Sanjay Mahendrabhai Desai Vs National E-Assessment Centre Assessment Unit & Anr. (Karnataka High Court)
The Karnataka High Court quashed an assessment order passed under Sections 144 and 144B of the Income Tax Act, 1961, holding that the assessee was not provided a reasonable opportunity of hearing before completion of the assessment.
The petitioner, an individual assessee, filed the return of income for Assessment Year 2024-25 on 25 October 2024. According to the petitioner, several notices issued by the Income Tax Department were not received. The petitioner became aware of the earlier notices only after receiving an SMS regarding a show-cause notice under Section 144 on 16 September 2025.
A show-cause notice proposing variation in the assessment was issued on 23 January 2026. The petitioner submitted that the notice was received only on 24 January 2026 at 10:30 p.m., leaving only three days to respond, which was inadequate. The petitioner therefore requested an adjournment. On 28 January 2026, the petitioner also sought a personal hearing through video conferencing on or after 12 February 2026.
Despite this request, the respondents issued an intimation on 30 January 2026 at 12:55 p.m., fixing the video conference for 4:00 p.m. on the same day, effectively providing only three hours’ notice. The petitioner requested that the hearing be rescheduled after 12 February 2026, but the request was not considered. The respondents thereafter passed the assessment order on 10 February 2026 under Sections 144 and 144B.
