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TMI Blog2023 (11) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... ase herein would resultantly extend to 10 (ten) years in light of the fact that the AO had in its possession inter alia books of accounts evidencing voluntary deposits in bank accounts extending to more than INR 50,00,000. Accordingly, following Acorus Unitech Wireless Pvt. Ltd. [ 2014 (3) TMI 154 - DELHI HIGH COURT] this Court is satisfied that the AO based its opinion on tangible and concrete information in the form of the Petitioner s Trust Deed; and statement of Managing Trustee that certain identified foreign contributions received by the Petitioner were utilized for a purpose divergent to its object as disclosed in the Trust Deed, and accordingly, the wrongful application of the exemption availed under Section 11 / Section 12 of the IT Act in relation to such funds would undoubtedly result in the AO forming the subjective satisfaction that the wrong availed exemption vis- -vis foreign contributions escaped income for the purpose of assessment under the IT Act. Lastly, it is a well settled position of law that an individual seeking to invoke the equitable jurisdiction of a High Court must approach this Court displaying bona fides. However, in the present case, the Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment and provide assistance to various local and national authorities in this regard. Furthermore, it has been stated that the Petitioner has conducted impactful work in diverse fora for ecological and environmental conservation. 2.2. Pertinently, on 05.10.2023, the Petitioner was granted registration under the Foreign Contribution (Regulations) Act 1976 (the FCRA ) vide a registration bearing number 231660713 for the purpose of receiving foreign contributions in the Petitioner s accounts. Pertinently, under the FCRA the Petitioner s object was declared to be Social Nature . 2.3. Thereafter, on 07.09.2022, a survey was conducted by the Respondent under Section 133 of the IT Act (the Survey ). Pertinently, it has been submitted that no incriminating materials were found during the Survey however, it is alleged that the Respondent with an ulterior motive conducted a roving and fishing enquiry against the Petitioner. In this context, the Respondent seized books of accounts / financial documents and mobiles phones belonging to the Petitioner Trust. 2.4. On 16.01.2023, the Petitioner received a letter bearing number I/21022/58(472)/2022-FCRA(MU) from the FCRA Wing, Minis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 148A, the Assessing Officer ( AO ) must have had information which suggested the escapement of tax. Reliance in this regard has been placed on a decision of the Madras High Court in Mathew Cherian (Dr.) v. ACIT (2022) 219 DTR 2. 2.9. Lastly, Ms. Aggarwal has drawn the attention of this Court to a decision dated 25.05.2023 in W.P (C) No. 7324 of 2023 . It has been submitted that in a parallel case, this Court has entertained the aforementioned writ petition and accordingly, has also granted a stay qua the proceedings. 3. On the other hand, Shri Tushar Mehta, learned Solicitor General of India appearing on behalf of the Respondent has contended as follows: 3.1. That the Impugned Proceedings were predicated on the premise that certain identified foreign income had escaped assessment. The aforesaid culminated in the issuance of the Impugned Notice. Accordingly, it is submitted that the scope of judicial review vis- -vis a notice issued under Section 147 / Section 148 of the IT Act is extremely narrow. It has been submitted that this Court exercising its writ jurisdiction ought not to test the sufficiency of reasons or correctness of reason and accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Reliance in this regard has been placed on Prestige Lights Ltd. v. SBI, (2007) 8 SCC 449. 4. We have heard the counsel(s) for the parties and are disposing of this present writ petition at the stage of admission with the consent of the parties. 5. The fulcrum of the dispute before this Court is two-fold i.e. (i) whether the AO could have initiated reassessment proceedings pursuant to Section 149(1) of the IT Act; and whether the AO had requisite material / information to arrive at a subjective satisfaction that there was an escapement of income qua the Petitioner. 6. In regard to the first issue before this Court, Mr. Mehta drew the attention of this Court to the explanation to Section 149 of the IT Act. Undoubtedly, the same clarifies that deposits in bank accounts form a part of the assets of the Petitioner, and accordingly, in the considered opinion of this Court, the arguments advanced by the Petitioner qua the expiry of limitation in relation to the issuance of the Impugned Notice cannot be sustained as the income escaped assessment extends to a sum of INR 2,23,95,787 i.e., higher that the minimum threshold of INR 50,00,000 enshrined under Section 149 of the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course. In exercising extraordinary power, therefore, a writ court will indeed bear in mind the conduct of the party who is invoking such jurisdiction. If the applicant does not disclose full facts or suppresses relevant materials or is otherwise guilty of misleading the court, the court may dismiss the action without adjudicating the matter. The rule has been evolved in larger public interest to deter unscrupulous litigants from abusing the process of court by deceiving it. The very basis of the writ jurisdiction rests in disclosure of true, complete and correct facts. If the material facts are not candidly stated or are suppressed or are distorted, the very functioning of the writ courts would become impossible. 10. Accordingly, this Court ought to have rejected this present petition on the aforementioned ground alone but, in the interest of justice has dealt with the issue(s) framed in Paragraph 5 of this Judgement above. 11. However, the Petitioner has failed to make out a case warranting the interference of this Court under Article 226 of the Constitution of India. Accordingly, this writ petition along with pending applications, if any, stands disposed of in the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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