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2022 (10) TMI 236 - HC - Income TaxReopening of assessment u/s 147 - allegation of accommodation entries and the assessee as a beneficiary - HELD THAT:- We have perused reply filed by the petitioner in response to the SCN - In the said reply, the assessee had not adverted to its replies - The reason for not adverting to its earlier replies is curious, considering this allegation was specifically recorded by AO in the SCN. The said reply dated 3rd June, 2022, also does not deal with the merits of the allegations contained in the statutory SCN as regards the nature of transactions between assessee and the third party. In its reply the assessee admitted that it had carried out a single transaction of Rs.1,50,00,000/- with M/s Surya Trading Company in the relevant year and clarified that it had no transaction with the entity M/s Mahamaya Trading Company. In the reply furnished on 16th April, 2021, the assessee annexed its ledger and bank statement which reflects a single transaction with M/s Surya Trading Company during the FY 2012-13. The assessee has not furnished any explanation in the said reply with respect to the purpose of the transaction with the said entity, though, the Department, in its notice dated 13th April, 2021, issued under Section 133(6) of the Act had specifically called upon the assessee to furnish the purpose of the transaction. No documents were filed with the said reply to evidence that the said transaction was carried out in ordinary course of business. Revenue’s contention that assessee is a beneficiary of an accommodation entry from M/s Surya Trading Company and the assessee’s contention that it was done in course of business are rival pleas and its determination is a pure question of fact, which will have to be determined by the statutory authorities after appreciation of evidence. A writ petition cannot be maintained to determine the disputed facts and therefore this petition is not maintainable at this interim stage of reassessment proceedings. Supreme Court in Commissioner of Income Tax and Ors. v. Chhabil Das Agarwal [2013 (8) TMI 458 - SUPREME COURT] has held that as the Act of 1961 provides a complete machinery for assessment/reassessment of tax, the assessee is not permitted to abandon that machinery and invoke writ jurisdiction of High Court under Article 226. The present case does not fall under the exceptional grounds on which a writ jurisdiction of the Court can be invoked. The present writ petition and pending applications are dismissed.
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