Wp/9507/2023 Of Jagdish Ishwardas Nihalani v. Assistant Commissioner Of Income Tax Circle And Ors

1/2 457.WP-9507-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO.9507 OF 2023 Jagdish Ishwardas Nihalani ….Petitioner V/s. Assistant Commissioner of Income Tax, Circle 1 & Ors. ....Respondents---- Mr. Kumar Kale for petitioner. Mr. Ajeet Manwani a/w. Ms. Samiksha Kanani 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 be 1. Writ Petition No.4888 of 2022 dated 25[th] August 2023 Gauri Gaekwad quashed, the assessment order passed following the notice relying on anincorrect sanction will also has to be quashed. 3Counsels state that the findings in Siemens Financial Services Private Limited (Supra) should squarely apply to this petition as well on theissue of sanction. 4Therefore, we hereby quash and set aside notice dated28[th] June 2021 issued under Section 148, order dated 28[th] July 2022 issuedunder Section 148A(d), notice dated 28[th] July 2022 issued under Section148 and consequential assessment order issued under Section 147 readwith Section 144 read with Section 144B, notice of demand issued underSection 156 and notice issued under Section 274 read with Section 271(1)(c) of the Act all dated 31[st] May 2023. 5Petition disposed. (KAMAL KHATA, J.) (K. R. SHRIRAM, J.)