Shanmugam Ravi Vs National E-Assessment Centre (Karnataka High Court)
Faceless Assessment Quashed for Violating SOP: Less Than 7 Days’ Time to Reply to SCN Held Invalid
The Karnataka High Court quashed the faceless assessment order u/s 143(3) r/w s.144B, along with the computation sheet, demand notice u/s 156, and penalty notice u/s 274 r/w s.270A for AY 2018-19, on the ground of violation of mandatory Standard Operating Procedure (SOP).
The Court noted that the show-cause notice dated 31-03-2021 granted the Assessee less than seven days to submit a reply, which was contrary to the prescribed SOP and principles of natural justice. Relying on its earlier decision in P.A. Educational Trust vs. Assessment Unit (W.P. No. 12669 of 2025), the Court held that such curtailed opportunity vitiates the entire assessment proceedings.
Accordingly, all impugned orders and notices were set aside, and the matter was remanded to the Assessing Officer for fresh consideration from the stage of replying to the show-cause notice, with all contentions kept open and liberty reserved to the Assessee to raise all pleas in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
In this petition, the petitioner seeks the following reliefs:
i) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the assessment order passed by the Respondent No.1 under Section 143(3) read with Section 144B of the Income-Tax Act, 1961 dated 18.05.2021 for the assessment year 201819 herein marked as Annexure-A1.
ii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the computation sheet passed by the Respondent No.1 for the assessment order passed under Section 143(3) read with Section 144B of the Income-tax Act, 1961 dated 18.05.2021 for the assessment year 2018-19 herein marked as Annexure-A2.
iii) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the notice of demand issued under Section 156 of the Income-tax Act, 1961 dated 18.05.2021 issued by the Respondent No.1 for the assessment year 2018-19 for a sum of Rs.14,16,95,236/- herein marked as Annexure-A3.
iv) Issue a writ of Certiorari and direction in the nature of a writ of certiorari quashing the Notice of Penalty under Section 274 read with Section 270A of the Income-tax Act, 1961 dated 18.05.2021 issued by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure-A4.
v) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.
2. Heard Sri.A.Shankar, learned Senior Counsel appearing for the petitioner and Sri.M.Dilip, learned counsel appearing for the respondents.
