TMI Blog2022 (9) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... is not maintainable. The contention of the petitioner that assessment for AY 2013-14 became time barred on 31st March, 2020 is incorrect. The time period for assessment stood extended till 30th June, 2021. The initial reassessment notice for AY 2013-14 has been issued to the petitioner within the said extended period of limitation. The Supreme Court has declared that the said reassessment notice be deemed as a notice issued under Section 148A of the Act and permitted Revenue to complete the said proceedings. In this case, the income alleged to have escaped assessment is more than 50 lakhs and therefore, the rigour of Section 149(1)(b) of the Act (as amended by the Finance Act, 2021) has been satisfied. Accordingly, the present writ petition along with the pending application is dismissed. - WPC 13102/2022 - - - Dated:- 9-9-2022 - HON'BLE MR. JUSTICE MANMOHAN AND HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA Appellant Through: Mr Salil Aggarwal Senior Advocate with Mr Madhur Aggarwal, Advocate. Respondent Through: Mr Puneet Rai, Senior Standing Counsel With Ms Adeeba Mujahid, Jr St. Counsel for Income Tax Dept. Along with Mr Nikhil Jain, Advocate. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in these facts, no interference is warranted in writ proceedings. 5. We have heard the learned counsel for the parties and perused the paper-book. This Court finds that the petitioner has not brought on record anything to prove that the reassessment proceedings are being undertaken in an arbitrary manner. 6. In the information shared with the assessee vide Notice dated 1st June, 2022 it was stated that the transaction of sale and purchase of shares held by the assessee by M/s Bagh Kothi Invest Finance Private Limited and M/s Nandi Mercantile Pvt. Ltd. on 28.03.2013 is under scrutiny. The notice states that the creditworthiness and genuineness of this transaction of sale and purchase was not established. It was further stated that the petitioner-assessee is a part of the BDR group and it had received share premium to the tune of Rs. 69.93 crores from S.K. Jain group of companies, which are in the business of providing accommodation entries in the form of inter-alia bogus share capital. In support of the information, the Assessing Officer ('AO') relied upon the report of the Investigation Wing, Delhi and a survey report in the case of BDR Group. 7. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he three entities. These shares were subsequently purchased by M/s BaghKoti Invest Finance P Ltd. and M/S Nandi Mercantiles P Ltd. on 28.03.2013. Notice u/s 131(1A) was issued to know about their creditworthiness and genuineness of such transactions along with the price at which shares of M/s Touchstone Holdings P Ltd. were acquired by them. However, no response has been received from them till date. Therefore, the provisions of Section 56(2)(viia) is attracted in the case of M/S BaghKoti Invest Finance P Ltd. and M/S Nandi Mercantiles P Ltd. and remedial action as per the provisions of the Act may be taken for the income of these shareholders for AY 2013-14. Considering the financial profile and lack of creditworthiness of above entities, provisions of Sec 68/69/69C of the Income Tax Act may also be considered w.r.t. the source of investment in hands of shareholders of M/S Touchstone Holdings P Ltd. i.e. M/S BaghKoti Invest Finance P Ltd. and M/S Nandi Mercantiles P Ltd. for A.Y. 2013-14. In addition to above, it was noted that the 92,020 shares were transferred in total by Kanak Mehta, Prem Kumar Mcheto, VA Realcon P Ltd to family member of BDR group i.e. Sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to prove that the assumption of facts made in the notice was erroneous. The assessee may also prove that no new facts came to the knowledge of the Income-tax Officer after completion of the assessment proceeding. We are not expressing any opinion on the merits of the case. The questions of fact and law are left open to be investigated and decided by the assessing authority. The appellant will be entitled to take all the points before the assessing authority. The appeals are dismissed. There will be no order as to costs. (emphasis supplied) 11. This Court is of the view that the aforesaid facts put forth are disputed questions of facts, which cannot be adjudicated by a writ court exercising jurisdiction under Article 226 of the Constitution. 12. The Supreme Court in Commissioner of Income Tax and Ors. v. Chhabil Das Agarwal, (2014) 1 SCC 603 has held that as the Act of 1961 provides 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Subsequently, Supreme Court in Ashish Agarwal (supra) held that the Section 148 notices issued between 1st April 2021 to 30th June, 2021, will be deemed to have been issued under Section 148A of the Act and therefore the notice dated 29th June, 2021, issued to the petitioner stood revived. 15. Consequently, since the time period for issuance of reassessment notice for assessment year 2013-14 stood extended until 30th June, 2021, the first proviso of Section 149 (as amended by the Finance Act, 2021) is not attracted in the facts of this case. It would be relevant to refer to the said proviso, which reads as under: Time Limit for notice. Section 149. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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