Kishore Narayan Patil v. Income Tax Officer Ward 4 Panvel And ORS
2023:BHC-AS:28802-DB 1/2 458.WP-9561-2023.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION WRIT PETITION NO.9561 OF 2023 Kishore Narayan Patil ....Petitioner V/s.
Income Tax Officer, Ward 4 & Ors.
....Respondents ---- Ms. Radha Halbe for petitioner.
Mr. Ajeet Manwani a/w. Ms. Samiksha Kanani for respondents. ---- CORAM : K. R. SHRIRAM & KAMAL KHATA, JJ.
DATED : 29th SEPTEMBER 2023 P.C. :
This petition relates to Assessment Year 2016-2017. Counsels state that in this petition, the issue of improper sanction having been obtained has been raised among other grounds. Counsels further 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 and Others1, wherein the Court has held that for Assessment Year 2016-2017, the sanction should have been given under Section 151(ii) and not under Section 151(i) of the Income Tax Act, 1961 (the Act) and consequently, the sanction is invalid. The Court has stated that in view of the invalid sanction, the notice issued itself will be invalid and has to be quashed. Therefore, if the notice itself has to be quashed, the assessment order passed following the notice relying on an
1. Writ Petition No.4888 of 2022 dated 25th August 2023 Gauri Gaekwad
2/2 458.WP-9561-2023.doc incorrect sanction will also has to be quashed. Counsels state that the findings in Siemens Financial Services Private Limited (Supra) should squarely apply to this petition as well on the issue of sanction.
Therefore, we hereby quash and set aside order dated 25th July 2022 passed under Section 148A(d), notice dated 26th July 2022 issued under Section 148, notice dated 29th June 2021 issued under Section 148 which is now treated as show cause notice under Section 148A(b) in pursuant of issue letter dated 30th May 2022 and assessment order passed under Section 147 read with Section 144B, notice of demand issued under Section 156, show cause notice initiating penalty under Section 271(1)(b) and show cause notice initiating penalty under Section 274 read with Section 271(1)(c) of the Act all dated 17th May 2023. Petition disposed.
(KAMAL KHATA, J.) (K. R. SHRIRAM, J.) Gauri Gaekwad