AO ignores Valid Invoices and GSTR Filings: Karnataka HC Sets Aside Income Tax Order, Directs Reconsideration [Read Order]
Uncontroverted claims regarding valid invoices and return filings cannot be brushed aside in tax proceedings.
![AO ignores Valid Invoices and GSTR Filings: Karnataka HC Sets Aside Income Tax Order, Directs Reconsideration [Read Order]](https://images.taxscan.in/h-upload/2026/02/25/2126994-ao-ignores-valid-invoices-and-gstr-karnataka-hc-income-tax-order.webp "AO ignores Valid Invoices and GSTR Filings: Karnataka HC Sets Aside Income Tax Order, Directs Reconsideration [Read Order]")
Officer (AO) failed to consider the firm's reliance on valid tax invoices and GSTR filings. Also remitted the matter for fresh consideration. In a recent ruling, the Karnataka High Court has set aside an income tax order holding that the Assessing The case arises from the petitioner, Bangalore Steel Distributors, which had challenged the order-in-original dated...
Officer (AO) failed to consider the firm's reliance on valid tax invoices and GSTR filings. Also remitted the matter for fresh consideration.
In a recent ruling, the Karnataka High Court has set aside an income tax order holding that the Assessing
The case arises from the petitioner, Bangalore Steel Distributors, which had challenged the order-in-original dated 19.09.2025 (incorrectly recorded as 19.01.2025). The firm sought a writ of mandamus directing the Commercial Taxes Department to produce transaction details of its supplier, Shree Shyama Alloys Steel, including return filings and tax payments.
Santhosh Sagar Kapilavai, who appeared for the petitioner, argued that the adjudicating authority failed to consider its submission, specifically that purchases were made against valid tax invoices issued by a registered supplier.
It was also submitted that the supplier had filed GSTR-1 and GSTR-3B returns, which were reflected in its GSTR -2A
The High Court observed that the petitoners assertions remained uncontroverted and set aside the impugned order. The matter was remitted for reconsideration, with directions to provide the petitioner a fresh opportunity of hearing.
The Court also clarified that while the supplier’s return filings may be taken note of, their evidentiary value remains subject to adjudication.
The bench, Justice S. Sunil Dutt Yadav, quoted that “the petition is allowed. All contentions are kept open. Petitioner to appear before respondent No.1 without further notice on 18.03.2026, and is at liberty to produce fresh documents. “
Accordingly, the writ petition was allowed with all contentions kept open. Also, the petitioner was directed to appear before the assistant commissioner on 18.03.2026 without further notice, and Liberty was granted to produce fresh documents during the rehearing
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