2022 (10) TMI 236

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.... Income Tax Act, 1961 ('the Act') and the notice dated 26th July, 2022, issued under Section 148 of the Act, for the Assessment Year ('AY') 2013-14. 2. In the Show Cause Notice ('SCN') dated 20th May, 2022, issued under Section 148A(b) of the Act, the Petitioner/assessee was to show cause with respect to information received by the Income Tax Department('Department') that the assessee is involved in High Value Transactions with Mr. Naveen Sharma [Proprietor of M/s Mahamaya Trading Company and M/s Surya Trading Company ('entities')] and as per the information received, the said entities were engaged in providing accommodation entries and the assessee, was also a beneficiary as it hada High Value Transaction amounting to Rs.1,50,00,000/- d....

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....Section 149(1) of the Act (as amended by the Finance Act, 2021). 4. Pertinently, in this reply to the SCN, the assessee did not refer to or offer any explanation qua the transactions undertaken by the assessee with M/s Mahamaya Trading Company and M/s Surya Trading Company. The reply was completely silent on the transaction. 5. The Assessing Officer ('AO') after considering reply of the assessee dated 3rd June, 2022, observed that no response has been furnished on the merits of the information put to the assessee in the SCN dated 20th May, 2022. With respect to the issue of limitation, the AO held that the notice has been issued within limitation, as in this case initial notice was issued on 22^nd April, 2021, under the unamended Sect....

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....d the notice, both dated 26th July, 2022. 7. Issue notice. Mr. Abhishek Maratha, learned Senior Standing Counsel for Revenue appears on advance notice and states that the assessee is a beneficiary of an accommodation entry and the transaction between the assessee and M/s Surya Trading Company is not genuine. The adjudication of the petition involves disputed questions of facts and same cannot be determined in the present proceedings. 8. We have heard learned counsel for the parties. We have perused reply dated 3rd June, 2022, filed by the petitioner in response to the SCN dated 20thMay, 2022. In the said reply, the assessee had not adverted to its replies dated 16th April, 2021and 24th July, 2021.The reason for not adverting to its ea....