Appaji Health And Welfare Trust Vs ITO (Karnataka High Court)
Reassessment by Jurisdictional AO Invalid – Karnataka HC Follows Ramachandra Reddy Precedent- Section 151A Violation – HC Quashes 148A & Consequential Penalty Orders
Petitioner–Trust challenged the reassessment proceedings initiated for AY 2020-21, including the notice issued u/s 148A(b) dated 05.01.2024, the order u/s 148A(d), notice u/s 148, assessment order u/s 147 r.w.s. 144B, & consequential penalty orders u/s 270A, 271AAC(1) & 272A(1)(d).
The Trust contended that the entire proceedings were without jurisdiction since the impugned notices were issued by the jurisdictional AO outside the scope of Section 151A, contrary to the CBDT’s faceless scheme. Reliance was placed on the coordinate bench decision in Ramachandra Reddy Ravi Kumar Vs DCIT (WP No.17352/2022, order dated 28.08.2025).
Following the said precedent, the Court held that the issue was directly covered & that the impugned notices & all consequential orders were unsustainable.
Held: Notices & orders issued outside the scope of Section 151A stand obliterated; all consequential proceedings quashed. Liberty granted to the Revenue to seek revival if the Supreme Court later rules in its favour on the pending issue.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
In this petition, petitioner seeks for the following reliefs:
“i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 05/01/2024 bearing DIN No.ITBA/AST/F/148A(SCN)/2023-24/1059393606(1) issued by the Respondent No.1 for the assessment year 2020-21 herein marked as Annexure – A.
ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 151 of the Act dated 14/02/2024 without DIN, passed by the Respondent No.3 for the assessment year 2020-21 herein marked as Annexure – A1.
(iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the intimation letter dated 15/02/2024 for the order under section 151 of the Act vide ITBA/COM/S/91/2023-24/1060977992(1) issued by the Respondent No.3 for the assessment year 2020-21 herein marked as Annexure – A2.
(iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act dated: 16/02/2024 bearing DIN No.ITBA/AST/F/148A/2023-24/1061038145(1) passed by the Respondent No.1 for the assessment year 2020-21 herein marked as Annexure-A3.
(v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated: 16/02/2024 bearing DIN No.ITBA/AST/S/148_1/2023-24/1061038842(1) issued by the Respondent No.1 for the assessment year 2020-21 herein marked as Annexure-A4.
(vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed U/s. 147 r.w.s.144, 144B dated: 07/03/2025 bearing ITBA/AST/S/147/2024-25/1074193988(1) passed by the Respondent No.2 for the assessment year 2020-21 herein marked as Annexure-A5.
(vii) Issue a writ of Certiorari or direction in the nature of a writ of Certiorari quashing the penalty order was passed u/s 272A(1) (d) of the Act dated: 17/09/2025 bearing DIN No. ITBA/PNL/F/272A(1)(d)/2025-26/1080852661(1) by the Respondent No.2 for the assessment year 2020-21 herein marked as Annexure-A6.
(viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order was passed U/s 270Aof the Act dated:23/09/2025 bearing DIN No.ITBA/PNL/F/270A/2025-26/1081075531(1), by the Respondent No.2 for the assessment year 2020-21 herein marked as Annexure-A7.
(ix) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order was passed u/s 271AACC(1) of the Act dated:23/09/2025 bearing DIN No.ITBA/PNL/S/271AAC(1)/2025-26/1081082161(1) by the Respondent No.2 for the assessment year 2020-21 herein marked as Annexure-A8.
x) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.”
2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
