GUPTA BUILDERS AND DEVELOPERS vs. ASST COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 4(3) , MUMBAI AND ORS

1/3 Corrected-907-aswp-3606-2022+.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NOS. 9955, 10555, 11121, 11469, 11552, 11866, 11871, 11915, 12313 & 14525 OF 2022 WITH WRIT PETITION NOS. 317, 2107, 2501, 2536, 2544, 5760, 5858, 7710 & 9037 OF 2023 Adil Aspi Engineer …Petitioner Versus Income Tax Officer, Ward 19(1)(1) & Ors. …Respondents Mr. Atul K. Jasani for Petitioner in WP/9955/2022. Ms. Ritika Agarwal a/w Ms. Rachna Bhanushali a/w Mr. Sandesh P. Salunkhe i/b ACE Legal for Petitioners in WP/10555/2022, WP/11552/2022,

WP/11866/2022,

WP/11871/2022, WP/11915/2022,

WP/12313/2022,

WP/2501/2023, WP/5760/2023, WP/5858/2023 and WP/7710/2023. Mr. Riyaz Padvekar a/w Mr. Tanzil Padvekar a/w Ms. Tejal Kharkar for Petitioner in WP/11121/2022. Mr. Rajesh Poojary i/b Mint and Confreres for Petitioner in WP/11469/2022. Mr. Devendra Jain a/w Mr. Ashwin Jain i/b Ms. Radha Halbe for Petitioner in WP/14525/2022. Mr. Anuj Kisnadwala i/b Mr. Govind G. Javeri for Petitioner in WP/317/2023. Mr. Suyog Bhave a/w Mr. Viraaj Y. Bhate i/b PDS Legal for Petitioner in WP/2107/2023. Dr. K. Shivram, Sr. Advocate a/w Mr. Rahul Hakani for Petitioners in WP/2536/2023 and WP/2544/2023. Ms. Ujjwala Chaturvedi for Petitioner in WP/9037/2023. Mr. Akhileshwar Sharma, Mr. Suresh Kumar, Mr. Ajeet Manwani, Mr. Manoj Shirsat, Ms. Swapna Gokhale, Ms. Sushma Nagaraj, Ms. Shilpa Goel, Ms. Samiksha Kanani and Ms. Kinjal Patel for Respondents-Revenue. CORAM: K. R. SHRIRAM & DR. N. K. GOKHALE, JJ. DATED: 15th September 2023 PC:- 1. These are the Petitions which relate to Assessment Year 2016- Gitalaxmi Note: This order is modified by a Suo-motu Speaking to Minutes Order dated 26th September 2023. Corrections are shown in bold and italic.

2/3 Corrected-907-aswp-3606-2022+.doc 2017 or 2017-2018. 2. Counsels state that in all these Petitions the issue of improper sanction having been obtained has been raised among other grounds. Counsels state that the issue of improper sanction has been decided by this Court in the case of Siemens Financial Services Private Limited v. 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. We would also add, if the notice has to be quashed even where there is an assessment order passed subsequently, those assessment orders having been passed relying on an incorrect sanction, will also have to be quashed. Ordered accordingly. 3. In view of the above, all consequential notices/demands issued under Section 156 or 271 of the Act will also have to be quashed. Ordered accordingly. 4. All Petitions disposed. 1. Writ Petition No. 4888 of 2022 dated 25th August 2023. Gitalaxmi Note: This order is modified by a Suo-motu Speaking to Minutes Order dated 26th September 2023. Corrections are shown in bold and italic.

3/3 Corrected-907-aswp-3606-2022+.doc 5. Counsels further state that the findings in Siemens Financial Services Private Limited (supra) will squarely apply to the Assessment Year 2017-2018 as well. Therefore, all such notices issued for Assessment Year 2017-2018, the assessment orders and the consequential orders are also quashed and set aside. 6. We clarify that all other grounds could be raised by the parties at appropriate stage in any other proceeding. (DR. N. K. GOKHALE, J.) (K. R. SHRIRAM, J.) Gitalaxmi Note: This order is modified by a Suo-motu Speaking to Minutes Order dated 26th September 2023. Corrections are shown in bold and italic. GITALAXMI KRISHNA KOTAWADEKAR Digitally signed by GITALAXMI KRISHNA KOTAWADEKAR Date: 2023.09.27 10:56:35 +0545