Rajendra Bothmal Singhvi Vs ITO (Bombay High Court)
The Bombay High Court dealt with a writ petition relating to Assessment Year 2017–18 challenging reassessment proceedings on the ground of improper sanction under section 151 of the Income-tax Act, 1961. During the hearing, the petitioner relied on the earlier decision of the Court in Siemens Financial Services Private Limited, where it was held that for the relevant assessment year, sanction for issuance of reassessment notice was required under section 151(ii) and not under section 151(i). The Court in that case had ruled that sanction obtained under the wrong provision was invalid, rendering the reassessment notice itself void. Applying the same reasoning, the Court observed that the findings in Siemens Financial Services Private Limited squarely governed the present petition. Consequently, the sanction obtained for reopening the assessment was held to be invalid. As a result, all impugned notices were quashed. The Court further clarified that since the reassessment notice was invalid, any assessment order passed pursuant to such notice, being founded on an incorrect sanction, was also liable to be quashed. Accordingly, all consequential notices, assessment orders, and related proceedings were set aside. The petition was disposed of with a clarification that all other grounds raised by the parties were left open to be agitated at an appropriate stage in any other proceeding.
