Vodafone Idea Limited v. In The Circumstances, As Held By This Court In Siemens Financial

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.3115 OF 2024 Pradeep Himatlal ShahVersusIncome Tax Officer Ward 3(2), Kalyan & Ors. …Petitioner …Respondents Mr. Dharan Gandhi, with Ms. Anchal Vyas, for Petitioner.Mr. Suresh Kumar, for Respondents-Revenue. CORAM:K. R. SHRIRAM &DR. NEELA GOKHALE, JJ.DATED:4[th] March 2024 PC:- 1.This petition relates to Assessment Year 2018- 2019. 2.Petitioner is impugning a notice issued under Section 148 ofthe Income Tax Act, 1961 (“the Act”) and the order passed underSection 148A(d) of the Act, both dated 7[th] April 2022 and the noticedated 21[th] March 2022 issued under Section 148A(b) of the Act. Oneof the grounds raised is that the sanction to pass the order underSection 148A(d) of the Act and issuance of notice under Section 148of the Act is invalid inasmuch as the sanction has been admittedlyissued by the Principal Commissioner of Income Tax (“PCIT”) and notby the Principal Chief Commissioner of Income Tax (PCCIT”). 3.Counsel for Petitioner states this petition is covered by theorder dated 6[th] February 2024 passed by this Court in the case ofGaikwad RD Vodafone Idea Limited v. Deputy Commissioner of Income Tax, Circle-5(2)(1), Mumbai & Ors.[1]. Counsel for Respondents agrees. 4.The impugned order and the impugned notice both dated 7[th]April 2022 state that the Authority that has accorded the sanction isthe PCIT, Thane-1. The matter pertains to Assessment Year (“AY”)2018-2019 and since the impugned order as well as the notice areissued on 7[th] April 2022, both have been issued beyond a period ofthree years. Therefore, the sanctioning authority has to be the PCCITas provided under Section 151(ii) of the Act. The proviso to Section151 of the Act has been inserted only with effect from 1[st] April 2023and, therefore, shall not be applicable to the matter at hand. 5.In the circumstances, as held by this Court in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax &Ors.[2], the sanction is invalid and consequently, the impugned orderand impugned notice both dated 7[th] April 2022 under Sections148A(d) and 148 of the Act are hereby quashed and set aside. 6.Petition disposed. No order as to costs. All rights andcontentions are kept open. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.) 1. Writ Petition No. 2768 of 2022.2. (2023) 457 ITR 647 (Bom.).