023-24/1060008994(1) and copy of the same is referred as Annexure 'A4'.
v. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Demand notice dated 23.01.2024 issued by the Respondent No.1 for the assessment year 2018-19 under section 156 of the Act bearing DIN & Notice No. ITBA/AST/S/156/2023- 24/1060009161(1) and copy of the same is referred as Annexure 'A5'.
-4-NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR vii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice dated 04.10.2023 issued by the Respondent No.1 for the assessment year 2018-19 under section 274 read with section 272A(1) (d) of the Act bearing DIN No. ITBA/PNL/S/272A(1)(d)_FL/2023-24/1056771896(1) and copy of the same is referred as Annexure 'A6'.
vii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Penalty order dated 26.04.2024 passed by the Respondent No.1 for the assessment year 2018-19 under section 272A(1) (d) of the Act bearing DIN No. ITBA/PNL/F/272A(1)(d)/2024- 25/1064400710(1) and copy of the same is referred as Annexure 'A7'.
viii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Computation sheet dated 26.04.2024 issued by the Respondent No.1 for the assessment year 2018-19 bearing DIN & Order Number ITBA/PNL/S/272A(1)(d)_FL/202324/1056771896(1) and copy of the same is referred as Annexure 'A8'.
ix. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Demand notice dated 26.04.2024 issued by the Respondent No.1 for the assessment year 2018-19 under section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024- 25/1064396497(1) and copy of the same is referred as Annexure 'A9'.
X. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice dated 23.01.2024 issued by the Respondent No.1 for the assessment year 2018-19 under section 274 read with section 270A of the Act bearing DIN No. ITBA/PNL/S/270A/202324/1060009071(1) and copy of the same is referred as Annexure 'A10'.
xi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Penalty order dated 24.07.2024 passed by the Respondent No.1 for the assessment year 2018-19 under section 272A(1)(d) of the Act bearing DIN No. ITBA/PNL/F/270A/2024- -5- NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR 25/1066972221(1) and copy of the same is referred as Annexure 'A11'.
xii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Computation sheet dated 24.07.2024 issued by the Respondent No.1 for the assessment year 2018-19 bearing DIN & Order Number ITBA/PNL/S/270A/202324/1060009071(1) and copy of the same is referred as Annexure 'A12'.
xiii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Demand notice dated 24.07.2024 issued by the Respondent No.1 for the assessment year 2018-19 under section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024- 25/1066967475(1) and copy of the same is referred as Annexure 'A13'.
xiv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Notice issued under section 148A(b) of the Act dated 16.03.2023 issued by the Respondent No.2 for the assessment year 2018-19 bearing DIN & Notice No. ITBA/AST/F/148A(SCN)/2021- 22/1040883457(1) and copy of the same is referred as Annexure 'B1'.
xv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Order passed under section 148A(d) of the Act dated 31.03.2022 by the Respondent No.2 for the assessment year 2018-19 bearing DIN No. ITBA/AST/F/148A/2021-22/1042264746(1) and copy of the same is referred as Annexure 'B2'.
xvi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Notice dated 01.04.2022 issued under section 148 of the Act bearing DIN & Notice No. ITBA/AST/S/148_1/2022-23/1042432093(1) issued by the Respondent No.2 for the assessment year 2018-19 and copy of the same is referred as Annexure 'B3'.
xvii. And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity."
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3. A perusal of the material on record will indicate that the respondent issued a notice under Section 148 A(b) of the Income Tax Act, dated 17.03.2022 calling upon the petitioner to file his reply on or before 23.03.2022 which is less than the period of seven days as held by the Division Bench of this Court in the case of The Income Tax Officer and others vs. Venkatala Iyyappa Rajanna (W.A. no.612/2025 DD 05.08.2025), wherein it is held as under:
"ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
1. The Revenue has filed the present appeal impugning an order dated 04.06.2024 passed by the learned Single Judge of this Court in Writ Petition No. 12618 of 2024 [T-IT] captioned Venkatala Iyyappa Rajanna Vs. The Income Tax Officer and others [NC:2024 KHC:19107].
2. The respondent [Assessee] had filed the said petition, inter alia, impugning a notice dated 20.03.2022 issued under Section 148A (b) of the Income Tax Act, 1961 [Act] for the assessment year [AY] 2015-16 on the ground that the said notice did not provide sufficient time for the Assessee to file a response to show cause calling upon him to show cause why it was not a fit case for issuance of a notice under Section 148 of the Act.
3. The learned Single Judge has found merit in the aforesaid contention and accordingly, set aside the impugned notice as well as the notice dated 31.03.2022 issued under Section 148A (d) of the Act and further reassessment proceedings that were initiated pursuant to the said notice.-7-
NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR
4. Before proceeding further, it would be relevant to refer to Section 148A of the Act, as was in force at the material time. The same is set out as below:
"148A. Conducting inquiry, providing opportunity before issue of notice under section
148. The Assessing Officer shall, before issuing any notice under section 148,--
(a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment;
(b) provide an opportunity of being heard to the assessee, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);
(c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b);
(d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires:-8-
NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR Provided that the provisions of this section shall not apply in a case where,--
(a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or
(b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or
(c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, 2[relate to, the assessee; or
(d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.]
5. It is clear from the plain reading of Clause (b) of Section 148A of the Act, that a notice under Section 148A(b) of the Act is required to provide an opportunity to the assessee to respond to the information which may suggests that the assessee's income has escaped assessment. The minimum period of such notice is stipulated as "not less than seven days". In the present case, the impugned notice was issued on 20.03.2022 and the Assessee was called upon to furnish a reply on or before 25.03.2022. Indisputably, the impugned notice did not comply with the requirement of providing a minimum period of seven days to respond to the said notice.-9-
NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR
6. The impugned notice is contrary to law as rightly pointed out by the learned Single Judge.
7. In addition to the above, it is also relevant to note that the impugned notice was issued in respect of AY 2015-2016. Pursuant to the impugned notice, an order dated 31.03.2022 was passed under Section 148(d) of the Act, holding that it was a fit case for issuance of notice under Section 148 of the Act. The question, whether such notices issued in respect of the Assessment Year, 2015-2016 were sustainable was a subject matter of observation by the Supreme Court of India, in Union of India V. Rajiv Bansal1. During the said proceedings, it was readily conceded by the Revenue that all such notices issued on or after 01.04.2021 in respect of Assessment Year 2015-2016 were liable to be dropped. Paragraph 19 (e) and 19 (f) of the said decision are reproduced below:
"e. The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income-tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-14, 2014-15, 2015-16, 2016-17, and 2017-18 will be within the period of limitation as explained in the tabulation below:
Assessment Within Expiry of Within Expiry of year 3 Limitation Six Limitation years read with Years read with TOLA for TOLA for (2) (4) (1) (2) (3) (4) (5) 2013-2014 31-3- TOLA not 31-3- 30-6- 1
2024 INSC 754
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NC: 2025:KHC:48268
WP No. 34780 of 2025
HC-KAR
2017 applicable 2020 2021
2014-2015 31-3- TOLA not 31-3- 30-6-
2018 applicable 2021 2021
2015-2016 31-3- TOLA not 31-3- TOLA not
2019 applicable 2022 applicable
2016-17 31-3- 30-6- 31-3- TOLA not
2020 2021 2023 applicable
2017-2018 31-3- 30-6- 31-3- TOLA not
2021 2021 2024 applicable
f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA."
8. In view of the concession made by the Revenue in Rajeev Bansal (supra), the reassessment proceedings in the present case would also require to be dropped.
9. It is also relevant to note that in the subsequent decision in Deepak Steel and Power Limited V. CBDT2, the attention of the Supreme Court was also drawn to the concession made by the Revenue in Rajeev Bansal (Supra). The said appeal emanated from the orders passed by the Hon'ble High Court of Orissa at Cuttack, declining to entertain a batch of petitions. The Supreme Court noted the concession made on behalf of the Revenue and accordingly, allowed the writ petitions, which were filed before the High Court of Orissa. The relevant extract of the said decision of the Supreme Court is set out below:
"4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2 Civil Appeal No. 5177/2025 decided on 02.04.2025
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NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR 2024 SCC Online SC 2693, more particularly, paragraph 19(f) which reads thus:-
"19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020."
5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of certain Provisions) Act, 2020. Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.
6. In view of the aforesaid, in such circumstances referred to above the original writ petition Nos. 2446 of 2023, 2543 of 2023 and 2544 of 2023 respectively filed before the High Court of Orissa at cuttack stands allowed."
10. Similarly, in ITO V. R.K. Build Creations (P) Ltd.3, the Supreme Court dismissed the Special Leave Petition arising out of a decision rendered by the Hon'ble Rajasthan High Court in DBC WP No.14414/2022. It would be equally relevant to refer to the said order passed by the Supreme Court, which is reproduced below:
"Delay condoned.
Having regard to the concession made by the petitioner-Department in the case of Union of India v. Rajeev Bansal, Civil Appeal No. 8629 of 2024 on 03.10.2024 (2024 SCC ONLINE 754), this Special 3 Special Leave Petition (Civil) Diary No.59625/2024
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NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR Leave Petition would not survive for further consideration.
Hence, the Special Leave Petition is dismissed.
Pending application(s), if any, shall stand disposed of."
11. The learned counsel appearing for the Revenue fairly states that the said decisions of the Supreme Court will be applicable in this case as well.
12. In view of the above, the present appeal is dismissed. We find no grounds to interfere with the conclusion of the learned Single Judge.
13. Pending IAs, if any, also stand disposed of."
5. In the instant case, as stated supra, the notice under Section 148A(b) dated 17.03.2022 stipulates the period of six days which is less than the prescribed period of seven days and consequently in the light of the judgment of the Hon'ble Division Bench in Venkatala Iyyappa Rajanna's case (supra), I am of the considered opinion that the impugned order and consequent notice deserves to be quashed. Hence, the following-
ORDER
(i) The writ petition is allowed.
(ii) The impugned show-cause notices dated 17.11.2023 and 26.12.2023 at Annexures-A1 and A2,
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NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR the impugned assessment order dated 23.01.2024 at Annexure-A3, the impugned computation sheet dated 23.01.2024 at Annexure-A4, the impugned demand notice dated 23.01.2024 at Annexure-A5, the impugned show-cause notice dated 04.10.2023 at Annexure-A6, the impugned penalty order dated 26.04.2024 at Annexure-A7, the impugned computation sheet dated 26.04.2024 at Annexure-A8, the impugned demand notice dated 26.04.2024 at Anneuxre-A9, the impugned show-cause notice dated 23.01.2024 at Annexure-A10, the impugned penalty order dated 24.07.2024 at Annexure-A11, the impugned computation sheet dated 24.07.2024 at Annexure-A12, the impugned demand notice dated 24.07.2024 at Annexure-A13, the impugned notice dated 16.03.2023 at Annexure-B1, the impugned order dated 31.03.2022 at Annexure-B2 and the impugned notice dated 01.04.2022 at Annexure-B3 are hereby quashed.
(iii) Liberty is reserved in favour of the respondents to initiate proceedings against the petitioner subject to
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NC: 2025:KHC:48268 WP No. 34780 of 2025 HC-KAR all just exceptions and defences available to the petitioner in accordance with law.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE YKL List No.: 2 Sl No.: 4 CT-SG