J. Krishna Reddy Vs Additional/Joint/Deputy ACIT/ITO (Karnataka High Court)
Ex Parte Reassessment & Penalty Orders Set Aside; One More Opportunity Granted to File Reply to s.144 Notice
The Karnataka High Court, in J. Krishna Reddy vs. NFAC & Ors. (W.P. No. 25129 of 2022, order dated 02-Dec-2025), set aside the reassessment order u/s 147 r/w ss.144 & 144B and consequential penalty orders u/s 270A & u/s 271AAC(1) for AY 2017-18, holding that the Assessee was denied effective opportunity of hearing.
The Court noted that the Assessee had failed to respond to the notice u/s 144 dated 28-02-2022, but accepted the explanation that such failure was due to ill-health and bona fide, unavoidable circumstances. Observing that the Assessee sought one more opportunity to place material and documents on record, the Court held that the ends of justice warranted setting aside the ex parte orders.
Accordingly, all impugned assessment and penalty orders were quashed, and the matter was remanded to the Assessing Officer for fresh consideration from the stage of filing reply to the s.144 notice, with liberty to the Assessee to submit 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
