TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 957
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.... circumstances of the case." 4. The present petition has been filed seeking quashing of the impugned notices dated 24.03.2025 and 28.05.2025 issued under Section 148A(1) of the Income Tax Act, 1961 ('the Act', hereinafter); order dated 23.06.2025 under Section 148A(3) of the Act pertaining to the Assessment Year 2019-20 and notice dated 23.06.2025 under Section 148 of the Act. 5. Mr. Mukesh Gupta, learned counsel for the petitioner has argued that the petitioner had filed its return of income on 17.10.2019 wherein the petitioner declared the income of Rs. 3,06,93,740/- and the same was revised on 21.12.2019 and 20.01.2020. He contends that the respondent issued a notice under Section 148A(1) of the Act wherein the respondent returned certain findings regarding the petitioner company being involved in a bogus transaction amounting to Rs. 82,25,822/- with IFFCO TOKYO General Insurance Company Ltd ('IFTGI', hereinafter). He stated that the petitioner company thereafter filed response on 15.04.2025 to the notice under Section 148A(1) and was further directed to again furnish a reply on 29.05.2025 in response due to change of the incumbent under Section 129 of the Act. It is his c....
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....11.2022 to verify the claim of services against which these entities had received payments from the insurance companies. According to the notice, these MLBEs were neither authorized to receive commission nor registered under Insurance Regulatory and Development Authority of India ('IRDAI', hereinafter) and have acted as pass-through entities for the insurance companies. These payments were masked under various heads such as online media expenses, advertisement services, online marketing, marketing activities, brand promotion expense, etc., and that these were finally paid to the insurance agents or insurance intermediaries or their nominees. Such search and seizure has covered 37 MLBEs and 32 insurance companies were part of post search verification. 9. According to the impugned notice, the respondents have stated that the insurance companies have signed several service agreements with several MLBEs to facilitate transfer of such payments. The notice states that the analysis of this financial data was carried out and has indicated that these MLBEs do not have the capacity to render such services and the funds which have been received from the insurance companies were simply pass....
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....payments under the head marketing and business promotion to various entities. Analysis of financial data and enquiries of these entities were carried out by the Investigation Wing which indicated that these entities are not having the capacity to render such services. They have received the fund from the Insurance companies and simply passed on the funds to other individuals and other business entities without receiving any services. 2.4 From the investigation report it is gathered that the assessee company also found to be involved in bogus transaction amounting to Rs. 82,25,822/- with IFFCO-TOKIO General Insurance Company Ltd. 3. Considering the above referred credible information and analysis, subsequent to the information, proceedings u/s 148A of the Income-tax Act, 1961 was initiated. In view of the above facts and circumstances of the case, a show cause notice u/s 148A(1) was issued to the assessee on 31/03/2025 requesting the assessee company to respond by 17/04/2025, as it appeared that income chargeable to tax has escaped assessment for the transaction mentioned above amounting to Rs. 82,25,822/- during the year under consideration. In response of the not....
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....l the relevant documents have been reconciled and are matching with each other confirming that an amount of Rs. 83,28,333/- is the only amount received from ITGI against the premium placed by us to them through the policies of our various clients. And this amount has already been accounting in our profit and loss statement and due tax has already been paid on the same. Also, it would not be out of place to mention that throughout the life span of our existence, we as company have remained profitable, deposited our taxes diligently and have contributed significantly to the cause of the country. Last 5years data is self-explanatory and have been reproduced below for your kind perusal:- FY Revenue (in Cr) Profit Before tax (Amount in Cr) % age profit reported 23-24 80.83 27.79 34% 22-23 72.09 21.69 30% 21-22 46.56 11.67 25% 20-21 33.59 8.47 25% 19-20 23.29 7.16 31% Total 256.36 76.78 30% Further kindly note below points also: a) Any income/payment which we have received from ITGI have been booked in our profit and loss account and tax has been paid on the same. (Annexure 4a t....
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....ficient to accept the plea of the assessee. In light of the same, the reply of the assessee is considered evasive and devoid of substantial documentary evidence and therefore can not be accepted. 5. In this case income likely to escape is more than Rs.50 lakhs and the same is represented in the form of transaction or entries as mentioned above which shows the income chargeable to tax, which has escaped assessment, amounts to more than fifty lakhs rupees. Thus, the assessee's case is covered under provision of section 149 (1)(b) of the Income Tax Act, 1961. Accordingly, it is concluded that it is a fit case for issuing notice u/s 148 of the Act for A.Y. 2019-20. 6. Accordingly, after considering the facts of the case, as mentioned above, it is concluded that this case is a fit case for issuing notice u/s 148 of the I.T. Act." 11. We have recently decided a matter which squarely covers the issue in the case of RS Alloys v. Income Tax Officer Ward 63(1) Delhi and Anr. 2025 SCC OnLine Del 5798 "29. The conclusion of the AO is that mere maintenance of the documents and books of accounts provided by the assessee does not mean that there are no discrepancies ....
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.... of the Act. It is also not contested that the present action has been taken based on the information available with the respondent under Risk Management Strategy formulated by the CBDT, which is recognised under Section 148(3)(i) of the Act. It is in pursuance of this that the respondent has taken a view that that income chargeable to tax has escaped assessment in the case of the assessee during the relevant AY. A reference to the same has been made in the show cause notice issued under Section 148A(1) of the Act, which reads as under:- "2. Information available with this office under risk management strategy formulated by CBDT suggests that income chargeable to tax has escaped assessment in the case of assessee during the relevant assessment year. Copy of case related information as downloaded from the Insight Portal in your case is also annexed herewith." If that be so, initiation of the reassessment proceedings cannot be faulted." (Emphasis supplied) 12. In another judgment on a similar issue a co-ordinate Bench of this Court in the case titled Majestic Handicraft Private Limited v. Dy. Commissioner of Income Tax 2024 SCC OnLine Del 8858 held as under: ....