Wp/13932/2023 Of Dr. Poorva Shah v. Income Tax Officer, Ward 7(1) , Pune And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYPURTIPRASAD CIVIL APPELLATE JURISDICTIONPARABDigitally signed byPURTI PRASADPARABDate: 2023.11.0911:26:54 +0530(910) WRIT PETITION NO. 3416 OF 2023 Deepak Rajaram Kukreja ….Petitioner V/s.Assistant Commissioner of Income TaxCircle - 1 and Ors.…Respondents ---- Mr. Dharan Gandhi for Petitioner.Ms. Samiksha Kanani i/b Mr. Ajeet Manwani for Respondents-Revenue. ---- AND (912) WRIT PETITION NO. 13932 OF 2023 Poorva Shah ….Petitioner V/s.Income Tax Officer, Ward 7(1),Pune and Ors.…Respondents ---- Mr. Sham Walve a/w Mr. Sameer Dalal for Petitioner.Mr. Suresh Kumar for Respondents-Revenue. ---- CORAM : K.R. SHRIRAM & DR. NEELA GOKHALE, JJ. DATED : 7[th] NOVEMBER 2023 P.C. : 1. Both these Petitions are relate to Assessment Year 2017-2018. 2.Counsels state that in both these Petitions the issue of improper sanction 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 Siemens Financial Services Private Limited v/s. Deputy Commissioner of Income Tax 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. Counsels further state that the findings in Siemens FinancialServices Private Limited (supra) will squarely apply to the Assessment Year2017-2018 as well. 3.Therefore, all such notices issued for Assessment Year 2017-2018 are quashed and set aside. 4.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. 5.In view of the above, all consequential notices/demands issuedunder Section 156 or 271 of the Act will also have to be quashed. Orderedaccordingly. 1 (2023) 457 ITR 647 (Bom) 6. Both Petitions disposed. (DR. NEELA GOKHALE, J.) (K.R. SHRIRAM, J.)