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TMI Blog2024 (5) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... his Court to exercise the extraordinary powers enshrined under Article 226 of the Constitution as none of the exigencies noted above have been met in the instant case. Therefore, we find ourselves unable to invoke writ jurisdiction to set aside the impugned order. Writ petition is dismissed and disposed of, along with pending applications, if any. - HON'BLE MR. JUSTICE YASHWANT VARMA AND HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV For the Petitioner Through: Mr. Kapil Goel and Mr. Sandeep Goel, Advs. For the Respondent Through: Mr. Sunil Agarwal, Sr.SC with Mr. Shivansh B. Pandya, Jr.SC and Mr. Utkarsh Tiwari, Adv for I.T. Dept. JUDGMENT PURUSHAINDRA KUMAR KAURAV, J. 1. The present writ petition, at the instance of the assessee, seeks to assail the order dated 22.04.2021 passed under Section 153C of the Income Tax Act, 1961 [ Act ], wherein, an amount of ₹1,62,20,000/- was added to the total income of the assessee for Assessment Year [ AY ] 2014-15. 2. The brief facts which are relevant to decide the present controversy are that on 07.11.2014, the assessee filed her Income Tax Return [ ITR ], declaring a total income amounting to ₹39,76,435 for AY 2014-15. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order on the ground of violation of principles of natural justice. He submitted that ample opportunity of hearing was not given to the assessee to file her response in the assessment proceedings. He further points out the conduct of the Revenue to substantiate the prejudice caused to the assessee on account of the belated furnishing of satisfaction note to her, only on 19.04.2021 and the assessment order which came to be passed arbitrarily and without due application of mind on 22.04.2021. He further submitted that there was an inordinate delay in initiating the Section 153C proceedings after a gap of four years from the date of search i.e., 15.12.2016 and he placed reliance on the decisions of CIT v. Calcutta Knitwears (2014) 6 SCC 444 1977., New Delhi Auto Finance P. Ltd. v. Joint CIT 2008 SCC OnLine Del 1450., Manish Maheshwari v. CIT (2007) 3 SCC 794., Kamal Nath v. CIT 2023 SCC OnLine Del 1912. Furthermore, on the aspect of maintainability of the writ petition, he placed reliance on the decisions of Godrej Sara Lee Ltd. v. Excise Taxation Officer 2023 SCC OnLine SC 95., Tata Steel Ltd v. CIT 2023 SCC OnLine Del 6987., and Micro Marbles Pvt Ltd v. ITO 2023 SCC OnLine Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was provided with the satisfaction note, which also included the details of the incriminating material and asked to furnish her objections, if any, by 20.04.2021. For the sake of clarity, the relevant extracts of which are reproduced herein:- PAN: AALPG4093L Assessment Year: Dated: DIN Letter No. : ITBA/AST/F/17/2021-22/1032522993(1) Sir/ Madam/ M/s, Subject: Supply of satisfaction note for your kind perusal and comment and respect of A.Y. 2011-12 to 2017-18 In response to your reply dated 14.04.2021, 15.04.2021 and 16.04.2021 you are hereby given opportunity to comment satisfaction note enclosed with this letter. You are reply should be reach this office positively by 20.04.2021 xxxx xxxx xxx Sub: - Satisfaction note in the case of Smt. Sunita Gupta for initiation of case u/s 153C of the I.T. Act, 1961 for A.Y. 2014-15, (PAN:AALPG4093L)- Reg. Kindly refer to the subject mentioned above. 2. In this regard, it is submitted that a search u/s 132 of the I.T. Act, 1961 was conducted on 15.12.2016 in the case of M/s Almina Textiles Pvt. Ltd. formerly known as M/s Gulab Chand Hemant Kumar Textiles Pvt. Ltd. at 153, Harsh Vihar, Pitampura, New Delhi. During search, some incrimi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure-A page no. 1 to 63 seized during search in the case of M/s Almina Textiles Pvt. Ltd. formerly known as M/s Gulab Chand Hemant Kumar Textiles Pvt. Ltd. at 153, Harsh Vihar, Pitampura, New Delhi), page 38 39 of register-1 seized at the premise of 157, Harsh Vihar, Pitampura, New Delhi in the case of Sh. Hemant Kumar Sharma if you are satisfied to initiate the proceedings u/s 153C of the I.T. Act, 1961 in the case of Smt. Sunita Gupta (PAN: AALPG4093L) then after recording your satisfaction the same may be initiated. [Emphasis supplied] 14. On 21.04.2021, the assessee filed her reply and thereafter, on 22.04.2021, the impugned order was passed. The relevant extracts of which are reproduced herein below:- 7. On the basis of the statement of Sh. Hemant Kumar Sharma recorded on 06.12.2018 u/s 131 (1) of the I.T. Act, 1961 and incriminating material Register-1 (page no. 39) as discussed above, it is clear that assessee has made payment of Rs. 1,62,20,000/- in cash for property. Therefore, the assessee has been asked vide notice u/s 142(1) of the I.T. Act, 1961 dated 04.03.2021, to furnish detail of immovable properties owned, acquired/ constructed or sold by him whether in individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifying that the valuation of the property on that date is genuine. The same would further corroborate the claim of the assessee in relation to valuation of the property . 7.3 The reply filed by assessee perused but not found tenable and hereby rejected on the following grounds:- 1. There was availability of incriminating material well within the meaning of incriminating material in the form of document seized (Regisgter-1, page no. 39) for recording satisfaction note before issuing notice u/s 153C. The provisions of section 153C of the I.T. Act, 1961 is reproduced as under :- person where the assessing officer is satisfied that any money, bullion, jewellery or other valuable articles or things seized or requisitioned belongs to or any books of accounts or documents seized or requisitioned pertain to or any information contained therein relates to a person other than person referred to in section 153A, then, the books of accounts or documents or assets seized or requisitioned shall be handed over to the assessing officer having jurisdiction over such other person and that assessing officer shall proceed against each other person and issue such other person notice to assess such pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. Further copy of satisfaction note has also been provided to assessee. Assessee remains silent during assessment proceedings and finally filed its reply 14.04.2021 and 21.04.2021. It is pertinent to mention here that the case under consideration is time-barred by 30.04.2021. 6. In the seized document page no. 39 of register-1 is clearly mentioned that there is cash transaction of Rs. 1,62,20,000/- in the same row where the name of the assessee is mentioned. 7. This type of practice is generalized in nature in the area Pitampura, where cash payment are being made by the purchaser over and above the value of circle rate as well as sale consideration mentioned in the sale deed. In view of the above, it is evident that explanation filed by assessee has no substance and not satisfactory for the purpose of provisions of Section 69A of the Act. Therefore, amount of Rs. 1,62,20,000/- is treated as deemed income of assessee as unexplained money u/s 69A and hereby added to the income. The tax will be calculated as per the provisions of section 115BBE @ 30% of the I.T. Act, 1961. (Addition-Rs. 1,62,20,000/-) [Emphasis supplied] 15. As it is ex-facie evident from the perusal of the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2009, decided on January 8, 2015) (2015) 372 ITR 333 (Delhi) where it was observed that (page 336): Having regard to the decision in Manish Maheshwari v. Asst. CIT (2007) 289 ITR 341 (SC) this court is of the opinion that the satisfaction note in the present case meets with the requirements of law. So far as the question of delay is concerned, the court is of the opinion that in the facts and circumstances of the present case, it cannot be held that there was any delay in recording the satisfaction note. The assessment of the searched person was completed on December 31, 2001. The satisfaction note was recorded on May 30, 2002, i.e., just about five months after the date of completion of the searched person. Notice was issued on June 3, 2002, immediately after the satisfaction note was recorded to the present assessee. Having regard to the declaration of law made by the Supreme Court which specified three possible points in time when notice under section 158BD can be issued to third party/assessee, on the basis of material found on the premises of the searched person, the period of five months spent by the Assessing Officer of the searched person in finalizing the satisfaction no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bear in consideration the scope, extent and complexity of the investigation and enquiry which may have preceded the initiation of proceedings under Section 153C. However, we find ourselves unconvinced to hold in favour of the petitioner on this score for reasons which follow. [Emphasis supplied] 18. Additionally, on the question of maintainibility of the writ petition, wherein, the alternate efficacious remedy exists, the assessee placed reliance on the decisions of Godrej Sara Lee Ltd. (supra), Tata Steel Ltd (supra) and Micro Marbles Pvt Ltd (supra). There is no doubt over the principles that emerged in the abovenoted decisions as well as the principles crystallized in the decisions of the Supreme Court in the cases of Whirpool Corporation v. Registrar of Trademarks, Mumbai (1998) 8 SCC 1., and Harbanslal Sahni v. Indian Oil Corporation Ltd (2003) 2 SCC 107. Furthermore, in the case of Radha Krishan Industries v. State of Himachal Pradesh Ors 2021 SCC OnLine SC 334., wherein, the Supreme Court has summarized the principles governing the exercise of writ jurisdiction by the High Court in the presence of an alternate remedy and observed as follows:- 27. The principles of law wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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