Wp/11870/2022 Of Akshar Developers v. Asst Commissioner Of Income Tax Central Circle 4 (3) , Mumbai And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION (912) WRIT PETITION NO.5165 OF 2022 Avani Rasik Sontakke ….Petitioner V/s. Income Tax Officer, Ward 2 & Ors. ....RespondentsWITH(914) WRIT PETITION NO.11870 OF 2022WITH (915) WRIT PETITION NO.12312 OF 2022WITH (936) WRIT PETITION (ST.)NO.17167 OF 2023 ---- Mr. Riyaz Padvekar a/w. Mr. Tanzil Padvekar and Ms. Tejal Kharkar forpetitioner in WP/5165/2022. Ms. Ritika Agarwal a/w. Ms. Ayesha Ansari i/b. Acelegal for petitioner inWP/11870/2022 and WP/12312/2022. Mr. Devendra Jain a/w. Ms. Radha Halbe and Mr. Ashwin Jain for petitionerin WP(ST)/17167/2023. Mr. Suresh Kumar for respondents–revenue in WP/5165/2022,WP/11870/2022 and WP/12312/2022. Mr. Manoj Shirsat for respondents-revenue in WP(ST)/17167/2023. ---- CORAM : K. R. SHRIRAM & NEELA GOKHALE, JJ.DATED : 17[th] OCTOBER 2023 P.C. : 1These are Petitions which relate to Assessment Year 2016- 2017 or 2017-2018. 2Counsels state that in all these Petitions the issue of improper sanction having been obtained has been raised among other grounds, in the petition as well as during the hearing. Counsels state that the issue of improper sanction has been decided by this Court in the case of Siemens Financial Services Private Limited V/s. Deputy Commissioner of Income Tax 2/3 A.S. 912, 914, 915 & 936.WP-5165-2022& ors..doc and 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, those assessment ordershaving been passed relying on an incorrect sanction, will also have to bequashed. Ordered accordingly. 3Counsels further state that the findings in Siemens FinancialServices Private Limited (supra) will squarely apply to the Assessment Year 2017-2018 as well. Therefore, all such notices issued for Assessment Year2017-2018, the assessment orders and the consequential orders are alsoquashed and set aside. 4In view of the above, all consequential notices/demands issued under Section 156 or 271 of the Act will also have to be quashed. Orderedaccordingly. 5 All Petitions disposed. 6 We clarify that all other grounds could be raised by the parties at appropriate stage in any other proceeding. 1. (2023) 457 ITR 647 (Bom.) 3/3 A.S. 912, 914, 915 & 936.WP-5165-2022& ors..doc 7 In view of disposal of Petitions, pending interim application, if any, also stands disposed of accordingly. (NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)