High Court of Punjab and HaryanaCWP/5139/2024allowed

Misty Meadows Pvt Limited v. Union Of India And Others

2024-05-13Mr. Justice Sanjeev Prakash Sharma,Mrs. Justice Sudeepti Sharma19 pages

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/!020+2 02* $& The search operation ought not to be interfered with by this Court as the same denies opportunity to the revenue to derail the layering money as the same ought not to be entertained after passing of the assessment order.

CWP No. 5139 of 2024 -816. It is further submitted that the petitioner cannot be allowed to question the search after participation in pursuance to the search under Section 132 of the Act and submits that the petitioner had moved an application under Section 245C (1) of the Act before the Income Tax Settlement Commission, which was rejected on 29.03.2023 on the ground that the disclosure is not full and true and there is a deficiency in explaining the facts gathered by the department. The order of assessment is, thus, also appealable and on that count the respondents have objected to.

17.

Learned counsel for the respondents further submitted that as the panchnama mentioned the name of the petitioner upon search if any documents are received, the proceedings were required to be conducted under Section 153A(1) of the Act alone and there was no occasion to resort to provisions of Section 153C of the Act. It is further submitted that the petitioner has filed return on 29.01.2018 and notices along with questionnaire under Section 143 (2) and 143 (1) of the Act were initiated whereafter the petitioner approached the Income Tax Settlement Commission. Another notice was issued on 04.01.2024 along with documents. The petitioner did not submit its reply on merits of the case.

The Assessing Officer held that the accommodation entries were provided by the companies, which were accepted by the operators as well as the Directors, whose statements were recorded, which too provided to the petitioner. The incriminating documents reflected that the companies were clearly linked and the transactions were cleared through the paper companies after affording opportunity to the petitioner, the assessment order was passed, which does not warrant any interference.

CWP No. 5139 of 2024 -918. Learned counsel for the respondents relies on Dr. Partap Singh and another vs Director of Enforcement Foreign Exchange Regulation and others 1985 (3) SCC 72; Banda Development Authority, Banda vs Moti Lal Agarwal and others 2011 (5) SCC 394; Union of India and others vs M/s Agarwal Iron Industries 2014 (15) SCC 215; Principal Director of Income Tax (Investigation) and others vs Laljibhai Kanjibhai Mandalia 2022 (10) SCALE 100; judgment of Orissa High Court in M/s Shiva Cement Limited and others vs Director of Income Tax (Inv.), Bhubaneswar and others 2021 (439) ITR 92 and Civil Appeal arising out of SLP (C) No. 8867 of 2022 - PHR Invent Educational Society vs UCO Bank and others decided on 10.04.2024. 19.

We have heard learned counsel for the parties and have carefully gone through the judgments cited by learned counsel for the petitioner as well as learned counsel for the respondents.

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The jurisdiction of this Court under Article 226 of the Constitution of India has wide aptitude. However, time and again Hon'ble the Supreme Court and various High Courts have refused to entertain the petitions where we find that there is an efficacious remedy or considering that the questions complicate examination of facts, we are relegating the petitioner to appeal. However, this would not mean that the remedy under Article 226 is ousted. In a recent judgment Godrej Sara Lee Limited vs Excise and Taxation Officer-cumAssessing Authority 2023 AIR (SC) 781, while considering the case travelling from this Court, Hon'ble the Supreme Court has held as under:-

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