TaxTMI 
TaxTMI 
2025 (10) TMI 1242
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....lapses under the provisions of the GST Act. However, the Income Tax Department continued the re-assessment proceedings of various assessee who are suppliers of the petitioner on the basis of the information which was available on the Insight Portal. 2. The petitioner therefore received the feedback from the suppliers, and the suppliers have stopped transacting the business with the petitioner. The petitioner therefore drew the attention of the respondent-Income Tax Department and corrective steps have been taken by the respondent-Income Tax Department to see that no re-assessment is made in the case of the suppliers of the petitioner on the basis of the information relating to the petitioner which was made available on the Insight Portal. 3. This petition is pending since 2024 and since last one and half years, the respondent-Income Tax Department has placed on record the details by filing various affidavits to demonstrate that the necessary actions are taken at its end to resolve the issue of re-assessment in case of the suppliers of the petitioner on the basis of the information which was made available on the Insight Portal. 4. It would be therefore necessary to refer t....
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....es. The petitioner therefore wrote a letter dated 10th March, 2024 to the Chairman, Central Board of Excise and Customs, Directorate General of GST Intelligence, the respondent No. 1-Principal Chief Commissioner of Income Tax, Ahmedabad, respondent No.2-Director General of Income Tax (Investigation), Ahmedabad and respondent No. 3-Principal Commissioner of Income Tax, Rajkot clarifying that it was one Varuni International and not the petitioner-Vasuki Global Industries Limited formerly known as Vasuki Tradelink Private Limited which was subjected to alleged bogus fake invoices and passing of the Input Tax Credit. It was also pointed out that the registration number of the Varuni International was cancelled by the GST authorities whereas, registration of the petitioner was very much active and the petitioner is undertaking genuine business of large quantity and is also subjected to audit by GST Department and the allegations made in various notices issued under Section 148A(b) of the Act to various buyers and sellers of the petitioner-Company are based on incorrect information on the Insight Portal of the Income Tax department. 4.8. The respondent No. 1 sought clarification from ....
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....r. Varun K. Patel for the respondent informed the Court during the course of hearing on 23rd December, 2024 that he has received the instructions to the effect that corrective steps have been taken by the respondent-Authority in the matter and the same would be placed in the detailed affidavit. 4.14. Thereafter, on 11th February, 2025, learned Senior Standing Counsel Mr. Varun Patel tendered an affidavit-in-reply filed on behalf of the respondents wherein, following averments were made with regard to the corrective steps having been taken by the respondent-Authority: "3.20. Thereafter, the office of PCCIT, Gujarat by letter dated 21.03.2024 has forwarded the said clarificatory letter of DGGI dated 16.03.2024 to different Income Tax authorities, viz. the Chief Commissioner of Income Tax-1, Ahmedabad, Chief Commissioner of Income Tax, Rajkot, Chief Commissioner of Income Tax, Surat, Director General of Income Tax (Inv.) Ahmedabad for necessary action. Annexed hereto and marked as Annexure-R/18 is copy of the letter dated 21.03.2024 issued by the office of PCCIT, Gujarat. 3.21. It is submitted that as per information provided to the answering respondent from the o....
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....of the fake invoices issued by M/s.Varuni International, Gandhidham. It was also mentioned by him that during the course of inquiry of the DGGI-GRU, Gandhidham, the director of M/s. Varuni International appeared and it was informed that the entity M/s. Varuni International, Gandhidham was bogus/non-existent firm and had issued fake invoices and thereby passed on wrong ITC and therefore, the ITC was required to be reversed by all the entities to whom M/s. Varuni International had issued invoices. 3.24. It is submitted that the petitioner also mentioned in the said letter dated 10.03.2024 that the statement of director of the petitioner company i.e. M/s. Vasuki Global Industries Limited was recorded, as it was one of the several purchasers of M/s. Varuni International. The petitioner had agreed to reverse the Input Tax Credit (ITC) relating to M/s Varuni International and pay the GST, interest and penalty thereon. The petitioner in its communication had also enclosed the copy of letter bearing No. F.No. DGGI/GRU/12(4)-31/2020-21 dated 06.09.2021 sent in respect of closure of inquiry in the case of M/s. Vasuki Global Industries Ltd on payment of total tax, applicable interest....
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....al Unit dated 06.05.2024 along with its enclosures (Annexure-R/21) has been sent via emails dated 05.02.2025 to Jurisdictional Assessing Officers, who have initiated reassessment proceedings for the beneficiaries of Vasuki Global Industries Ltd. following the report uploaded for the FY 2017-18 and FY 2019-20 by the office of Deputy Director of Income Tax (Inv.)-1, Rajkot on Insight Portal with a request to bring this subsequent information to the notice of Faceless Assessing Officers for the perusal and for taking necessary action as deemed fit. Annexed hereto and marked as Annexure-R/22 is the copy of the emails to JAO dated 05.02.2025. Additionally, an email dated 06.02.2025 has been written to Addl. DIT(Systems)-2(3), Delhi for withdrawal of information in case of the beneficiaries of the petitioner from dissemination to Impending RMS cycle, a copy of this letter was also marked to Additional Director General (Systems), Delhi. Annexed hereto and marked as Annexure-R/23 is the copy of the said letter dated 06.02.2025 with attachments." 4.15. In view of the aforesaid affidavit, following order was passed by this Court on 11th February, 2025 : "1. Learned Senior Standin....
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....s have been taken by the concerned Jurisdictional Assessing Officer based on the reports uploaded by the Investigating Wing of the Income Tax Department. (ii) To provide the details of the cases similar to the present case where the reports have been uploaded on the basis of the information provided by the DGGI on the data obtained from the GST portal for the last three years. (iii) To place on record the action taken pursuant to the reports uploaded by the Investigating Wing of the Income Tax Department and the outcome of the remedial actions which are taken recently in the last week on 5th February, 2025. (iv) It is also required to be explained by the respondents as to actions were taken from March, 2024 when the letter dated 16.03.2024 (Page No. 293) was received till the notice was issued by this Court on 19.09.2024 and actions taken after receipt of the notice till 5th February, 2025. 5. Learned Senior Standing Counsel Mr. Varun Patel prays for time to place above information on record before the next date of hearing. 6. Learned Senior Advocate Mr. S.N. Soparkar also prays for time to file rejoinder to the affidavit-in-reply filed ....
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.... C. Para 4 (iii) of the order dated 11.02.2025: To place on record the action taken pursuant to the reports uploaded by the Investigating Wing of the Income Tax Department and the outcome of the remedial actions which are taken recently in the last week on 5th February, 2025. Reply: Details of actions taken pursuant to the reports uploaded by the Investigation Wing: It is submitted that there are 133 cases of F.Ys. 2017-18, 2018-19, 2019-20, wherein actions u/s.148 and 148A have been initiated pursuant to the reports uploaded by Investigation Wing, Rajkot. Out of those 133 cases, as stated hereinabove in para no.2A, there are total 83 cases, wherein the reassessment proceedings after issuing notice under section 148 have been initiated. Further, there were other 50 cases wherein proceedings under Section 148A had been initiated pursuant to the reports of Investigation Wing, Rajkot. After receipt of clarificatory communication from DGGI dated 16.03.2024, the proceedings u/s.148A in those 50 cases have been dropped, details of which are as under:- SN FY 2017-18 FY 2018-19 FY 2019-20 Total Cases dropped 1 07 ....
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.... the details of outcome of the remedial actions which were taken on 05.02.2025 and thereafter, are as under: 1) In all 83 cases were reopened based on the report uploaded by DDIT(Inv.)-1, Rajkot. Out of 83 Cases, 51 cases were reopened solely on the basis of reports uploaded by DDIT(Inv.)-1, Rajkot. Remaining 32 cases were reopened based upon the report uploaded by the Investigation Unit Rajkot, as well as, based on other information. 2) Out of 83 Cases, total 23 Assessment orders were passed before 05.02.2025. Out of the 23 cases, no additions were made in 16 Cases. 3) Out of 83 Cases, total 32 Assessment orders were passed after 05.02.2025. Out of those 32 cases, no additions were made during the assessment proceeding in 28 Cases. 4) In remaining 28 cases, the assessment orders are yet to be passed. Here, it is worth mentioning that in all these 28 cases, the additional information received from DGGI has already been communicated, so that, FAOs can take informed decision. D. Para 4 (iv) of the order dated 11.02.2025: It is also required to be explained by the respondents as to actions were taken from March, 2024 when the lette....
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....AMFD1874F DIYAN PAPERS LLP 18 AANFC3699L CLAYART MINERAL 19 AANFD2825M DHARTI CORPORATION 20 AAPFN1543C NEXUS CORPORATION 21 AAPFR0076G RADHE KRISHNA CERA CLAY 22 AASFR7675N RATAN WORLDLINK LLP 23 AATFB4366R BHAGYA LAXMI COAL LLP 24 AATFG4186E GURUKRUPA TRADING 25 ABMFM2748L MARQUINA COAL 26 ACDPG4081G ANURAG GOEL 27 ADIFS2580E SHIV CORPORATION 28 ADOFS4585K SHREE ANJANI ENTERPRISE 29 ADQFS2789B SKB BLACKROCK LLP 30 ADRPC9514B SUBHAS CHANDER 31 ADWFS5781P SHIVAAY COAL CORPORATION 32 AEGPD8661N DIBYENDU DEY 33 AFFPG6871D NEHA RAJKUMAR GUPTA 34 AFSPJ5115N SANJAY KUMAR JAIN 35 AIBPB8494J DIPEN BUJAD 36 ALRPM7930R KALPESH MAVJIBHAI MORDIYA 37 AMCPS6173L DHARAM PAL SHARMA 38 AQLPS3213J VIJAYKUMAR HARISHBHAI SONI 39 AVCPS3184L MANAV SHEKHER 40 BVLPM7644B ROBIN SINGH MAAN 41 AALFP5778M PARKER IMPEX 42 ABIFA4124A AKSHAR BLACKROCK LLP 43 ACPFS4024B SHREE SAI CORPORATION 44 AADCB7271J BLACK DIAMOND TRADELINK PRIVATE LIMITED 45 AAKFV9568N VIS....
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....Assessment Order Remarks 1 AFZPM5997A KIRAN MODI 03-02-2025 14/02/2025 No Addition Made 2 ABFFS1268N SHUBHAM MINCHEM PRIVATE LIMITED 03-02-2025 07/03/2025 No Addition Made 3 ALGPG5976Q SACHIN GOYAL 03-02-2025 17/03/2025 No Addition Made 4 AAMFK0760D K M TRADERS 03-02-2025 25/03/2025 No Addition Made It is submitted that in all the above four cases, the assessment order has been passed without making any addition based upon the investigation report. Assessment orders passed by the Assessing officer in above cases is annexed hereto and marked as Annexure R/4." 4.17. It appears that thereafter, further affidavit-in-reply was filed on 15.04.2025 by the respondents regarding reopening of the cases which were brought to notice by the petitioner explaining the prompt actions which were being taken by the respondent-Authorities. The petitioner filed the affidavit-in-rejoinder affirmed on 14th April, 2024 bringing on record continuation of the proceedings on the basis of the information relating to the petitioner in case of the various assesses. The respondent, thereafter, filed three further affidavit-in....