2024 (5) TMI 598 - HC - Income Tax

Tax Notice Quashed: Case Remanded for Fresh Review by New Officer with Deadline for Reasoned Order by July 2024.

The HC quashed the impugned order dated 4th May 2023 and set aside the notice under Section 148 of the Income Tax Act, 1961. The case was remanded for ... Validity of reopening of assessment - order passed u/s 148A (d), but officer does not deal with any of the submissions made by Petitioner - Non independent application of mind - Directorate General of GST, Mumbai has identified one Curzen Infraprojects Pvt. Ltd was generating fake/bogus invoices for passing of fraudulent Input Tax Credit (ITC) without supply of goods to various companies, and EMI Transmission Ltd. was one of them, because Petitioner dealt with EMI Transmission Ltd., the said transaction is non-genuine - HELD THAT:- AO is only referring to the information received from the Directorate General of GST. There is absolutely nothing to indicate that he independently applied his mind to the material received or that he has analysed the response from Petitioner with the material received, which reflects total non-application of mind. Petitioner has submitted various documents to show that the goods purchased from EMI Transmission Ltd. were actually supplied to third parties and we would agree with Petitioner that without purchase there cannot be a sale. Thus we hereby quash and set aside the impugned order and remand the matter for denovo consideration. Issues involved: Impugning a notice under Section 148A (b) of the Income Tax Act, 1961, order under Section 148A (d) of the Act, and another notice under Section 148 of the Act.Impugned Order Analysis: The main ground raised was the lack of dealing with submissions in the order under Section 148A (d) of the Act, indicating non-application of mind by the Assessing Officer.AO's Decision: The Assessing Officer dismissed all submissions by stating that the documents provided were insufficient to prove the genuineness of the transaction, solely relying on information from the Directorate General of GST without independent analysis.Court's Decision: The High Court quashed the impugned order dated 4th May 2023 and remanded the matter for fresh consideration by a different Assessing Officer. The notice issued under Section 148 of the Act was also set aside.Remand and Directions: The new Assessing Officer was directed to pass a reasoned order by 31st July 2024, considering all submissions and providing a personal hearing to the Petitioner. The Petitioner was also granted access to all documents and information used for issuing the notice.Further Proceedings: The Petitioner was given the opportunity to file additional submissions within two weeks after receiving the documents, and the petition was disposed of with no order as to costs, keeping all rights and contentions of parties open.