TaxTMI 
TaxTMI 
2026 (1) TMI 1046
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....emand Notice (Exhibit-B) dated 29th September 2023. 3. The above Writ Petition is filed challenging the assessment order dated 29th September 2023 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (for short "the Act"), issued by Respondent No. 1 for Assessment Year 2020-21. In the Assessment Order, Respondent No. 1 made an addition of Rs. 302,26,74,069/- under Section 69 of the Act based on the difference between the invoice value of imports as per the data received from the Central Board of Excise and Customs ("CBEC") (Rs.1520,29,89,300/-) and the purchase value of imports disclosed by the Petitioner in it's return of income (Rs.1218,03,15,231/-). 4. The Petitioner has challenged the said assessment order primarily on the ground that it had requested full details of the import-export data allegedly received by/available to Respondent No. 1 from the CBEC, which was in the exclusive knowledge and possession of Respondent No. 1, and which formed the sole basis for the addition of Rs. 302,26,74,069/- but was never provided the same. The Petitioner points out that it would be impossible for it to explain/reconcile the alleged variation in the value o....
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....ection 142(1) of the Act resubmitting the details filed earlier, including requesting for the details/data on the basis of which the aforesaid difference in purchases has been computed by Respondent No. 1. It once again reiterated that it could not find any discrepancies as the per audited books of accounts and the return filed. 10. Respondent No. 1 then issued a show cause notice dated 6th September 2023 requiring the Petitioner to respond by 11th September 2023 (thereby allowing only 5 days' time - including a Saturday and Sunday) and proposing inter-alia an addition of Rs. 302,26,74,069/- under Section 69A of the Act (Unexplained Money) based on the difference between the invoice value of imports as per the data received from CBEC (Rs. 1520,29,89,300/-) and the purchase value shown in the ROI (Rs. 1218,03,15,231/-). 11. On 11th September 2023, the Petitioner sought 7 days' time to file a reply. However, Respondent No. 1 vide letter dated 12th September 2023 issued at 17:06 IST granted only a 3 days' adjournment, requiring that the reply be provided by 14th September 2023. 12. The Petitioner filed a reply on 14th September 2023, objecting to the proposed vari....
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....led to reconcile the difference between purchase value shown by assessee in ROI and the invoice value of imports as per the data received from CBEC was unjustified. Petitioner had repeatedly asked for information and details as to how the Assessing Officer is making such an allegation about difference in purchase value and to provide material which the Assessing Officer has failed to and neglected to provide. We suggested to counsel that instead of staying the order if we could quash and remand the order for denovo consideration then at least assessment proceedings can go ahead and the state's interest will not be prejudiced by a stay order. Since Mr. Singh was insistent on filing an affidavit in reply opposing the petition, we have no choice but to admit the petition and stay the impugned assessment order." 15. The Petitioner also has drawn our attention to the assessment order for the subsequent year under Section 143(3) read with Section 144B of the Act, for the Assessment Year 2022-23, raising a similar issue in respect of the difference in value of import purchases as per data received from CBEC and the value as declared by the Petitioner in the return of income. However, f....
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....tice. In the notice dated 18th November 2021, Respondent No. 1 required the Petitioner to reconcile the stated difference between purchases shown by the Petitioner in its return of Rs 1218,03,15,231, and "...data with us ... Rs.1520,29,89,300...". Other than this aggregate figure, no details were set out in the notice. The Petitioner's reply dated 30th November 2021, though scanty, notes that no discrepancy appeared from it's books and requested Respondent No. 1 to provide more clarity and guidance so as to answer the query. Thereafter it was only on 20th June 2023 that Respondent No. 1 required the responses of the Petitioner to be re-filed. On 6th September 2023, Respondent No. 1 issued a show cause notice which yet again set out the aggregate figures of imports, and without any details whatsoever, stated the difference of Rs. 302,26,74,069/- remained unverified, and required the Petitioner to show cause why the same should not be treated as unexplained money as per Section 69A of the Act. Reply to the show cause notice was sought by 11:42 hours on 11th September 2023. On the Petitioner's request, an adjournment was granted upto 14th September 2023. On this date the Petitioner re....
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....ent case, the only basis for the addition is the aggregate purchase figures communicated by the CBEC, which do not disclose any particulars of import bills or details of additional purchases made. Such general information, without details, without a proper opportunity to set out a reconciliation, and without any supporting evidence, cannot constitute valid material for the purpose of making an addition under the Act. 21. In view of the foregoing discussion, we hereby quash and set aside the assessment order passed under Section 143(3) read with Section 144B of the Act dated 29th September 2023 (Exhibit A), and the notice of demand under Section 156 of the Act dated 29th September 2023 (Exhibit B). 22. We now remand the matter back to the file of Respondent No. 1. He shall issue a fresh Show Cause Notice to the Petitioner with respect to the addition of Rs. 302,26,74,069/-, bringing out clearly the provision/(s) under which he proposes to make the addition, provide the detailed break-up of the import value of purchases including the copy of information as received from CBEC, and grant sufficient time of at least 15 working days to file a reply to the notice. Before passing the....