Invalid Tax Notices Quashed: Incorrect Authority Led to Annulment of 2016-17 Assessment Year Orders by HC.

The HC quashed and set aside the notices and orders issued under Sections 148 and 148(A)(d) of the Income Tax Act for the assessment year 2016-17. The court found the notices invalid due to the incorrect sanctioning authority, as the sanction should have been granted under Section 151(ii) rather than Section 151(i). The decision was based on precedent from a previous case, and the court did not address other issues raised. No costs were awarded.

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Issues Involved:
The petition challenges the notice, order, and assessment under the Income Tax Act for the assessment year 2016-17, specifically focusing on the validity of the notice issued beyond the statutory period and the sanction granted.

Validity of Notice Beyond Statutory Period:
The petitioner challenges the notice issued by respondent no. 2 after the statutory period of four years, contending it does not follow the mandatory procedure. The petitioner relies on previous court decisions to support their argument.

Alternative Remedy and Jurisdictional Issue:
The respondents argue that the notices are legal and valid, issued following due procedure under the Act. They also raise the plea of alternative efficacious remedy. The petitioner argues that the challenge to reopening without prior approval of the Commissioner of Income Tax is fundamental and should not be dismissed based on the availability of an alternative remedy.

Sanction under Section 151:
In previous cases, it was held that the sanction for the order should have been granted under Section 151(ii) and not under Section 151(i) of the Act. The court quashes the order and notices under the Act due to the incorrect sanctioning authority, as per the decisions in related cases.

Judgment Summary:
The petition is disposed of based on the precedent set in a previous case. The orders under Section 148(A)(d) and the notices under Section 148 of the Income Tax Act are quashed and set aside, without delving into other issues raised. No costs are awarded in this matter.

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