Shri Muddanapalya Narayanaswamy v. The Assessment Unit

e -e1e-eeeee e e NC:(2026:KHC:11928 WP(No.(6271(of(2026 IN(THE(HIGH(COURT(OF(KARNATAKA(AT(BENGALURU( THDATED(THIS(THE(26 (DAY(OF(FEBRUARY,(2026( BEFORE( THE(HON'BLE(MR.(JUSTICE(S(SUNIL(DUTT(YADAV( WRIT(PETITION(NO.(6271(OF(2026((T-IT) BETWEEN:(

1., SHRI,MUDDANAPALYA,NARAYANASWAMY, KIRAN,KUMAR,,, S/O,SHRI,NARAYANASWAMY,,, AGED,ABOUT,31,YEARS,,, RESIDING,AT,NO.,F-582,,, TH ST12 ,CROSS,,1 ,STAGE,,, MAGADI,MAIN,ROAD,,BHARATHNAGAR,, VISHWANEEDAM,POST,,, BANGALORE,-,560,091, …,PETITIONER, (BY,SRI.,SANDEEPANI,A.,NEGLUR.,,ADVOCATE), Digitallytisigned by0VIJAYA0P AND: Location: HIGH0COURT OF KARNATAKA 1., THE,ASSESSMENT,UNIT,,, NATIONAL,FACELESS,ASSESSMENT,CENTRE,,, INCOME,TAX,DEPARTMENT,,, ND2 ,FLOOR,,JAWAHARLAL,NEHRU,STADIUM,,, NEW,DELHI,-,110,003,

2., THE,ASSESSMENT,UNIT/VERIFICATION,UNIT/, TECHNICAL,UNIT/REVIEW,UNIT,, NATIONAL,FACELESS,ASSESSMENT,CENTRE,,, INCOME,TAX,DEPARTMENT,,, e -e2e-eeeee e e NC:(2026:KHC:11928 WP(No.(6271(of(2026 ND2 ,FLOOR,,JAWAHARLAL,NEHRU,STADIUM,,, NEW,DELHI,-,110,003,

3., INCOME-TAX,OFFICER,, WARD,6(2)(5),,BANGALORE,,, BMTC,BUILDING,,80,FEET,ROAD,,, TH6 ,BLOCK,,NEAR,KHB,GAMES,VILLAGE,, KORAMANGALA,,, BANGALORE,-,560,095,

4., COMMISSIONER,OF,INCOME-TAX,(APPEALS),, NATIONAL,FACELESS,APPEAL,CENTRE,,, INCOME,TAX,DEPARTMENT,,, ROOM,NO.,245-A,,NORTH,BLOCK,,, NEW,DELHI,-,110,001, …,RESPONDENTS, (BY,SRI.,DILIP.,,ADVOCATE), ***, , THIS, W.P., IS, FILED, UNDER, ARTICLE, 226, OF, THE, CONSTITUTION, OF, INDIA,, PRAYING, TO, I., QUASHING, THE, IMPUGNED,ASSESSMENT,ORDER,DATED,02.01.2026,BEARING, DIN,NO.,ITBA/AST/S/144/2025-26/1084370272(1),PASSED,BY, STTHE,1 ,RESPONDENT,UNDER,SECTION,144,R.W.S,250,READ, WITH, SECTION, 144B, OF, THE, INCOME-TAX, ACT,, 1961,, FOR, THE,ASSESSMENT,YEAR,2017-18,(ANNEXURE-A),AND,ETC., , THIS,PETITION,COMING,ON,FOR,PRELIMINARY,HEARING, THIS,DAY,,ORDER,WAS,MADE,THEREIN,AS,UNDER:, CORAM:, HON'BLE,MR.,JUSTICE,S,SUNIL,DUTT,YADAV

ORAL ORDER Petitioner is seeking for setting aside of the assessment order for the assessment year 2017-18 at Annexure-A; computation sheet at Annexure-A1; demand notice at Annexures-A2 and penalty notices at Annexures-B, B1, B2, and B3.

¶2It is the case of the petitioner that the show cause notice dated 19.12.2025 at Annexure-Q was issued with a response required to be filed by 11.00 hours of

24.12.2025. It is submitted that under the faceless scheme, in terms of the SOP applicable relating to issuance of notice and time for response, the assessee is to be provided with a minimum time period of 7 days to respond to the show cause notice. Accordingly, it is submitted that the impugned show cause notice which gave less than 7 days time to respond, is in violation of the applicable SOP and on the said ground, the impugned proceedings are required to be set aside.

¶3Reliance is placed on the order passed in W.P. No. 12923/2023 wherein this Court has reiterated the adherence to the timeline as specified in the SOP in Clause N.1.3.

¶4Sri. Dilip M, learned counsel is unable to controvert the assertion made regarding Annexure-Q show cause notice not being in compliance with the applicable SOP.

¶5In light of the time limit afforded at Annexure-Q being within 7 days and being in violation of the applicable SOP at Clause N.1.3 which requires that atleast 7 days' time must be given for the purpose of making out a response, on such sole ground and that such violation would amount to violation of principles of natural justice, the consequential proceedings including assessment orders are required to be set aside.

¶6Accordingly, the assessment order at Annexure-A; computation sheet at Annexure-A1; demand notice at

Annexures-A2 and penalty notices at Annexure-B, B1, B2, and B3, are set aside. The matter is remitted to the stage of show cause notice dated 19.12.2025. The petitioner is at liberty to make out reply to the same. All contentions are kept open.

¶7In light of the above discussion, petition is allowed. Sd/- (S SUNIL DUTT YADAV) JUDGE VP