Dr. Neela Gokhale, Jj v. Itr 647 (Bom

Digitallysigned byGAURIGAURIAMITAMITGAEKWADGAEKWADDate:2023.12.2009:41:13+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.15662 OF 2023 Wadhwa Buildcon LLP through its Partner ….Petitioner V/s. The Assistant Commissioner of Income TaxDepartment and Ors. ....Respondents ---- Mr. Sumedh S. Modak for petitioner. Mr. Ajeet Manwani a/w. Ms. Samiksha Kanani for respondents – Revenue. ---- CORAM : K. R. SHRIRAM & DR. NEELA GOKHALE, JJ.DATED : 18[th] DECEMBER 2023 DR. NEELA GOKHALE, JJ. P.C. : 1This petition relates to Assessment Year 2017-2018. Counsel statesthat in this petition the issue of improper sanction having been obtained hasbeen raised amongst other grounds. Counsel state that the issue ofimproper sanction has been decided by this court in Siemens FinancialServices Private Limited Vs. Deputy Commissioner of Income Tax & Ors.1wherein the court has held that for A.Y. 2016-2017 the sanction shouldhave been given under Section 151(ii) and not under Section 151(i) of theIncome Tax Act 1961 (the Act). Consequently, the sanction is invalid. Thecourt has stated that in view of the invalid sanction, the notice issued itselfwill be invalid and has to be quashed. We would also add, if the noticehas to be quashed, if there is an assessment order passed subsequently,those assessment orders having been passed relying on an incorrect 1. (2023) 457 ITR 647 (BOM) sanction, will also 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. 3Therefore, impugned notice dated 6[th] May 2021 issued under Section148 of the Act and impugned notice dated 27[th] May 2022 issued underSection 148A(b) of the Act and impugned show cause notice dated 26[th]May 2023 issued under Section 270A of the Act are hereby quashed and setaside. 4In view of the above, all consequential notices/demands issuedunder Section 156 of the Act will also have to be quashed. Orderedaccordingly. 5Petition disposed. 6We clarify that all other grounds could be raised by the parties atappropriate stage in any other proceeding. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)