TaxTMI 
TaxTMI 
2026 (6) TMI 1195
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....s the said Act) and the consequential notice dated 30th June 2025 issued under Section 148 of the said Act for Assessment Year 2020-21. 3. The core issue involved herein is whether the Assessing Officer validly formed the opinion that income has escaped assessment without considering the reply and materials submitted by the petitioners and whether the principles of natural justice has been violated. 4. The Learned Counsel appearing for the petitioners submit that the impugned order dated 30th June 2025 suffers from a legal infirmity as the same has been passed without considering the two replies dated 14th April 2025 and 19th June 2025 filed by the petitioners in response to the show cause notice dated 19th March 2025 issued under Sec....
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....0,000/- from M/s Fantastic Hirise Pvt. Ltd. against sale of investments (equity shares) during the relevant financial year. The assessee submitted (i) copy of bank statement only a few pages but not the complete bank statement of the assessee company as well as of one of the buyers namely M/s Foremost Enterprises Pvt Limited, (ii) the copy of audited accounts of the assessee company as well as of both the buyer for the concerned financial year, (iii) copy of sale bill etc. However, the assessee had not submitted FMV (Fair Market Value) of equity shares (being the investment). 5.3. Findings of Investigation wing: As per investigation done by the Department in the case of M/s Highland Transport Pvt. Ltd fro....
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....ear that all the concerned entities from where the assessee company received funds/money are paper / shell entity, which has been used for providing accommodation entries and unaccounted money has been routed and the said fund is credited in the books of accounts of the assessee company herein one of the beneficiary concerns without any business rationality." 8. It has been specifically recorded that the petitioners being the assessee furnished only partial bank statements for selected period. Upon perusal of the statements reveals a pattern wherein substantial amount has been credited and debited on the same day or through immediate routing, indicating lack of commercial substance. 9. It is further submitted that apart from routing t....
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....ng Officer is perverse, and without jurisdiction as the order does not record a detail finding with regard to the income alleged to have escaped assessment for Assessment Year 2020-21. Mere reference to circular transactions, without analyzing the commercial rational or materials furnished cannot sustain the formation of the believe under Section 148A(3) of the said Act. Since the mandate of Section 148A requires the Assessing Officer to consider the reply from the assessee and decide by passing an order whether it is a fit case to issue notice under Section 148. In the present case since the specific replies have been filed, non-consideration thereof, vitiates the order. 15. The genuineness and the creditworthiness of the transactions w....