Karle Homes Private Limited Vs DCIT (Karnataka High Court)
Reassessment SCN u/s 148A Quashed as Being Outside Scope of s.151A; Karnataka HC Follows Coordinate Bench Ruling
The Karnataka High Court quashed the show cause notice u/s 148A, the order u/s 148A, the consequential notice u/s 148, and the approval u/s 151 for AY 2021-22. The Court held that the impugned reassessment proceedings were squarely covered by the earlier coordinate bench decision in Ramachandra Reddy Ravi Kumar vs. DCIT (dated 28-08-2025), wherein it was held that show cause notices issued outside the framework of Section 151A are unsustainable in law.
Following the said binding precedent, the High Court ruled that the impugned notices and all consequential proceedings stood obliterated, while reserving liberty to the Revenue to seek revival depending upon the outcome of the matters pending before the Supreme Court. All other rival contentions were kept open, and no opinion was expressed on merits of the reassessment
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
In this petition, the petitioner seeks the following reliefs:
“a. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice issued under section 148(1) of the Act dated 27.03.2025 issued by the Respondent No.1 for the assessment year 2021-22 bearing DIN & Notice No. ITBA/AST/F/148A(SCN)_1/2024-25/ 1075152841(1) and the same is referred as Annexure ‘A1’.
b. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under section 148A(3) of the Act dated 29.06.2025 by the Respondent No.1 for assessment year 2021-22 bearing DIN & Notice No. ITBA/AST/F/148A/2025-26/1077995684(1) and the same is referred as Annexure ‘A2’.
c. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice issued under section 148 of the Act dated 29.06.2025 by the Respondent No.1 for assessment year 2021-22 bearing DIN & Notice No. ITBA/AST/F/148_1/2025-26/1077995995 (1) and the same is referred as Annexure ‘A3’.
d. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the approval issued under section 151 of the Act dated 29.06.2025 by the Respondent No.2 for assessment year 2021-22 bearing DIN & Notice No. ITBA/COMM/17/2025-26/107798543(1) and the same is referred as Annexure ‘A4’.
e. 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.
