Income Tax Officer, Ward 3(1) & Ors v. Itr 647 (Bom

Digitallysigned byGAURIGAURIAMITAMITGAEKWADGAEKWADDate:2023.12.2009:41:12+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.14805 OF 2022 Dombivli Nagari Sahakari Bank Ltd. ….Petitioner V/s. Income Tax Officer, Ward 3(1) & Ors. ....Respondents----Mr. Kumar Kale 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 P.C. : 1This petition relates to Assessment Year 2016-2017. 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 incorrectsanction, will also have to be quashed. Ordered accordingly. 1 (2023) 457 ITR 647 (BOM) 2Counsel further state that the findings in Siemens Financial ServicesPvt Ltd. (Supra) would squarely apply to this petition as well on the issue of (Supra) would squarely apply to this petition as well on the issue ofsanction. Pvt Ltd. (Supra) would squarely apply to this petition as well on the issue of (Supra) would squarely apply to this petition as well on the issue ofsanction. Pvt Ltd. (Supra) would squarely apply to this petition as well on the issue of (Supra) would squarely apply to this petition as well on the issue of 3Therefore, impugned notice dated 4[th] May 2021 issued under Section148 of the Act (now deemed to be notice under Section 148A(b),impugned order dated 26[th] July 2022 passed under Section 148A(d) of theAct and impugned notice dated 26[th] July 2022 issued under Section 148 ofthe Act are hereby quashed and set aside. 4In view of the above, all consequential notices will also have to bequashed. Ordered accordingly. 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.)