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of <h1>Reopening sanction granted under wrong proviso/sub-section is invalid; related reopening notice and assessment orders are quashed</h1> HC held the reopening sanction was granted under the wrong proviso/sub-section and is therefore invalid; consequently the reopening notice issued on that ... Validity of reopening of assessment - sanction should have been given u/s 151(ii) OR u/s 151(i) - HELD THAT:- This court in the case of Siemens Financial Services Private Limited. [2023 (9) TMI 552 - BOMBAY HIGH COURT] wherein the court has held that for AY 2016-2017, the sanction should have been given u/s 151(ii) and not u/s 151(i) and consequently the sanction is invalid. The Court has stated that in view of the invalid sanction, the notice issued itself will be invalid and has to be quashed. We would also add, if the notice has to be quashed, if there is an assessment order passed subsequently, that assessment order having been passed relying on an incorrect sanction, will also have to be quashed. The findings in Siemens Financial Services Private Limited [2023 (9) TMI 552 - BOMBAY HIGH COURT] and in Alok Industries Ltd. [2024 (3) TMI 1083 - BOMBAY HIGH COURT] will squarely apply to this petition. Therefore, all notices and orders impugned in this petition are quashed and set aside. The petition concerns Assessment Year 2017-2018 and challenges the validity of sanction for issuance of notice. Relying on Siemens Financial Services Private Limited v. Deputy Commissioner of Income Tax and Alok Industries Ltd. (Writ Petns.), the court held that the sanction 'should have been given under Section 151(ii) and not under Section 151(i) of the Income Tax Act, 1961' and that, in consequence, the sanction is an 'invalid sanction.' The court stated that where the sanction is invalid, the 'notice issued itself will be invalid and has to be quashed.' All impugned notices and orders in this petition are quashed and set aside; 'all consequential notices, assessment order and the consequential orders, if any, are also hereby quashed and set aside.' The court added that if any assessment order was passed relying on the incorrect sanction it will also have to be quashed, and that other grounds may be raised at the appropriate stage in other proceedings.
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