High Court of Karnataka Quashes Reassessment Notice Under Section 148A(b) of Income Tax Act, 1961 for Lack of Proper Application of Mind. Notice and Order Set Aside as Show Cause Notice Did Not Disclose Reasons for Reopening Assessment Beyond Four Years.

High Court: Karnataka High Court Bench: KALABURAGI In Favour of Accused

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2026-05-18 19:09:23

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Case Note & Summary

The petitioner, Anand Kumar Somasheshekarayya Lonarmath, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging the notice under Section 148A(b) of the Income Tax Act, 1961 dated 20.03.2022 and the order under Section 148A(d) of the Act dated 06.04.2022 issued by the Income Tax Officer, Ward-1 and TPS, Vijayapura (Respondent No.1) for the Assessment Year 2015-16. The petitioner sought a writ of certiorari to quash both the notice and the order. The petitioner was represented by Sri. Ravi Shankar S.V., Advocate, and the respondents by Sri. M Thirumalesh, Advocate. The court, presided over by Hon'ble Mr. Justice Suraj Govindaraj, heard the matter on preliminary hearing in 'B' group and delivered an oral order. The court found that the notice under Section 148A(b) did not disclose the reasons for reopening the assessment, and the order under Section 148A(d) was passed mechanically without proper application of mind. Consequently, the court allowed the writ petition, quashing the notice and order, and directed the respondents to issue a fresh notice under Section 148A(b) with proper reasons and pass a reasoned order thereafter.

Headnote

A) Income Tax - Reassessment - Section 148A(b) and 148A(d) of Income Tax Act, 1961 - Validity of Notice and Order - The petitioner challenged the notice under Section 148A(b) and order under Section 148A(d) for reassessment for AY 2015-16 on the ground that the notice did not disclose reasons for reopening and the order was passed mechanically without proper application of mind. The Court held that the notice under Section 148A(b) must contain reasons for reopening and the order under Section 148A(d) must be a reasoned order. Since the notice did not disclose reasons and the order was passed without proper application of mind, both were quashed. (Paras 1-5)

Issue of Consideration

Whether the notice under Section 148A(b) and order under Section 148A(d) of the Income Tax Act, 1961 for reassessment for Assessment Year 2015-16 are valid and sustainable in law.

Final Decision

The writ petition is allowed. The notice under Section 148A(b) of the Income Tax Act, 1961 dated 20.03.2022 bearing DIN ITBA/AST/F/148(A)(SCN)/2021-22/104109477(1) and the order under Section 148A(d) of the Act dated 06.04.2022 bearing DIN ITBA/AST/F/148A/2022-23/1042547184(1) are quashed. The respondents are directed to issue a fresh notice under Section 148A(b) with proper reasons and pass a reasoned order thereafter.

Law Points

Reassessment notice under Section 148A(b) must disclose reasons for reopening assessment
Notice under Section 148A(b) must be based on proper application of mind
Order under Section 148A(d) must be reasoned and not mechanical
Limitation for reassessment under Section 149 applies
Writ of Certiorari lies against defective reassessment proceedings

Case Details

2024 LawText (KAR) (09) 1

WP No. 201029 of 2024 (T-IT)

2024-09-27

Suraj Govindaraj

Ravi Shankar S.V. (for petitioner), M Thirumalesh (for respondents)

Anand Kumar Somasheshekarayya Lonarmath

The Income Tax Officer, Ward -1 and TPS, Vijayapura; National Faceless Assessment Centre, Delhi; The Principal Chief Commissioner of Income Tax, Bengaluru

Nature of Litigation

Writ petition challenging reassessment notice and order under Income Tax Act

Remedy Sought

Quashing of notice under Section 148A(b) dated 20.03.2022 and order under Section 148A(d) dated 06.04.2022 for Assessment Year 2015-16

Filing Reason

Notice under Section 148A(b) did not disclose reasons for reopening assessment and order under Section 148A(d) was passed mechanically without proper application of mind

Issues

Whether the notice under Section 148A(b) of the Income Tax Act, 1961 is valid when it does not disclose reasons for reopening assessment? Whether the order under Section 148A(d) of the Income Tax Act, 1961 is valid when passed mechanically without proper application of mind?

Submissions/Arguments

Petitioner argued that the notice under Section 148A(b) did not contain reasons for reopening the assessment and the order under Section 148A(d) was passed without proper application of mind. Respondents argued in support of the notice and order.

Ratio Decidendi

A notice under Section 148A(b) of the Income Tax Act, 1961 must disclose the reasons for reopening the assessment to enable the assessee to respond effectively. An order under Section 148A(d) must be a reasoned order based on proper application of mind and not passed mechanically.

Judgment Excerpts

The petitioner is before this Court seeking for the following reliefs: Issue a writ of Certiorari or direction in the nature of a writ of Certiorari quashing the notice under Section 148(b) of the Act dated 20.03.2022... Issue a Writ of Certiorari or direction in the nature of writ of Certiorari quashing the order under Section 148A(d) of the Act dated 06.04.2022...

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging the notice under Section 148A(b) dated 20.03.2022 and order under Section 148A(d) dated 06.04.2022 for Assessment Year 2015-16. The matter came up for preliminary hearing in 'B' group and was disposed of by oral order on 27.09.2024.