2026 (8) TMI 390

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....issue involved in all these writ petitions is same, the same is decided by present common judgment wherein Special Civil Application No.15475 of 2025 is taken up as a lead matter. 2. The petitioner is a Company incorporated under the Companies Act, 1956 has been issued a show cause notice dated 15.03.2025 under Sub-Section (1) of Section 148A of the Income Tax Act, 1961 (for short 'the Act') seeking reopening of the assessment on the basis of Suspicious Transaction Report (for short 'STR') conducted by Deputy Director of Income Tax (Investigation) (for short 'DDIT') which is assailed by the petitioner in the present writ petition alongwith impugned notice under Section 148 of the Act and the order passed under Section 148A(3) of the Act ....

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..... 3.3 It is further submitted that there is no evidence with the respondent in the nature of any incriminating material or seized material indicating that the transactions appearing in the bank account of the petitioner are bogus or accommodation entries which results into escapement of income. Finally, while pointing out to the reasons assigned in the impugned order, it is contended by learned Senior Advocate Mr. Hemani that the Assessing Officer has alleged that since M/s. Venus Infrabuild does not have any loan providing business and neither it had requirement of funds, the high value transactions are suspicious in nature and petitioner is one of the entity who have taken/given unsecured loan from M/s. Venus Infrabuild which can never....

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....eing issued the show cause notice dated 15.03.2025 under Sub Section (1) of Section 148A of the Act, alleging suspicious transaction based on the STR conducted by DDIT, filed detailed reply on 31.03.2025. The grounds of suspicious contained in the STR is investments of capital nature should be for long term, however, the transactions in the petitioner's capital account in M/s. Venus Infrabuild are happening frequently and are of repetitive nature which puts the nature, genuineness and authenticity of such transactions in doubt. Thus, the STR reported these transactions as suspicious. The petitioner was accordingly issued summon under Section 131(1A) of the Act calling upon for various details and documentary evidence which were responde....

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....apital balance account of receipts of Rs.83,95,84,718 by a partner from his partnership firm. Such type of transactions form the mutual decisions of the partners of the firm in accordance with the Partnership Deed which can never amount to escapement of income. Furthermore, the respondent has not denied that petitioner has not claimed any interest expenditure in the return of income on account of transactions in question i.e. transactions appearing in the petitioner's capital account in VIDPL during the year under consideration, which can be ascertained from the capital account furnished to the respondent and thus, the very basis of escapement of income does not survive in absence of claiming any interest expenditure. 9. Nothing is p....