Delhi High Court
Devshi Earthmovers Private ... vs Assistant Commissioner Of Income ... on 11 February, 2022
$~6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 2176/2022
DEVSHI EARTHMOVERS PRIVATE LIMITED ..... Petitioner
Through Mr.Salil Kapoor, Advocate.
versus
ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL
CIRCLE-8, DELHI & ANR. ..... Respondents
Through Mr.Sunil Agarwal, Advocate.
% Date of Decision: 11th February, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
JUDGMENT
MANMOHAN, J: (Oral)
C.M.No.6247/2022
Exemption allowed, subject to all just exceptions.
Accordingly, the applications stand disposed of.
W.P.(C) No.2176/2022
1. The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the notice dated 28th
March, 2021 issued under Section 148 of the Income Tax Act, 1961
(hereinafter referred to as the 'Act') and the order dated 04th January, 2022,
whereby the objections were disposed of. Petitioner also seeks directions to
the Respondents to forebear from giving effect to and/or taking any step
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:14.02.2022
20:17:37
whatsoever pursuant to and/or in furtherance of the said purported notice
under Section 148 of the Act and/or in any proceedings initiated thereunder
for the Assessment Year 2014-15.
3. Learned counsel for the Petitioner states that the impugned notice
dated 28th March 2021 issued by the Respondent No. 1 under Section 148 of
the Act is illegal, bad in law, barred by limitation, without jurisdiction and
liable to be quashed as the same has been issued without there being any
valid reasons to believe that income has escaped assessment.
4. He states that Respondent No.1 has erred in not appreciating that in
accordance with Section 147, no notice under Section 148 of the Act could
have been issued in the instant case after expiry of four years from the end
of the relevant assessment year in the absence of any failure on part of the
Petitioner to disclose truly and fully all material facts.
5. Issue notice. Mr.Sunil Agarwal, learned counsel accepts notice on
behalf of the Respondents. He refers to the reasoning for re-opening of the
assessment under Section 147 of the Act. The relevant portion of the said
order is reproduced hereinbelow:-
"2. Brief details of information received by the AO: ..............
A.) M/s Anjali Supplier Pvt. Ltd. and its related entities have opened
various bank accounts. Since the opening of these bank account all credit
and debit transactions have been through transfer from these accounts in
the name of the entities as mentioned below in the range of Rs.20 lacs to
Rs. 90 lacs.
1. Shivarpan Vanijya Pvt. Ltd.
2. Safalata lnfotech Pvt. Ltd.
3. Nivaanam Tie up Pvt. Ltd.
4. Sapphire Global Finance Ltd.
5. Avenue Dealers Pvt. Ltd.
6. Amity Dealcom Pvt. Ltd.
7. Sincere Vintrade Pvt. Ltd.
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:14.02.2022
20:17:37
8. Frankdeal Marketing Pvt. Ltd.
9. Devatma Distributors Pvt. Ltd.
xxx xxx xxx
3) Analysis of information collected/received: ............
d) It is seen that bank accounts of suspicious entities got credited through
cash and subsequent debited by transferring funds to intermediaries, some
of which are paper companies which are formed with the intent to
layering of funds leaving minimum balance in the accounts. During the
process of layering funds are transferred to real beneficiaries through
intermediary companies.
After identifying beneficiaries to whom the funds were transferred through
some intermediary companies, it was found that M/s Devshi Earthmovers
Pvt. Ltd. is one of the beneficiary company and the following bank entry
shows the same.
Date Shell Entity Beneficiary Amount FY
3/26/2014 ADVANCE DEVSHI 3,000,000 2014
SHOPPERS PVT EARTHMOVERS
LTD, IDBI, PVT LTD
60102000114035
3/27/2014 ADVANCE DEVSHI 1,000,000 2014
SHOPPERS PVT EARTHMOVERS
LTD, IDBI, PVT LTD
60102000114035
xxx xxx xxx
4) Finding of AO: On perusal of the information received, analysis of the
information as well bank accounts, it is found that M/s Devshi
Earthmovers Pvt. Ltd. is the real beneficiaries of the fund which has been
layered through various intermediaries some of which are paper company
form with the intent of layering of funds. It is in this manner of layering of
the funds by which the beneficiaries have brought their unaccounted
income into the books of accounts.
5) Basis of forming reason to believe of escapement of income: It is
evident the assessee, M/s Devshi Earthmovers Pvt. Ltd. is one of the
beneficiary company and the fund transfer from Advance Shoppers Pvt.
Ltd., IDBI, 60102000109864, amount of Rs. 40,00,000/-.
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:14.02.2022
20:17:37
In view of these facts, I have reasons to believe that the income of the
assessee by more than 1 lakh has escaped assessment as defined by
section 147 of the Act for assessment year 2014-15. The income
chargeable to tax has escaped assessment for this year by the reason of
the failure on the part of the assessee to disclose fully and truly all
material facts. Therefore, it is a fit case for the issuance of notice u/s 148
of the Act for the Financial Year 2013-14 relevant to assessment year
2014-15."
6. Mr.Agarwal is directed to file a counter-affidavit within four weeks.
Rejoinder-affidavit, if any, be filed before the next date of hearing.
7. It is directed that though the Assessing Officer may pass the
assessment order, yet the same shall be subject to the further orders to be
passed by this Court. List on 06th October, 2022.
MANMOHAN, J
NAVIN CHAWLA, J
FEBRUARY 11, 2022
KA
Signature Not Verified
By:KRISHNA BHOJ
Signing Date:14.02.2022
20:17:37
