M/S Teamview Developers LLP vs. The Assessment Unit
Held
The High Court held that the petitioner was not given notice or an opportunity to explain the addition made under Section 69A of the Income Tax Act. Consequently, the assessment order and penalty notices were quashed, but without prejudice to the revenue's right to initiate fresh proceedings.
Facts
The petitioner challenged an income tax assessment order and penalty notices. The original show cause notice proposed additions under Section 69C and Section 44AB of the Income Tax Act. However, the final assessment order made an addition of Rs. 2,38,89,870/- as unexplained money under Section 69A, which was not part of the initial show cause notice.
Key Issues
The key legal issue was whether an assessment order making an addition under a section (Section 69A) not proposed in the show cause notice, thereby denying the assessee an opportunity to respond, is valid.
Sections Cited
Section 143(3), Section 144B, Section 69C, Section 44AB, Section 69A, Section 271AAC(1), Section 272A(1)(d), Section 153(6)
AI-generated summary — verify with the full judgment below
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HC-KAR
CNR: KAHC010280512026 NC: 2026:KHC:46021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF AUGUST, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 12495 OF 2026 (T-IT)
BETWEEN:
M/S TEAMVIEW DEVELOPERS LLP A LIMITED LIABILITY PARTNERSHIP REP. BY ITS AUTHORIZED REPRESENTATIVE, MR. B R VINOD, HAVING REGISTERED OFFICE AT 48, 3RD FLOOR, HITANANDA II, LAVELLE ROAD, BENGALURU 560 001. …PETITIONER (BY SRI. HEMANTH V PAI, ADVOCATE A/W SMT. NAMITHA P., ADVOCATE)
AND:
THE ASSESSMENT UNIT NATIONAL FACELESS ASSESSMENT CENTRE, REP. BY ADDL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, INCOME TAX DEPARTMENT, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI 110 003. VANAMALA N Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010280512026 NC: 2026:KHC:46021
INCOME TAX OFFICER, WARD - 1(2)(1), 80 FEET
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