Jayakumar Chelladurai vs. NFAC & Anr. (Karnataka High Court)
Reassessment & Penalty Proceedings Quashed for Non-Service of s.148 Notice; Fresh Opportunity to Reply Granted
The Karnataka High Court, in Jayakumar Chelladurai vs. NFAC & Anr. (W.P. No. 22669 of 2023, order dated 03-Dec-2025), set aside the reassessment order u/s 147 r/w ss.144 & 144B, along with the consequential computation sheet, demand notice u/s 156, and penalty notices u/s 271AA(1) & s.270A for AY 2015-16, holding that the Assessee was denied an effective opportunity of hearing.
The Court accepted the Assessee’s contention that the notice u/s 148(1) dated 29-03-2022 was not received, resulting in failure to file reply and supporting documents. Observing that the omission was due to bona fide and unavoidable circumstances, the Court held that the ends of justice required setting aside the ex parte reassessment and penalty proceedings.
Accordingly, all impugned notices and orders were quashed, and the matter was remanded to the Assessing Officer to recommence proceedings from the stage of replying to the s.148 notice, with liberty to the Assessee to file additional pleadings and documents. The Revenue was directed to proceed afresh in accordance with law after granting due opportunity
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
