Beyond Research And Development Limited V. Joint Commissioner Of Income Tax And 2 Others

WTAX/500/2022

AI Insights

The case involves Beyond Research And Development Limited, the petitioner, challenging various notices and an assessment order issued by the Income Tax Department, represented by the Joint Commissioner of Income Tax and others, the respondents. The petitioner sought to quash notices under sections 148 and 142(1) of the Income Tax Act, alleging they were based on 'change of opinion' and pursued invalid proceedings under section 147. The re-assessment for the Assessment Year 2017-18 was initiated based on unexplained cash credits amounting to Rs.10.86 crores. The court found that the information and reasons provided by the Income Tax Department were relevant and sufficient to justify the re-assessment. The court dismissed the writ petition, emphasizing the availability of an alternative remedy through an appeal under Section 246-A of the Income Tax Act, 1961.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 795912 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 25-04-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: GAURAV MAHAJAN; MANU GHILDYAL
• Assessee Lawyers: ASHISH BANSAL
• Keywords: Alternative remedy; Certiorari; Certiorari; Mandamus; Re-assessment; Unexplained cash credit; Writ petition
• Section: 147; 148; 142(1); 68; 246 A

Judgement Text

"Court No. - 3 Case :- WRIT TAX No. - 500 of 2022 Petitioner :- Beyond Research And Development Limited Respondent :- Joint Commissioner Of Income Tax And 2 Others Counsel for Petitioner :- Ashish Bansal Counsel for Respondent :- Gaurav Mahajan Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. 1. Heard Shri Ashish Bansal, learned counsel for the petitioner and Shri Manu Ghildyal, learned counsel for the respondent- Income Tax Department. 2. This writ petition has been filed praying for the following reliefs:- \"(i) issue writ, order or direction in the nature of certiorari so as to quash the notice dated 30.03.2021 (Annexure-10) issued under section 148 by the Respondent No.3, as the same being illegal and invalid being based on 'change of opinion'; (ii) issue writ, order or direction in the nature of certiorari so as to quash the notice dated 20.12.2021 & 28.02.2022 issued under section 142(1) by the Respondent No.2 (Annexures - 14 & 16), for the purposes of making reassessment and that too in pursuance of an invalid proceedings under section 147 of the Act; (iii) issue writ, order or direction in the nature of certiorari so as to quash the show cause notices dated 14.03.2022 & 15.03.2022 issued under by the Respondent No.2 section 142(1) (Annexure 18), for the purposes of making addition by invoking section 68 of the Act and that too in pursuance of an invalid proceedings under section 147 of the Act; (iv) issue writ, order or direction in the nature of mandamus commanding the Respondent Nos 2 & 3 not to proceed further during the pendency of the present writ petition; (v) award cost of petition to the petitioner; (vi) grant such other relief as is found to be admissible under law and equity. (vii) Issue a Writ, Order or Direction in the nature of Certiorari to quash the Assessment Order dated 30.03.2022 passed by Respondent No.2 (Annexure No. 24). (viii) Issue writ order or direction in nature of mandamus directing Respondent Nos.2 & 3 not to proceed further towards the recovery of demand created in consequence of the impugned assessment order dated 30.03.2022 (Annexure-24)/not treat the Petitioner company as assessee in default during the pendency of the present writ petition.\" 3. Re-assessment proceeding was initiated by the assessing authority for the Assessment Year 2017-18 for 'reason to believe' that the petitioner has unexplained cash credit of Rs.10.86 crores. The petitioner submitted objection to the 'reason to believe' which was decided by the authority concerned by an order dated 28.03.2022 observing in paragraph 3.3.2 as under:- \"3.3.2. It is pertinent to note that the Assessing Officer was in receipt of information from the Investigation Unit, Kanpur that during the course of investigation the assessee company failed to explain the cash credits during the relevant previous year, amounting to Rs. 10.86 Crores, credited in account maintained with Bank of Baroda A/c No. 25770200000271 of the assessee company. Further, during the course of investigation the assessee company was asked to furnish the KYCs of the customers who have deposited cash amount with the company, deeds of immovable properties. purchased, details of expenses incurred towards development of land etc along with the details of huge amount of cash deposited under the head \"customer agreement collection charges\". But the assessee company failed to furnish the details of such extraordinary amount of cash collected under this head. Thus, the source of cash credits remained unexplained. Therefore, the Assessing Officer has valid reason to believe that the income chargeable to tax has escaped assessment in the case of the assessee for A.Y. 2017-18.\" 4. Thus, the reason to believe exists inasmuch as the information available in the hands of the respondents cannot be said to be irrelevant, arbitrary or extraneous. 5. Against the impugned re-assessment order dated 30.03.2022, the petitioner has an alternative remedy of appeal under Section 246-A of the Income Tax Act, 1961. Therefore, the present writ petition is dismissed on the ground of alternative remedy. Order Date :- 25.4.2022 SK Digitally signed by SUSHEEL KUMAR Date: 2022.04.26 16:18:00 IST Reason: Location: High Court of Judicature at Allahabad "