Case Law Details
Palakshi Hanumanthappa Harthi Vs ITO (Karnataka High Court)
Unsigned Sanction Is No Sanction: Karnataka HC Quashes Reassessment Notices for Breach of Section 151A
The Karnataka High Court (Dharwad Bench) quashed multiple reassessment proceedings after holding that sanctions under section 151 issued without proper authority and not in conformity with section 151A are invalid in law.
In a batch of writ petitions, the assessees challenged notices issued under sections 148A(b), 148A(d) and 148, primarily on the ground that the approval/sanction under section 151 was unsigned and granted by the jurisdictional Assessing Officer, instead of being routed through the faceless and specified authority mechanism mandated under section 151A.
The Court noted that the issue was squarely covered by its earlier decision in W.P. No. 28182/2024 and connected matters. Applying the same reasoning, it held that reassessment actions initiated outside the scope of section 151A stand vitiated at inception. Consequently, all notices, sanctions and subsequent proceedings were declared non est and obliterated.
While allowing the writ petitions, the Court reserved liberty to the Revenue to revive the proceedings only if the Supreme Court ultimately upholds the Revenue’s stand in the pending matter. Until then, the reassessment actions remain quashed in toto
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
1. The petitioner – Assessee in W.P. No.107106 of 2024 is before this Court seeking quashment of the unsigned sanction dated 30.03.2024 accorded under Section 151 of the Act for the AY-2020-21 by respondent No.2 vide Annexure-A and notice dated 30.03.2024 issued under Section 148 of the Act for the AY-2020-21 by respondent No.1 vide Annexure-A1;
1.1. The petitioner – Assessee in W.P. No.107107 of 2024 is before this Court seeking quashment of the notice dated 09.08.2024 issued under Section148A(b) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A, unsigned sanction dated 29.08.2024 accorded under Section 151 of the Act for the AY-2018-19 by respondent No.2 vide Annexure-A1, order dated 29.08.2024 issued under Section 148A(d) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A2, notice dated 29.08.2024 issued under Section 148 of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A3;
1.2. The petitioner – Assessee in W.P. No.107108 of 2024 is before this Court seeking quashment of the notice dated 07.08.2024 issued under Section148A(b) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A, unsigned sanction dated 28.08.2024 accorded under Section 151 of the Act for the AY-2018-19 by respondent No.2 vide Annexure-A1, order dated 29.08.2024 issued under Section 148A(d) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A2, notice dated 29.08.2024 issued under Section 148 of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A3;
1.3. The petitioner – Assessee in W.P. No.107122 of 2024 is before this Court seeking quashment of the notice dated 07.08.2024 issued under Section148A(b) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A, unsigned sanction dated 28.08.2024 accorded under Section 151 of the Act for the AY-2018-19 by respondent No.2 vide Annexure-A1, order dated 29.08.2024 issued under Section 148A(d) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A2, notice dated 29.08.2024 issued under Section 148 of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A3;
1.4. The petitioner – Assessee in W.P. No.107123 of 2024 is before this Court seeking quashment of the notice dated 07.08.2024 issued under Section148A(b) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A, unsigned sanction dated 28.08.2024 accorded under Section 151 of the Act for the AY-2018-19 by respondent No.2 vide Annexure-A1, order dated 29.08.2024 issued under Section 148A(d) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A2, notice dated 29.08.2024 issued under Section 148 of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A3;
1.5. The petitioner – Assessee in W.P. No.107124 of 2024 is before this Court seeking quashment of the notice dated 07.08.2024 issued under Section148A(b) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A, unsigned sanction dated 27.08.2024 accorded under Section 151 of the Act for the AY-2018-19 by respondent No.2 vide Annexure-A1, order dated 27.08.2024 issued under Section 148A(d) of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A2, notice dated 27.08.2024 issued under Section 148 of the Act for the AY-2018-19 by respondent No.1 vide Annexure-A3.
2. Heard Sri Hemanth Pai, Sri Lochana S.Babu & Shashank S.Hegde, learned counsels appearing for the petitioner and Sri Thirumalesh & Smt Roopa, learned counsels representing the respondents in all these petitions.
3. The grounds projected in the subject petitions in support of the prayer quoted supra are identical to the ones considered by this Court in W.P.No.28182/2024 and connected matters, disposed on 28.08.2025.
4. In the light of the issue being similar and the reasons rendered therein becomes applicable to the cases at hand, the petitions deserve to be disposed on the same lines. Therefore, I pass the following:
ORDER
i. The unsigned sanction dated 30.03.2024 vide Annexure-A and notice dated 30.03.2024 vide Annexure-A1, for the AY-2020-21 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107106 of 2024 stand quashed.
ii. The notice dated 09.08.2024 vide Annexure-A, unsigned sanction dated 29.08.2024 vide Annexure-A1, order dated 29.08.2024 vide Anneuxre-A2, notice dated 29.08.2024 vide Annexure-A3, for the AY-2018-19 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107107 of 2024 stand quashed.
iii. The notice dated 07.08.2024 vide Annexure-A, unsigned sanction dated 28.08.2024 vide Annexure-A1, order dated 29.08.2024 vide Anneuxre-A2, notice dated 29.08.2024 vide Annexure-A3, for the AY-2018-19 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107108 of 2024 stand quashed.
iv. The notice dated 07.08.2024 vide Annexure-A, unsigned sanction dated 28.08.2024 vide Annexure-A1, order dated 29.08.2024 vide Anneuxre-A2, notice dated 29.08.2024 vide Annexure-A3, for the AY-2018-19 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107122 of 2024 stand quashed.
v. The notice dated 07.08.2024 vide Annexure-A, unsigned sanction dated 28.08.2024 vide Annexure-A1, order dated 29.08.2024 vide Anneuxre-A2, notice dated 29.08.2024 vide Annexure-A3, for the AY-2018-19 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107123 of 2024 stand quashed.
vi. The notice dated 07.08.2024 vide Annexure-A, unsigned sanction dated 27.08.2024 vide Annexure-A1, order dated 27.08.2024 vide Anneuxre-A2, notice dated 27.08.2024 vide Annexure-A3, for the AY-2018-19 issued by the jurisdictional Assessing Officer outside the scope of Section 151A of the Act stand obliterated. All further proceedings initiated thereto, challenged in W.P. No.107124 of 2024 stand quashed.
vii. Liberty is reserved to the respondents – revenue to revive the petitions in the event, the Apex Court would hold in favour of the Revenue in the matter pending before it.
viii. With the aforesaid liberty and to the aforesaid extent, the petitions are allowed.
ix. Contentions of both the parties except the one noted hereinabove shall remain open to be considered in the event revival of these petitions would become necessary.
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