Court Upholds Tax Order, Dismissing Challenge on Alleged Bogus Purchases; Allows Appeal u/s 147 of IT Act.

The HC dismissed the writ petition challenging the order under Section 148A(d) of the Income Tax Act, 1961, concerning alleged bogus purchases for the assessment year 2019-20. The court held that the order was not a final assessment and any demand arising from it is appealable under the statute. The petitioner was given an opportunity to present their case, and the assessing officer's decision could not be re-evaluated by the Writ Court. The court found no illegality in the impugned order, allowing the petitioner to contest the matter further under Section 147.

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Issues Involved:
The judgment involves a challenge to an order dated 13th April, 2023 under Section 148A(d) of the Income Tax Act, 1961 relating to assessment year 2019-20.

Analysis:
The impugned order alleged a bogus purchase made by the petitioner amounting to Rs. 2,08,87,819/- during the financial year 2019-20. The petitioner was provided with an opportunity to be heard, along with the information and material relied upon, to explain why the transaction should not be treated as income chargeable to tax. The notice was duly served upon the petitioner, who filed a reply before the specified date. The assessing officer considered the reply and reached a conclusion, which cannot be re-appreciated by the Writ Court under Article 226 of the Constitution of India. The petitioner still has ample scope to present any case in their favor before the final assessment order under Section 147 of the Act.

Legal Ruling:
The order under Section 148A(d) is not a final assessment order, and any demand arising from it is appealable under the statute. Considering the facts and circumstances of the case, and the nature of the allegation, the Court found no illegality in the impugned order. Therefore, the writ petition was dismissed.

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