Wtax/500/2022 Of Beyond Research And Development Limited v. Joint Commissioner Of Income Tax And 2 Others

Case :- WRIT TAX No. - 500 of 2022 Petitioner :- Beyond Research And Development LimitedRespondent :- Joint Commissioner Of Income Tax And 2 OthersCounsel for Petitioner :- Ashish BansalCounsel for Respondent :- Gaurav Mahajan Hon'ble Surya Prakash Kesarwani,J.Hon'ble Jayant Banerji,J. 1. Heard Shri Ashish Bansal, learned counsel for the petitionerand Shri Manu Ghildyal, learned counsel for the respondent-Income Tax Department. 2. This writ petition has been filed praying for the followingreliefs:- "(i) issue writ, order or direction in the nature of certiorari so as to quash the notice dated30.03.2021 (Annexure-10) issued under section 148 by the Respondent No.3, as the samebeing 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 dated20.12.2021 & 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 inpursuance 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 causenotices dated 14.03.2022 & 15.03.2022 issued under by the Respondent No.2 section142(1) (Annexure 18), for the purposes of making addition by invoking section 68 of theAct 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 RespondentNos 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 AssessmentOrder 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 & 3not to proceed further towards the recovery of demand created in consequence of theimpugned assessment order dated 30.03.2022 (Annexure-24)/not treat the Petitionercompany as assessee in default during the pendency of the present writ petition." 3. Re-assessment proceeding was initiated by the assessingauthority for the Assessment Year 2017-18 for 'reason tobelieve' 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 authorityconcerned by an order dated 28.03.2022 observing in paragraph3.3.2 as under:- "3.3.2. It is pertinent to note that the Assessing Officer was in receipt of information fromthe Investigation Unit, Kanpur that during the course of investigation the assesseecompany failed to explain the cash credits during the relevant previous year, amountingto 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 theassessee company was asked to furnish the KYCs of the customers who have depositedcash amount with the company, deeds of immovable properties. purchased, details ofexpenses incurred towards development of land etc along with the details of huge amountof cash deposited under the head "customer agreement collection charges". But theassessee company failed to furnish the details of such extraordinary amount of cashcollected under this head. Thus, the source of cash credits remained unexplained.Therefore, the Assessing Officer has valid reason to believe that the income chargeable totax has escaped assessment in the case of the assessee for A.Y. 2017-18." 4. Thus, the reason to believe exists inasmuch as theinformation available in the hands of the respondents cannot besaid to be irrelevant, arbitrary or extraneous. 4. Thus, the reason to believe exists inasmuch as theinformation available in the hands of the respondents cannot besaid 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 Section246-A of the Income Tax Act, 1961.Therefore, the present writpetition is dismissed on the ground of alternative remedy. Order Date :- 25.4.2022SK