Karnataka High Court
Zameer Ahmad Munaaf vs National Faceless Assessment Centre ... on 6 November, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:45041
WP No. 33467 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 33467 OF 2025 (T-IT)
BETWEEN:
ZAMEER AHMAD MUNAAF
S/O SRI ZAMEER AHMED
AGE ABOUT 32 YEARS
NO 136, 9TH MAIN, MARUTHI NAGAR,
HEGGANAHALLI, VISWANEEDAM,
BANGALORE NORTH,
BANGALORE - 560 091
...PETITIONER
(BY SRI. SHREEHARI KUTSA, ADVOCATE)
AND:
1. NATIONAL FACELESS ASSESSMENT CENTRE (NFAC)
A CENTRE DESCRIBED UNDER SECTION 144B
OF THE INCOME TAX ACT, 1961,
ROOM NO. 401, 2ND FLOOR, E-RAMP,
Digitally signed
JAWAHARALAL NEHRU STADIUM,
by CHANDANA DELHI - 110 003
BM REP. BY PR. CHIEF COMMISSIONER
Location: High OF INCOME TAX (NFAC )
Court of
Karnataka 2. THE ASSESSMENT UNIT
A UNIT CREATED UNDER SECTION 144B
OF THE INCOME TAX ACT, 1961
ROOM NO.401, 2ND FLOOR, E-RAMP,
JAWAHARALAL NEHRU STADIUM ,
DELHI - 110 003
REP. BY PR. CHIEF COMMISSIONER
OF INCOME TAX (NFAC )
3. INCOME TAX OFFICER WARD 6(1)(3)
JURISDICTIONAL ASSESSMENT OFFICER (JAO)
WARD 6(1)(3), 4TH FLOOR,
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NC: 2025:KHC:45041
WP No. 33467 of 2025
HC-KAR
BMTC BUILDING, 80 FET ROAD,
6TH BLOCK, NEAR KHB GAMES VILLAGE,
KORAMANGALA, BENGALURU - 560 095
4. PRINCIPAL COMMISSIONER OF INCOME TAX (PCIT)(6)
BMTC BUILDING, 80 FT ROAD, 6TH BLOCK,
NEAR KHB GAMES VILLAGE, KORAMANGALA,
BENGALURU - 560 095
...RESPONDENTS
(BY SRI. M. DILIP, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHG THE DIGITALLY
SIGNED AND ELECTRONICALLY COMMUNICATED PENALTY
ORDER DATED 30.09.2025 PASSED UNDER SECTION 270A OF THE
INCOME TAX ACT, 1961, BY THE RESPONDENT NO. 1 FOR THE
ASSESSMENT YEAR 2023-24, BEARING DIN NO.
ITBA/PNL/F/270A/2025-26/1081359517(1), ENCLOSED AS
ANNEXURE-E1 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
In this petition, petitioner seeks for the following reliefs:-
"i. Issue a Writ of Certiorari or any other appropriate writ, order or direction, quashing the digitally signed and electronically communicated Penalty Order dated 30.09.2025 passed under Section 270A of the Income Tax Act, 1961, by the Respondent No.1 for the Assessment Year 2023-24, bearing DIN No.ITBA/ PNL/F/270A/2025-26/1081359517(1), enclosed as Annexure-E1.-3-
NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR ii. Issue a Writ of Certiorari or any other appropriate writ, order or direction, quashing the digitally signed and electronically communicated Demand Notice dated 30.09.2025 issued by the Respondent No.1 for the Assessment Year 2023-24 under Section 156 in pursuance of the Penalty Order under Section 270A, bearing DIN No.ITBA/PNL/S/156/2025- 26/1081359398(1) enclosed as Annexure-E2.
iii. Pass such other and further order(s) as this Hon'ble Court may deem fit in the facts and circumstances of the case, including the costs of this petition."
2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
3. Though several contentions have been urged by both sides in support of their respective claims, the issue in controversy between the parties is directly and squarely covered by the judgment of this Court in the case of Kanakapura Venkataramanaswamy Madhusudhan Karthik, Vs. Assessment Unit and Anr., - W.P.No.28255/2024 dated 04.04.2025, wherein it was held as under:
-4-NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR In this petition, petitioner seeks the following reliefs.
"i. Writ of certiorari or writ in the nature of certiorari or any other appropriate writ order or 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 order under Section 27ADA of Act dated 10.06.2024 in DINITBA/PNL/F/271da/ 2024-25/1065515582(1) (Annexure -K) and notice of demand issued u/s. 156 of the Act dated 10.06.2024 in DIN.ITBA/PNL/S/156/2024- 25/1065513017(1) (Annexure -K1) and notice of penalty u/s.24 r.w.s 271DA of the Act, vide Annexure B1, dated 07.12.2023 in din NO.ITBA/PNL/S/271DA/2023.24/ 1058532981(1) for the A.Y.2020.21 .
ii.Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of Constitution of India ordering and directing the Respondents by themselves by their subordinates, servants, or agents to withdraw and cancel the impugned order under Section 27ADA of Act dated 10.06.2024 in DIN: ITBA/ PNL/ F/ 271DA /2024- 25/ 1065515582 (1) (ANNEXURE-K) and notice of Demand issued u/s.156 of the Act dated 10.06.2024 in DIN:ITBA/PNL/S/156/2024- 25/1065513017(1) (ANNEXURE-KA) notice of penalty u/s. 274 r.w.s.271DA of the Act dt.:07.12.2023 in DIN No.:ITBA/PNL/S/271DA /2023-24/ 1058532981 (A) (ANNEXURE B1) for the A.Y.2021-21 and iii. A writ of Prohibition or a writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of Constitution of India, prohibiting and restraining the Respondents by themselves their sub-ordinates, servants and agents from taking any action in furtherance or consequent to impugned order under Section 27ADA of Act dated 10.06.2024 in DIN:ITBA/PNL/F/271DA/2024-25/1065515582(1) (ANNEXURE K) and notice of Demand issued u/s.156 of the Act dated 10.06.2024 in -5- NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR DIN:ITBA/PNL/S/156/2024-25/1065513017(1) (Annexure K1) for the A.Y. 2020-21 passed by respondents.
iv. Grant the interim relief in terms of prayer (iii) above, and v. Issue such other order, writ or direction as this Hon'ble Court deems fit."
2. Heard the learned counsel for petitioner, learned counsel for respondents and perused the material on record.
3. A perusal of the material on record will indicate that, the first respondent passed an assessment order dated 07.12.2023, raising total tax demand of `13,04,314/-, pursuant to which, a notice under Section 274 read with Section 271 DA of the Income Tax Act was issued by the first respondent, calling upon the petitioner to show cause as to why penalty should not be imposed upon the petitioner. Subsequently, on 19.12.2023, the petitioner filed a statutory appeal before the competent authority, which is pending consideration even as on today.
4. Under these circumstances, the petitioner submitted repeated replies, representations, etc. calling upon the first respondent to keep the penalty proceedings in abeyance on the ground that, the appeal was pending against the original assessment order.
5. It is the grievance of the petitioner that despite the petitioner filing an appeal against the assessment order -6- NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR coupled with repeatedly requesting the first respondent to keep the penalty proceedings in abeyance on the ground that an appeal was pending consideration, the first respondent has proceeded to pass the impugned order dated 10.06.2024 vide Annexure K, followed by subsequent notice at Annexure K1, which are assailed in the present petition.
In support of the submission, he places reliance upon the order passed by this Court in the case of ANJANADRI FUEL STATION Vs. INCOME TAX OFFICER AND ANOTHER passed in WRIT PETITION No.6164/2024 (T-IT), wherein it is held as under:
"In this petition, the petitioner seeks the following reliefs:
"i) Writ of Certiorari or writ in the nature of certiorari or any other appropriate writ order or 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 order under Section 270A of Act dated 18.09.2023 in DIN:ITBA/PNL/F/270A/2023-24/ 1056251767(1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN ITBA/PLN/S/156/2023-
24/1056249880(1) (Annexure-G1) for the AY 2018-19 and impugned order under Section 272A(1)(d) of Act dated 13.10.2023 in DIN and Order No. ITBA/ PNL/ F/ 272A (1) (D) /2023-24/ 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN:ITBA/PNL/S/156 /2023- 24/1057041710 (1) (Annexure-H1) for the AY 2018-19.
(ii) Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under -7- NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR Article 226 of Constitution of India ordering and directing the Respondents by themselves by their subordinates, servants or agents to withdraw and cancel the impugned order under Section 270a of Act dated 18.09.2023 in DIN:
ITBA/PNL/F/270A/2023-24/ 1056251767(1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN: ITBA/PNL/S/156/2023-
24/1056249880(1) (Annexure-G1) for the AY 2018-19 and impugned order under Section 272A(1)(D) of Act dated 13.10.2023 in DIN and Order No. ITBA/ PNL/ F/ 272A(1) (D) / 2023-24 / 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN: ITBA/ PNL/S/ 156/ 2023-24/ 1057041710 (1) (Annexure-H1) for the Ay 2018-19
(iii) A writ of Prohibition or a writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of Constitution of India prohibiting and restraining the Respondents by themselves their sub ordinates, servants and agents from taking any action in furtherance or consequent to impugned order under Section 270A of Act dated 18.09.2023 in DIN.ITBA/PNL/F/270A/2023-24/ 1056251767 (1) (Annexure-G) and Notice of Demand issued u/s 156 of the Act dated 18.09.2023 in DIN: ITBA /PNL /S/ 156 /2023-24/ 1056249880 (1) (Annexure-G1) for the AY 2018-19 and impugned order under Section 272A(1)(D) of Act dated 13.10.2023 in DIN and Order No. ITBA/PNL/ F/ 272A(1) (D)/2023-24 / 1057044932 (1) (Annexure-H) and Notice of Demand issued u/s 156 of the Act dated 13.10.2023 in DIN: ITBA/PNL/S/156/2023- 24/1057041710 (1) (Annexure-H1) for the AY 2018-19 of the Act for the Assessment Year 2015-16 passed by Respondents.
(iv) Grant the interim relief in terms of prayer (iii) above, and
(v) Issue such other order, writ or direction as this Hon'ble Court deems fit."
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2. Heard learned counsel for the petitioner, learned counsel for the respondents and perused the material on record.
3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that aggrieved by the Assessment Order dated 30.03.2023 passed by the respondents for the Assessment Year 2018- 19, the petitioner filed an appeal on 12.05.2023. It is the grievance of the petitioner that despite pendency of the appeal before the Appellate Authority, the respondents have proceeded to issue penalty notice and show-cause notice followed by the impugned penalty orders and demand notice, which are assailed in the present petition inter alia contending that since the appeals were pending, it would be necessary to keep the penalty orders and demand notices in abeyance till disposal of the appeals as held by this Court in the case of Mr. B.S. Uday Shetty Vs. The Assistant Commissioner of Income Tax - W.P.No.8585/2022 dated 21.04.2022.
4. Per contra, learned counsel for the respondents submits that even the impugned penalty orders are appealable orders and as such, keeping the penalty orders and demand notice in abeyance till disposal of the appeal would not arise in the facts and circumstances of the instant case and as such, there is no merit in the present petition and the same is liable to be dismissed.
5. A perusal of Section 275 of the I.T. Act will indicate that there is clear embargo/bar on proceeding to pass penalty order if an appeal is pending on the Assessment Order. As rightly contended by the learned counsel for the petitioner in B.S. Uday Shetty's case (supra), under identical circumstances, where the petitioner-Assessee did not file an appeal against the Original Assessment Order, this Court came to the conclusion that till disposal of the appeals filed by the Assessee, it is necessary to keep the penalty orders and notices in abeyance. In view of the aforesaid facts and circumstances and the -9- NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR judgment of this Court in B.S. Uday Shetty's case (supra), rendered under identical circumstances, the present petition also deserves to be disposed of keeping penalty orders and demand notices in abeyance till disposal of the appeals filed by the petitioner.
6. In the result, I pass the following:
ORDER i. The Writ Petition is allowed.
ii. The impugned orders at Annexures-G and H dated 18.09.2023 and 13.10.2023 respectively, and the demand notices at Annexure-G1 and H1 dated 18.09.2023 and 13.10.2023 are hereby kept in abeyance till disposal of the appeals filed by the petitioner.
iii. Liberty is reserved in favour of the respondents to proceed further upon disposal of the appeals filed by the petitioner."
6. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed.
7. As rightly contended by the learned counsel for the petitioner, in the light of the provisions contained in Section 275 of the Income Tax Act coupled with the order passed by this Court in ANJANADRI FUEL STATION'S CASE (SUPRA), having regard to the undisputed fact that the appeal filed by the petitioner was still pending adjudication, Section 275 of the Act would act as a complete bar/embargo to pass a penalty order as against the petitioner which is impermissible in law, warranting interference by this Court in the present petition.
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NC: 2025:KHC:45041 WP No. 33467 of 2025 HC-KAR
8. In the result, I pass the following:
ORDER i. The Writ Petition is allowed.
ii. The impugned order at Annexure K dated 10.06.2024 and the notice of demand dated 10.06.2024 at Annexure K1 are hereby kept in abeyance till disposal of the appeal filed by the petitioner.
iii. Liberty is reserved in favour of the respondents to proceed further upon disposal of the appeal filed by the petitioner.
4. As rightly contended by the learned counsel for the petitioner, in the light of the provisions contained in Section 275 of the Income Tax Act coupled with the order passed by this Court in Anjanadri Fuel Station vs. Income Tax Officer and Another passed in Writ Petition No.6164/2024 (T-IT) dated 14.08.2024, having regard to the undisputed fact that the appeal filed by the petitioner was still pending adjudication, Section 275 of the Act would act as a complete bar/embargo to pass a penalty order as against the petitioner which is impermissible in law, warranting interference by this Court in the present petition.
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5. In the result, I pass the following:
ORDER i. The Writ Petition is allowed.
ii. The impugned order at Annexure - E1 dated 30.09.2025 and the notice of demand dated 30.09.2025 at Annexure -E2 are hereby kept in abeyance till disposal of the appeal filed by the petitioner.
iii. Liberty is reserved in favour of the respondents to proceed further upon disposal of the appeal filed by the petitioner.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 21