Desai Brothers Ltd.versusassistant Commissioner Of Income Tax 7 Ors v. Itr 647 (Bom

Digitallysigned byMEERAMEERAMAHESHMAHESHJADHAVJADHAVDate:2023.10.2611:18:17+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.11184 OF 2022 Desai Brothers Ltd.VersusAssistant Commissioner of Income Tax 7 Ors. ...Petitioner ...Respondents ---- Mr. Deepa Khare a/w Mr. Upendra Lokegaonkar i/b Mint & Confreres forPetitioner.Mr. Suresh Kumar for Respondents. ---- CORAM : K. R. SHRIRAM & NEELA GOKHALE, JJ.DATED : 23[rd] OCTOBER 2023 P.C. : 1This petition relates to A.Y.2017-2018. Counsel states that in thispetition the issue of improper sanction having been obtained has beenraised amongst other grounds. Counsel state that the issue of impropersanction has been decided by this court in Siemens Financial ServicesPrivate Limited Vs. Deputy Commissioner of Income Tax & Ors.1 whereinthe court has held that for A.Y. 2016-2017 the sanction should have beengiven under Section 151(ii) and not under Section 151(i) of the Income TaxAct 1961 (the Act). Consequently, the sanction is invalid. The court hasstated that in view of the invalid sanction, the notice issued itself will beinvalid and has to be quashed. We would also add, if the notice has tobe quashed, if there is an assessment order passed subsequently, those 1(2023) 457 ITR 647 (BOM) assessment orders having been passed relying on an incorrect sanction, willalso have to be quashed. Ordered accordingly. 2Counsel further state that the findings in Siemens Financial ServicesPvt Ltd. (Supra) would squarely apply to this petition as well on the issue ofsanction. Therefore, impugned notice dated 31[st] May 2022 issued underSection 148A(b) of the Act and impugned order and impugned notice bothdated 29[th] July 2022 issued under Section 148 of the Act, are herebyquashed and set aside. 3 Petition disposed. 4 We clarify that all other grounds could be raised by the parties atappropriate stage in any other proceeding. appropriate stage in any other proceeding. (NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)