The Bombay High Court quashed reassessment notices stating that the sanction was obtained under an incorrect provision, invalidating the notices.
Bombay High Court Overturns Reassessment Notices
The Bombay High Court has quashed reassessment notices for AYs 2016-17 and 2017-18, determining that the required sanction had been wrongly obtained under Section 151(i) instead of Section 151(ii). This misapplication of law rendered the reassessment notices invalid and consequently led to the quashing of related assessment orders and demand notices.
The judgment emphasizes the necessity of compliance with statutory provisions when initiating reassessment procedures and upholds the importance of following correct legal channels for tax assessments.
This ruling provides significant insights for tax practitioners regarding procedural correctness in tax matters. Legal professionals must ensure due diligence in verifying compliance with the procedural requirements set forth in tax legislation to safeguard against such invalidation risks.
Citations
- Bombay HC (2026) HC Order Page
