2026 (2) TMI 373

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....er (hereinafter referred to as 'AO') vide notice dated 20.03.2024 under Section 148A(b) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act of 1961') so also the subsequent letter/notice dated 17.04.2025, which the respondent has issued. 2. While inviting Court's attention towards the notice dated 20.03.2024 and the reasons recorded therein, learned counsel for the petitioner argued that a passing reference has been made to transactions of Rs. 46,00,460/- and Rs. 89,86,36,597/- as bogus sales and purchases and no details or information was given by the respondent about the aforesaid transactions. He submitted that when the subsequent letter dated 17.04.2025 (Annexure P-2) was issued, the AO did not provide any further detail....

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....ed senior standing counsel appearing for the respondent-department, at the outset submitted that true it is, that in view of the concession given by the department, earlier order dated 30.03.2024 passed under Section 148A(d) of the Act of 1961 was quashed by this Court vide order dated 21.03.2025, but the basic notice dated 20.03.2024 issued under Section 148A(b) was not touched by the Court, rather it remained as it was. He submitted that the High Court on earlier occasion consciously affirmed the invocation of powers of re-assessment. 7. He argued that the argument, which the petitioner is seeking to advance today, that the notice is without jurisdiction, was very much available to the petitioner and was in fact, the premise for filing....

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....t reference to two figures i.e. Rs. 46,00,460/- on the ground of bogus purchases so also the amount of Rs. 89,86,36,597/- as fictitious sale has been made. Simply because names of M/s Johnson Watch Group and M/s Kapoor Watch Group & others have been mentioned without specifically mentioning about the concern or entity with whom the petitioner had allegedly dealt with, it cannot be said that the reasons recorded or the information provided are not sufficient. A perusal of sub-section (1) of Section 148A of the Act of 1961 (as it stood before the amendment vide Finance Act, 2021) reveals that it simply provides for information suggesting income chargeable to tax has escaped assessment is to be supplied along with the notice. 12. Informatio....