Bombay High Court
Ilandfs Transportation Networks ... vs Union Of India Income Tax Department ... on 22 February, 2024
Author: Neela Gokhale
Bench: K. R. Shriram, Neela Gokhale
2024:BHC-OS:3968-DB
Digitally
signed by
SHAMBHAVI 1/2 907-oswp-195-2023.doc
SHAMBHAVI NILESH
NILESH SHIVGAN
SHIVGAN Date:
2024.03.11
13:38:49
+0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO.195 OF 2023
IL & FS Transportation Networks Limited ...Petitioners
Versus
Union of India Income Tax Department
(Through the Commissioner of Income Tax
Circle 14(1)(1) ....Respondent
Mr. Akhileshwar Sharma for Respondent.
CORAM: K. R. SHRIRAM &
DR.NEELA GOKHALE, JJ.
DATED: 22nd February 2024
PC:-
1. This petition relates to Assessment Year 2018-
2019.
2. Petitioner is impugning a notice issued under Section 148 of the Income Tax Act, 1961 ("the Act") and the order passed under Section 148A(d) of the Act, both dated 25th May 2022 and the notice dated 11th March 2022 issued under Section 148A(b) of the Act. One of the grounds raised is that the sanction to pass the order under Section 148A(d) of the Act and issuance of notice under Section 148 of the Act is invalid inasmuch as the sanction has been admittedly issued by the Principal Commissioner of Income Tax ("PCIT") and not by the Principal Chief Commissioner of Income Tax (PCCIT").
3. The issue appears to be covered by the order dated 6 th February Shivgan ::: Uploaded on - 11/03/2024 ::: Downloaded on - 23/03/2024 05:10:27 ::: 2/2 907-oswp-195-2023.doc 2024 passed by this Court in the case of Vodafone Idea Limited v. Deputy Commissioner of Income Tax, Circle-5(2)(1), Mumbai & Ors.1. Mr. Sharma for Respondent agrees.
4. The impugned order and the impugned notice both dated 25 th May 2022 state that the Authority that has accorded the sanction is the PCIT, Mumbai-5. The matter pertains to Assessment Year ("AY") 2018-2019 and since the impugned order as well as the notice are issued on 25th May 2022, both have been issued beyond a period of three years. Therefore, the sanctioning authority has to be the PCCIT as provided under Section 151(ii) of the Act. The proviso to Section 151 of the Act has been inserted only with effect from 1 st April 2023 and, therefore, shall not be applicable to the matter at hand.
5. In the circumstances, as held by this Court in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors.2, the sanction is invalid and consequently, the impugned order and impugned notice both dated 25th May 2022 under Sections 148A(d) and 148 of the Act are hereby quashed and set aside.
6. Petition disposed. No order as to costs. All rights and contentions are kept open.
(DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)
1. Writ Petition No. 2768 of 2022.
2. (2023) 457 ITR 647 (Bom.).
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