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Baby Joy Fertility And Ivf Centre ... vs Dcit, Cir 4(2), Delhi on 22 August, 2022

Author: Manmohan

Bench: Manmohan, Manmeet Pritam Singh Arora

                              $~26
                              *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +      W.P.(C) 11715/2022
                                     BABY JOY FERTILITY AND IVF CENTRE PRIVATE LIMITED
                                                                                           ..... Petitioner
                                                        Through:     Ms.Rano Jain with Mr.Venketesh
                                                                     Chaurasia, Advocates.
                                                        versus

                                     DCIT, CIR 4(2), DELHI                                 ..... Respondent
                                                        Through:     Mr.Sanjay Kumar, Sr.Standing
                                                                     Counsel for the Revenue with
                                                                     Ms.Easha Kadian, Advocate.
                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
                                                        ORDER

% 22.08.2022 C.M.No.34832/2022 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of.

W.P.(C) No.11715/2022 & C.M.No.34831/2022 Present writ petition has been filed challenging the order dated 29th June, 2022 passed under Section 148A(d) of the Income Tax Act, 1961 [for short 'the Act'] and the notice dated 30th June, 2022 issued under Section 148 of the Act for the Assessment Year 2017-18.

Learned counsel for the petitioner states that the petitioner filed its return of income for the relevant Assessment Year on 27th October, 2017 declaring an income of Rs.9,94,478/-. She states that pursuant to an anonymous complaint filed as a Tax Evasion Petition (TEP) before the Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:23.08.2022 18:21:42 Enforcement Directorate, the reassessment proceedings were initiated against the petitioner.

She further states that the petitioner filed a reply to the show cause notice denying the allegation that an amount of Rs.1,00,00,000/- was invested by it in some property.

Learned counsel for the petitioner states that the authorities passed the impugned order dated 29th June, 2022 under Section 148A(d) of the Act rejecting the petitioner's reply stating that "the assessee has not furnished the details of properties/assets owned by it along with their source of investment. Therefore, the amount of Rs.1,00,00,000/- mentioned in TEP remained unexplained/unverified". She states that the finding by the respondent in the impugned order is factually incorrect, as the petitioner had filed its audited Balance Sheet as well as the Bank Statement for the year under consideration along with its reply to the show cause notice and had also filed an affidavit by its director wherein it was stated that no such investment was made by the petitioner/company in the year under consideration. She contends that the assessment cannot be reopened solely on the basis of an anonymous complaint to the Directorate of Enforcement especially in the absence of any preliminary investigation by the authorities and a final or even an interim report suggesting any income escaping assessment. She lastly points out that reassessment proceedings initiated against two other assesses under the same complaint have been dropped. The relevant portion of the order passed in the case of one of the similarly placed assesses i.e. Wyzak Laboratories Private Limited dated 23rd July, 2022 is reproduced hereinbelow:-

"6.2 In connection with the TEP the reply of the assessee has been considered and found that it has some merit. In this an anonymous complaint had been filed against Sh. Vivek Kohli not against the assessee company. In its complaint the complainant has alleged that Mr. Vivek Kohli has lot of Gold and undisclosed properties and is engaged in Money Laundering and deliberate evasion of income tax. He earns from various source like from Baby Joy IVF Centre (IVF and Surrogacy), Surrogacy Consultancy - Wyzax Lab, Medicine Distributing Agency, Medicine Distributing Agency rent from office - space 603 & 604 Vishwadeep Tower, District Centre, Janakpuri, New Delhi. The complainant has not provided any documentary evidence in support of its claim. 6.3 The assessee has submitted its statement of bank account and financial statement, on verification no significant change has been noticed either in bank statement or in Financial statements. Therefore it is clear that the complaint is vague in nature and no evidence or documents has been provided.

Issue notice. Mr.Sanjay Kumar, learned senior standing counsel accepts notice on behalf of the respondent-revenue. He prays for and is permitted to file a counter affidavit within four weeks. Rejoinder affidavit, if any, be filed before the next date of hearing.

List on 13th December, 2022.

Though the Assessing Officer is permitted to pass the assessment order, yet it is directed that the same shall not be given effect to and shall be subject to further orders to be passed by this Court.

MANMOHAN, J MANMEET PRITAM SINGH ARORA, J AUGUST 22, 2022/KA Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:23.08.2022 18:21:42