TaxTMI 
TaxTMI 
2026 (5) TMI 1263
X X X X Extracts X X X X
X X X X Extracts X X X X
....y invoking provisions of Section 147 of the Act for the reasons as were mentioned in paragraph No.3.2.1 of the re-assessment order, as under:- "3.2.1 Complete description of issues involved (issue-wise): As per information available on records, during the year under consideration, the assessee has made following financial transactions: Information Description Source Amount (Rs.) Total sales reported under GSTR-1 GSTN 89,26,208 Total sales reported under GSTR-3B GSTN 89,26,207 Assessee is beneficiary of Saurabh Gupta, Akash Khari DCIT, Central Circle-14, Delhi 11,11,560 To verify the above transactions, a Notice u/s 148 was issued on 30.03.2024 by obtaining prior approval of the appropriate authority. In view of the detailed Questionnaire issued along with Notice u/s 142(1) dated 09.10.2024 (which may kindly be referred), the assessee was required to furnish detailed information along with supporting documentary evidences. After making initial submission of computation of income, Trading Account, Profit and Loss account, Balance Sheet, Capital Account and bank account statements to Notice u/s. 142(1) dated 28.08....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... absence of satisfactory response/replies from the assessee, made the addition of Rs. 11,27,621/- to the income of the assessee with respect to alleged bogus purchases made by the assessee from Shri Saurabh Gupta( V K Industries) and Shri Akash Khari (Shri Bankey Bihari Industries), although the assessee had denied the transactions with the said parties. The AO passed the reassessment order u/s 147 read with Section 144B, under faceless assessment scheme. 3. Aggrieved, the assessee filed first appeal before the learned CIT(A). The assessee participated in the appellate proceedings, and submitted its response wherein it was submitted before ld. CIT(A) that the aforesaid purchases made by the assessee to the tune of Rs. 11,27,621/- from V K Industries and Shri Banke Bihari Industries are genuine and duly supported by GST invoices. These GST bills were shown in GSTR 2B form filed with GST Authorities. The assessee submitted that proprietor of the above 2 concern are Shri Ajay JIndal and Shri Amit Gupta respectively. The assessee submitted that the averment made by the AO that Shri Saurabh Gupta and Ashok Khari are related to these parties is false. The assessee submitted that payme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng the issue on merits in accordance with law. It is pertinent to mention here that reassessment order was passed under faceless assessment regime. I have observed that that during the course of reassessment proceedings, the assessee has not submitted complete replies to the notices issued by the AO from time to time under Section 142(1) of the Act, and only part replies were submitted by the assessee before the AO. The non compliances by the assessee to the notices issued by the AO u/s 142(1) of the 1961 Act, led AO to issue SCN's u/s 144. The assessee did not submitted complete reply to the first Show Cause Notice issued by the AO u/s 144 of the 1961 Act. There was non compliance to the second SCN issued by the AO. The details are enumerated in the para 2.2 above and are reproduced again even at the cost of repetition. Notice under Section 148 dated 30th March, 2024 was issued by the Assessing Officer to the assessee after obtaining approval of the appropriate authority. The assessee filed return of income in pursuance to notice issued by the AO u/s 148, declaring income of Rs. 6,70,040/- which was the same income as was declared by the assessee in his original return of income. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rved that Section 144B deal with faceless assessment regime. I have also observed that Section 144B(1) clearly stipulates that notwithstanding anything to the contrary in any other provision of the 1961 Act, the assessment, reassessment or re-computation u/s 143(3) or u/s 144 or Section 147, as the case may be, with respect to the cases referred to in Section 144B(2), shall be made in a faceless manner as per the following procedure, namely:-................... . Thus, Section 144B, inter-alia, covers best judgment reassessment u/s 144 r.w.s. 147 to be made in a faceless manner. Section 144B(2)(iii) refers to service of notice to the assessee through national faceless assessment centre u/s 143(2) or 142(1), and the assessee to file response to such notice. Section 144B(2)(viii) read with 144B(2)(ix) refers to consequences of failure to submit response to notice issued by the AO u/s 142(1) or 143(2). Such failure will lead to issuance by the AO of SCN u/s 144. Section 144B(2)(xiv) and 144B(2)(xv) provides for consequences of failure by the assessee to file response to SCN issued u/s 144, which will lead to preparing an income or loss determination proposal based on all relevant mate....