TaxTMI 
TaxTMI 
2025 (3) TMI 1498
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....d information of petitioner having made bogus purchases from M/s.Flash Forge Pvt Ltd. (hereinafter 'company'). The notice was responded to on 17.03.2022 wherein the petitioner denied to have made any purchases from company. Rather the stand taken was that the petitioner had made sales to the company. In continuation of the notice, communication dated 20.03.2022 was issued wherein the petitioner was asked to explain the transactions with company. The petitioner filed reply on 21.03.2022 explaining the sales to the tune of Rs.1,22,46,936/- made to company. Along-with reply the purchase orders, copy of letter of credits, invoices wherein the GST was separately charged, dimension report, mill test certificates, deliver challan/ packing list, transport bilties and copy of sales register were annexed. 3. The AO decided that it is a fit case to proceed under Section 148 of the Act holding that the evidence of sending the material to the premises of the company was not produced and it was a case of an accommodation entry by getting bogus invoices. 4. Learned senior counsel for the petitioner submits that the reopening of assessment was on surmises and conjectures in absenc....
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....to furnish a reply as per clause (b) expires: XX XX XX XX Relevant clauses of guidelines dated 01/08/2022 for issuance of notice u/s 148 of the Act. XX XX XX XX v. Explanation 2 to section 148 of the Act provides that if a survey u/s 133A of the Act (other than under section 133A (2A)) was conducted in the case of the assessee on or after 1 April, 2021, the Assessing officer shall be deemed to have information which suggests that income chargeable to tax has escaped assessment. However, it is to clarify that the due procedure as prescribed u/s 148A needs to be followed in such cases also before issuing a notice u/s 148 of the Act. (refer proviso to section 148A). vi. The AO shall, if required, undertake enquiries on any "information" received/available with him which suggests that the income chargeable to tax has escaped assessment in a previous year only with the prior approval of "specified authority". vii. If the result of enquiry/information available suggests that the income chargeable to tax has escaped assessment, the AO shall provide an opportunity of being heard to the assessee by issuing a show cause notice u/s 148A(b)....
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....DEPARTMENT OFFICE OF THE (Designation of AO along with Office address) To, PAN: A.Y: Dated: DIN*& Notice No. Notice under clause (b) of Section 148A of the Income-tax Act, 1961 Sir/Madam/M/s. 1. Whereas I have information which suggests that income chargeable to tax for the Assessment Year has escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961. The details of the information/enquiry conducted on which reliance is being placed, along with supporting documents, are enclosed with this notice. 2. You are required to show-cause as to why, in view of the details contained in enclosures mentioned in point number 1 above, a notice under Section 148 of the Income Tax Act, 1961 should not be issued. 3. You may submit your reply to this notice, along with supporting documents (if any) on the above mentioned issues on or before ______________electronically at www.incometax.gov.in. Guidelines for Enclosures * The AO should enclose copy of all the relevant 'information' available on which reliance is being placed, along with supporting documents (if any). * In t....
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....Act vide Finance Act, 2021, no notice under section 148 of the IT Act can be issued without following the procedure prescribed under section 148A of the IT Act. Along with the notice under section 148 of the IT Act, the assessing officer (AO) is required to serve the order passed under section 148A of the IT Act. section 148A of the IT Act is a new provision which is in the nature of a condition precedent. Introduction of section 148A of the IT Act can thus be said to be a game changer with an aim to achieve the ultimate object of simplifying the tax administration, ease compliance and reduce litigation. * 6.3 But prior to pre-Finance Act, 2021, while reopening an assessment, the procedure of giving the reasons for reopening and an opportunity to the assessee and the decision of the objectives were required to be followed as per the judgment of this Court in the case of GKN Driveshafts (India) Ltd. (supra). * 6.4 However, by way of section 148A, the procedure has now been streamlined and simplified. It provides that before issuing any notice under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authorit....
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.... of India Vs. Ashish Agarwal reported in [(2022) 444 ITR 01 (SC)] issued guidelines for issuance of notice under Section 148 of the Act. The combined reading of Section 148A of the Act and the guidelines emanates that the safeguards were provided before initiating the proceedings under Section 148 of the Act. In case need so arises to conduct an enquiry with regard to material available suggesting escaped assessment, the Assessing Officer ('AO') can proceed to enquire after prior approval of specified authority. The assessee is to be provided an opportunity of hearing. The information relied upon along-with outcome of the enquiry is to be supplied. In case of an information having been received from the investigation wing or the other agency, the summary of information along-with the relevant portion of report and details of the documents relied upon is to be supplied. The decision to proceed under Section 148 on the basis of material available with the department and after considering the reply filed by the petitioner is to be taken after prior approval of the specified authority. An exception has been provided by the proviso to Section 148A of the Act with regard....
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....ction upon AO for reopening the assessment. 13. The only conclusion of use of phrase 'information which suggest that income chargeable to tax has escaped assessment' and power to conduct enquiry if required, is that at least prima facie AO has to be satisfied that information suggest escaped assessment. In other words, there has to be basis suggesting escaped assessment for proceeding under Section 148, fishing and roving enquiry to find income escaped from tax cannot be made. The changed instance of the AO during the pendency of notice under Section 148A(b) of the Act, in fact was issued for testing the relevance of the material received from GST authority vis-a-vis escapement of tax under the Act which is not permitted. 14. Be that as it may, the petitioner filed another reply explaining the sales figure which are equivalent to the figure mentioned by the AO in the notice. The stand of the petitioner was substantiated by annexing transportation documents, invoices showing GST having been charged separately, testing reports and evidence that the consideration passed through banking channels. Instead of dealing with the documents produced by the petitioner and verifyi....