2022 (8) TMI 1434

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....e prosecution is that sale of the immovable property in the Assessment Year 2014 - 2015 which had resulted in capital gains to the petitioner. Hence the petitioner has not filed a return under the Income Tax Act, 1961. Hence, the Principal Commissioner of Income Tax, had issued a notice, dated 13/7/2017, calling upon the accused to give an explanation for not filing the income tax. The accused has filed the written submission on 9/10/2017 and the same was not acceptable. 3. Heard Mr.Rajnish Pathiyil, learned counsel for the petitioner and Mr.N.Bhaskaran, learned Special Public Prosecutor for the respondent. 4. The learned counsel appearing for the petitioner submitted that there was no valid sanction and in fact, the reply of one Shri....

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....ever, where sanction order exists, but its legality and validity is put in question, such issue has to be raised in the course of trial. Of course, in PARKASH SINGH BADAL, this Court referred to invalidity of sanction on account of non-application of mind. 10. In our view, invalidity of sanction where sanction order exists, can be raised on diverse grounds like non-availability of material before the sanctioning authority or bias of the sanctioning authority or the order of sanction having been passed by an authority not authorised or competent to grant such sanction. The above grounds are only illustrative and not exhaustive. All such grounds of invalidity or illegality of sanction would fall in the same category like the ground o....

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.... 13. In our view, having regard to the facts of the present case, now since cognizance has already been taken against the appellant by the trial Judge, the High Court cannot be said to have erred in leaving the question of validity of sanction open for consideration by the trial Court and giving liberty to the appellant to raise the issue concerning validity of sanction order in the course of trial. Such course is in accord with the decision of this Court in PARKASH SINGH BADAL and not unjustified." 8. A perusal of the sanction order would indicate that the reply of some other assessee has been considered and no show cause notice has been issued to the assessee whereas, some other assessee's reply has been taken note of while c....