Wp/10442/2023 Of Manoj Rajendra Gupta v. Income Tax Officer-Ward 1 (1) , Nashik And Ors

1/3 461.WP-10442-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.10442 OF 2023 Manoj Rajendra Gupta ….Petitioner V/s. Income Tax Officer, Ward 1(1) & Ors. ....Respondents ---- Mr. Devendra Jain a/w. Ms. Radha Halbe for petitioner.Mr. Suresh Kumar for respondents. ---- CORAM : K. R. SHRIRAM & KAMAL KHATA, JJ.DATED : 29[th] SEPTEMBER 2023 P.C. : 1This petition relates to Assessment Year 2016-2017. 2Counsels state that in this petition, the issue of impropersanction having been obtained has been raised among other grounds.Counsels further state that the issue of improper sanction has been decidedby this Court in the case of Siemens Financial Services Private Limited V/s.Deputy Commissioner of Income Tax and Others[1], wherein the Court hasheld that for Assessment Year 2016-2017, the sanction should have beengiven under Section 151(ii) and not under Section 151(i) of the Income TaxAct, 1961 (the Act) and 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. Therefore, if the notice itself has to bequashed, the assessment order passed following the notice relying on an1. Writ Petition No.4888 of 2022 dated 25[th] August 2023 Gauri Gaekwad incorrect sanction will also has to be quashed. 3Counsels state that the findings in Siemens Financial ServicesPrivate Limited (Supra) should squarely apply to this petition as well on theissue of sanction. 4Therefore, we hereby quash and set aside notice dated 8[th] April2021 issued under Section 148 which is now treated as show cause noticeunder Section 148A(b) in pursuant of issue letter dated 27[th] May 2022 and2[nd] June 2022, order dated 26[th] July 2022 passed under Section 148A(d),notice dated 26[th] July 2022 issued under Section 148, order ofre-assessment dated 18[th] May 2023 passed under Section 147 read withSection 144B, notice of demand dated 18[th] May 2023 issued under Section156 and notices dated 18[th] May 2023 issued proposing to levy penaltyunder Section 271(1)(c), 271B and 271(1)(b) of the Act. 5At this stage, Mr. Jain states that there are various othergrounds raised in the petition and also the issues in this petition would alsobe covered by a judgment of this Court in the matter of Ashok CommercialEnterprises V/s. Assistant Commissioner of Income Taxation Central Circle –2(4)[2]. All rights and contentions are kept open. If at all petitioner isserved by fresh notice, all grounds could be raised at that stage. 2. Writ Petition No.2595 of 2021 & Ors. dated 4[th] September 2023 3/3 461.WP-10442-2023.doc 6Petition disposed. (KAMAL KHATA, J.) (K. R. SHRIRAM, J.)