HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND INCOME TAX APPEAL No. 261 OF 2021 C/W INCOME TAX APPEAL No. 264 OF 2021 IN ITA No. 261/2021 BETWEEN:

1. PR. COMMISSIONER OF INCOME TAX -2 BMTC COMPLEX, KORAMANGALA, BENGALURU.

2. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 4(2)(1), BMTC COMPLEX, KORMANGALA, Digitally signed BENGALURU.

by VALLI …APPELLANTS MARIMUTHU (BY SRI. SANMATHI E.I., SENIOR STANDING COUNSEL)

Location:

HIGH COURT OF AND:

KARNATAKA M/S. YESHODA ELECTRICALS, NO.25, Y.NO.8/2, AMBALIPURA VILLAGE, SARJAPURA ROAD, BENGALURU - 560 034 PAN. AAAFY0757E …RESPONDENT (BY SMT. KRISHIKA VAISHNAV, ADVOCATE FOR SRI. A.MAHESH CHOWDHARY, ADVOCATE)

HC-KAR THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03.02.2021 PASSED IN ITA No.1176/BANG/2016, FOR THE ASSESSMENT YEAR 2007-2008, PRAYING TO DECIDE THE FOREGOIND QUESTION OF LAW AND OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. SET ASIDE THE APPELLATE ORDER DATED 03.02.2021 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS No.ITA No.1176/BANG/2016 (ANNEXURE-A) FOR A.Y.2007-08 & ETC.

IN ITA No. 264/2021 BETWEEN:

1. PR.COMMISSIONER OF INCOME TAX-2 BMTC COMPLEX, KORAMANGALA, BENGALURU.

2. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 10 (1) BMTC COMPLEX, KORMANGALA, BENGALURU.

...APPELLANTS (BY SRI. SANMATHI E.I., SENIOR STANDING COUNSEL)

AND:

M/S. YESHODA ELECTRICALS, NO.25, Y.NO.8/2 AMBALIPURA VILLAGE, SARJAPURA ROAD, BENGALURU - 560 034 PAN. AAAFY0757E ...RESPONDENT (BY SMT. KRISHIKA VAISHNAV, ADVOCATE FOR SRI. A.MAHESH CHOWDHARY, ADVOCATE)

HC-KAR THIS ITA IS FILED UNDER SECTION 260A OF THE INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03.02.2021 PASSED IN ITA No.1175/BANG/2016, FOR THE ASSESSMENT YEAR 2007-2008, PRAYING TO DECIDE THE FOREGOIND QUESTION OF LAW AND OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. SET ASIDE THE APPELLATE ORDER DATED 03.02.2021 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, 'C' BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEE'S CASE, IN APPEAL PROCEEDINGS No.ITA No.1175/BANG/2016 (ANNEXURE-A) FOR A.Y.2007-08 & ETC.

THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.G.PANDIT and HON'BLE MR. JUSTICE K. V. ARAVIND

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE K.V. ARAVIND)

Heard Sri E.I. Sanmathi, learned Senior Standing Counsel for the appellants-Revenue, and Smt. Krishika Vaishnav, learned counsel for Sri A. Mahesh Chowdhary, respondent-

Assessee.

2. These appeals filed by the Revenue are under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), impugning the common order dated 03.02.2021 in HC-KAR ITA No.1175/Bang/2016 and ITA No.1176/Bang/2016 for the Assessment Year 2007-08, passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Bengaluru (hereinafter referred to as the ‘ITAT’).

3. Both appeals are admitted to consider the following substantial questions of law:

"(1) "Whether the Tribunal was right in law in quashing re-assessment order by holding that notice issued is unsigned when same is curable under section 292B of the Act which provides for cure of any mistake, defect or omission in such notice"?

(2) "Whether the order passed by Tribunal is perverse in law as Tribunal has failed to observe that re- assessment order passed in present case is valid since assessee failed to raise the issue of immediately on receipt of notice under section 148 of the Act but deliberately raised issue of validity or notice only after one so that assessing authority had no time to re-issue the same within period of limitation"?

(ii) "Whether on the facts and in the circumstances of the case, the Tribunal's order can be said as perverse i