TaxTMI 
TaxTMI 
2026 (5) TMI 555
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act. 2. The brief facts of the case are that the assessee had filed his return of income for A.Y. 2020-21 on 20.11.2020 declaring total income of Rs. 4,63,880/-. The case of the assessee was reopened on the basis of an information received by the AO that the assessee has availed input tax credit without supply of goods worth Rs. 25,20,70,060/-. An information was shared by CGST & Central Excise Commissionerate, Surat regarding fraudulent ITC/unexplained credit in respect of bogus sales by M/s Anmol Trading, a proprietorship concern of the assessee. Before the AO the assessee had explained that M/s Anmol Trading was not the proprietorship concern of the assessee and someone else had fraudulently taken input credit in the name of this con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee had failed to substantiate that his PAN was fraudulently misused for obtaining GST registration and for carrying out alleged bogus transaction. Therefore, the AO had rightly treated the total transaction of Rs. 25.20 crores in the name of Anmol Trading, registered on GST portal against PAN No. of the assessee, as the unaccounted turnover of the assessee. She submitted that the AO was fair enough to apply profit rate of 8% on this unaccounted turnover. The Ld. SR-DR submitted that the Ld. CIT(A) was not correct in deleting the addition. 6. Per Contra, Shri Tejas K. Andharia, the Ld. AR of the assessee strongly supported the order of the Ld. CIT(A). He submitted that the GST Department had already cancelled the registration of M/s A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....account of the assessee was brought on record by the AO in order to establish that this sale was made by the assessee only. The assessee had filed a complaint with GST Department and the AO had held that mere filing of such complaint does not absolve the assessee of the prima facie evidence of ITC fraud. However, the AO did not take up the matter with the GST department to find out the outcome of the investigation carried out by them. It is found that the Ld. CIT(A) had considered the facts of the case in totality and given the following finding: 9. I have considered the assessment order, submission of appellant and facts available on record. In this case the A. O received information from the Central Excise Commissionerate, Surat ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ove it is seen that the GST Department has cancelled the registration of M/S Anmol Trading on 03.08 2021 wef 01.06.2021. The GST Department has also acknowledged the fact that the GST registration of M/S Anmol Trading was granted without any Aadhar Authentication by way of deemed approval. It is further seen that the GST department has not denied the contention of the appellant that his PAN has been misused for GST registration. The GST Department has not taken any action against the appellant and has not given any finding against the appellant which shows that the GST Department has also agreed that contentions raised by the appellant are not incorrect. 11. From the above it is evident that the GST Department has not confirmed the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....age had all the Respondents been diligent enough to authenticate the Aadhaar number However, inaction on the part of the Respondents after having falled in their duty has aggravated the situation even more We sincerely hope that in the future all concemed authorities would take prompt action when such instances of fraud are brought to their notice. We pray that common citizens of this nation do not suffer agony like the Petitioner 35. In our view Respondent No 1 should take steps to make the public aware of the authorities/entities who can insist on Aadhaar number and these authorites/entities who are permitted to use Aadhaar number for authentication should be equipped with necessary technology for authentication and such authenti....