Mr. Dharan v. Purti Parab

IN THE HIGH COURT OF JUDICATURE AT BOMBAYPURTIPRASAD ORDINARY ORIGINAL CIVIL JURISDICTIONPARABDigitally signed byPURTI PRASADPARABDate: 2023.10.0718:21:03 +0530WRIT PETITION NO. 1551 OF 2022 Pebble Bay Developers Pvt. Ltd. ….Petitioner V/s. Assistant Commissioner of Income Tax, Circle 13(1)(2) and Anr. …Respondents ALONGWITH WRIT PETITION NOS. 3661, 3719, 3821, 3854, 3978, 4002, 4005, 4019,4035, 4123, 4167, 4195, 4236, 4297, 4404, 4421, 4429, 4460, 4462, 4543,4590, 4604, 4774, 4786, 4937, 4969, 4973, 5002, 5011, 5023, 5076, 5077,5079, 5106, 5115, 5153, 5205, 5236, 5267, 5272, 5306, 5350 OF 2022 ALONGWITH WRIT PETITION (L) NOS. 27807, 27955, 29297, 31564, 34456, 35587,35606, 35609, 35610, 35626, 35923, 36406, 36920, 36923, 36935, 38447OF 2022 ALONGWITH WRIT PETITION NOS. 2, 89, 154, 377, 441, 460, 574, 643, 849, 854, 893,1003, 1158, 1229, 1373, 1685, 1704, 1907, 1917, 1923, 1959, 2045, 2161,2255, 2296, 2314, 2400, 2405, 2408, 2443, 2447, 2457, 2462, 2677, 2711,2784, 2855 OF 2023 ALONGWITH WRIT PETITION (L) NOS. 1697, 2291, 2352, 2765, 2791, 2798, 3902,4095, 4202, 4240, 4254, 5209, 5358, 5613, 5617, 5628, 5636, 5827, 5886,6894, 7309, 7493, 8249, 10109, 10239, 14238, 15975, 17313, 17422,19827, 26692, 26922 OF 2023 ALONGWITH INTERIM APPLICATION NO. 1562, 1560 OF 2023 ALONGWITH INTERIM APPLICATION (L) NO. 11694, 6644, 6855, 6936, 6754 OF 2023 ---- Mr. P. J. Pardiwalla, Senior Advocate a/w Mr. Sukhsagar Syal i/b Mr. Atul K.Jasani for Petitioner in WP/4973/2022. Mr. P. J. Pardiwalla, Senior Advocate a/w Mr. Jeet Kamdar i/b Mr. Atul K.Jasani for Petitioner in WP/5002/2022 and WP/1685/2023. Mr. Nishit Gandhi a/w Ms. Madhuri S. Tambe for Petitioner inWP/1551/2022, WP/5076/2022, WP/5106/2022, WP(L)/27807/2022,WP(L)/31564/2022,WP(L)/1697/2023, WP/1917/2023, WP/1923/2023,WP(L)/6894/2023, WP(L)/14238/2023 and WP(L)/26692/2023. Mr. Naresh Jain and Ms. Ujjwala Chaturvedi and Mr. Mahavir Jain i/bMs.Neha Anchlia for Petitioner in WP/3661/2022, WP/4167/2022, WP(L)/35923/2022, WP/1907/2023, WP/2255/2023 and WP(L)/4254/2023. Mr. K. Gopal a/w Mr. Om Kandalkar for Petitioner in WP/3719/2022,WP/4123/2022, WP/4421/2022, WP/4543/2022 and WP/4604/2022. Mr. Ranit Basu a/w Ms. Maitri Malde and Ms. Dua Shaikh for Petitioner inWP/3821/2022 WP/5267/2022 WP (L)/36406/2022 WP (L)/38447/2022,WP/574/2023, WP/2161/2023, WP/2296/2023, WP/2400/2023,WP/2405/2023, WP/2408/2023, WP/2447/2023 and WP(L)/7309/2023. Mr. Devendra Jain i/b Ms. Radha Halbe for Petitioner in WP/3854/2022,WP/4019/2022, WP/4774/2022, WP/4937/2022, WP/5077/2022,WP/5115/2022,WP/5272/2022,WP/377/2023,WP/893/2023,WP/2462/2023, WP/2711/2023 and WP(L)/10239/2023. Mr. Riyaz Padvekar a/w Mr. Tanzil Padvekar and Ms. Tejal Kharkar forPetitioner in WP/3978/2022, WP/4404/2022, WP/4786/2022, WP/5236/2022 and WP (L)/29297/2022. Ms. Rutuja N Pawar a/w Ms. Hetal Laghave and Ms. Sneha More forPetitioner in WP/4002/2022, WP/4005/2022, WP/4035/2022, WP/2045/2023 and WP (L)/26922/2023. Mr. Sham Walve a/w Mr. Abhishek Khandelwal for Petitioner inWP/4195/2022, WP/4460/2022, WP/4462/2022, WP/4969/2022, WP(L)/36923/2022, WP (L)/2791/2023 and WP (L)/7493/2023. Mr. Jay Bhansali i/b Mr. Ryan Saldanha for Petitioner in WP/4236/2022,WP/4297/2022 and WP/1003/2023. Mr. Dharan V. Gandhi a/w Ms. Aanchal Vyas for Petitioner in WP/4429/2022WP/4590/2022, WP(L)/27955/2022, WP(L)/34456/2022, WP/1158/2023,WP/2314/2023, WP(L)/4202/2023, WP(L)/5209/2023, WP(L)/5827/2023, WP(L)/17422/2023 and WP(L)/19827/2023. Ms. Aasifa Khan for Petitioner in WP/5011/2022, WP/5153/2022,WP/5350/2022, WP/89/2023 and WP/1229/2023. Mr. Anuj Kisnadvala i/b Mint and Confreres for Petitioner in WP/5023/2022WP/849/2023, WP(L)/2291/2023, WP(L)/2765/2023, WP(L)/2798/2023,WP/2855/2023, WP(L)/4240/2023 and WP(L)/5358/2023. Mr.Gunjan Kakad i/b Mint and Confreres for Petitioner in WP(L)/15975/2023. Mr. Jay Bhansali i/b Mr. Ryan Saldanha for Petitioner in WP/4236/2022,WP/4297/2022 and WP/1003/2023. Mr. Dharan V. Gandhi a/w Ms. Aanchal Vyas for Petitioner in WP/4429/2022WP/4590/2022, WP(L)/27955/2022, WP(L)/34456/2022, WP/1158/2023,WP/2314/2023, WP(L)/4202/2023, WP(L)/5209/2023, WP(L)/5827/2023, WP(L)/17422/2023 and WP(L)/19827/2023. Ms. Aasifa Khan for Petitioner in WP/5011/2022, WP/5153/2022,WP/5350/2022, WP/89/2023 and WP/1229/2023. Mr. Anuj Kisnadvala i/b Mint and Confreres for Petitioner in WP/5023/2022WP/849/2023, WP(L)/2291/2023, WP(L)/2765/2023, WP(L)/2798/2023,WP/2855/2023, WP(L)/4240/2023 and WP(L)/5358/2023. Mr.Gunjan Kakad i/b Mint and Confreres for Petitioner in WP(L)/15975/2023. Mr. Sham Walve a/w Mr. Sameer Dalal for Petitioner in WP/5079/2022 andWP/643/2023. Mr. Gautam Thacker a/w Mr Sameer Dalal for Petitioner in WP/5205/2022,WP/2/2023, WP/460/2023 and WP/1373/2023. Mr. Jay Vora for Petitioner in WP/5306/2022. Mr. Gautam Thacker i/b Ms. Jinal Shah for Petitioner in WP(L)/35587/2022, WP(L)/35606/2022, WP(L)/35609/2022, WP(L)/35610/2022 andWP(L)/35626/2022. Mr. Gautam Thacker i/b D.M. Harish and Company for Petitioner inWP/2784/2023. Mr. Satish Mody a/w Ms. Aasifa Khan for Petitioner in WP/154/2023,WP/441/2023, WP/854/2023, WP(L)/2352/2023, WP(L)/8249/2023 andWP(L)/10109/2023. Mr. Yatin Malvankar i/b Mr. Kapil Hirani for Petitioner in WP/1704/2023. Ms. Anjali Trivedi a/w Mr. Amit Karle and Mr. Harsh Gopal Khandelwal i/bMr. Vishal Thaker for Petitioner in WP/2457/2023, WP(L)/4095/2023,WP(L)/5613/2023, WP(L)/5617/2023, WP(L)/5628/2023, WP(L)/5636/2023 and WP(L)/5886/2023. Mr. Dharan V. Gandhi a/w Mr. Prateek Jha for Petitioner in WP/2677/2023. Mr. Sham Walve a/w Mr. Anupam Dighe, Mr. Hamza Lakhani andMr.Prathamesh Chavan i/b India Law Alliance for Petitioner inWP(L)/17313/2023. Mr. Akhileshwar Sharma a/w Mr. Suresh Kumar, Mr. N.C. Mohanty,Ms.Swapna Gokhale, Ms. Sushma Nagaraj, Mr. Devvrat Singh, Mr. ManojShirsat, Mr. Subir Kumar, Mr. Siddharth Chandrashekhar, Ms. SangeetaYadav, Ms. Mohinee Chougule, Ms. Sakshi Kapadia, Ms. Janhavi Hirlekarand Ms. Sruti Kalyanikar for Respondents – Revenue. CORAM : K.R. SHRIRAM & NEELA GOKHALE, JJ. DATED : 4[th] OCTOBER 2023 P.C. : 1.These are Petitions which relate to Assessment Year 2016-2017 or 2017-2018. 2.Counsels state that in all these Petitions the issue of impropersanction having been obtained has been raised among other grounds, in thepetition as well as during the hearing. Counsels state that the issue ofimproper sanction has been decided by this Court in the case of SiemensFinancial Services Private Limited v. Deputy Commissioner of Income Taxand Others[1], wherein the Court has held that for Assessment Year 2016-2017, the sanction should have been given under Section 151(ii) and notunder Section 151(i) of the Income Tax Act, 1961 (“the Act”) andconsequently the sanction is invalid. The Court has stated that in view ofthe invalid sanction, the notice issued itself will be invalid and has to bequashed. We would also add, if the notice has to be quashed, ifthere is an assessment order passed subsequently, thoseassessment orders having been passed relying on an incorrectsanction, will also have to be quashed. Ordered accordingly. 3.In view of the above, all consequential notices/demands issued 1 Writ Petition No. 4888 of 2022 Dated 25[th] August 2023. under Section 156 or 271 of the Act will also have to be quashed. Orderedaccordingly. 4. All Petitions disposed. 5. Counsels further state that the findings in Siemens FinancialServices Private Limited (supra) will squarely apply to the Assessment Year2017-2018 as well. Therefore, all such notices issued for Assessment Year2017-2018, the assessment orders and the consequential orders are alsoquashed and set aside. 3.In view of the above, all consequential notices/demands issued 1 Writ Petition No. 4888 of 2022 Dated 25[th] August 2023. under Section 156 or 271 of the Act will also have to be quashed. Orderedaccordingly. 4. All Petitions disposed. 5. Counsels further state that the findings in Siemens FinancialServices Private Limited (supra) will squarely apply to the Assessment Year2017-2018 as well. Therefore, all such notices issued for Assessment Year2017-2018, the assessment orders and the consequential orders are alsoquashed and set aside. 6. We clarify that all other grounds could be raised by the partiesat appropriate stage in any other proceeding. 7. In view of disposal of Petitions, pending Interim Applications, ifany, also stands disposed of accordingly (NEELA GOKHALE, J.) (K.R. SHRIRAM, J.)