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
