2022 (12) TMI 1466 - HC - Income Tax

Reopening of assessment u/s 147 - allegation against the petitioner is that it has received bogus entry from an entry provider one Mr Ramesh Kumar Bagri - HELD THAT - As would be evident upon perusal of the certificate CBI has stated that the amount was neither remitted nor credited from the accounts of the petitioner maintained with it. Insofar as the other certificate CBI makes the same assertion and goes on to confirm that the remittance was not made to the account number said to be maintained by Mr Ramesh Bagri. As we have before us, in the very least, the certificate dated 01.08.2022, which indicates that the petitioner had not remitted Rs.1,76,00,000/- on 12.08.2015 from its bank accounts maintained with CBI, it appears that, at least at this juncture, there was no information or material available with the concerned authority to trigger proceedings u/s 148/148A(d) of the Act.. List the matter on 11.04.2023.

Summary

Issues Involved:
Challenge to order under Section 148A(d) of the Income Tax Act due to discrepancy in bank account number.

Analysis:
1. The judgment concerns a discrepancy in an order passed under Section 148A(d) of the Income Tax Act, 1961, related to a bank account number. The petitioner's counsel presented a certificate regarding another account number, which was shared with the respondent's counsel and added to the case file for verification.

2. The court noted that the petitioner challenged the order and notice issued under Section 148 of the Act for Assessment Year 2016-17, alleging lack of information provided for reassessment proceedings. The respondent alleged receipt of a bogus entry from Mr. Ramesh Kumar Bagri, but the order did not link the petitioner to the transaction.

3. The respondent provided information to the assessing officer regarding transactions involving Mr. Bagri, showing significant amounts credited to his account. However, the petitioner presented certificates from the Central Bank of India stating that no payments were made to Mr. Bagri from their accounts, contradicting the allegations.

4. A discrepancy was found in the account numbers mentioned in the order, potentially due to a typographical error. The certificates from the bank indicated that the petitioner did not make the alleged payment to Mr. Bagri, raising doubts about the basis for initiating proceedings under Section 148/148A(d) of the Act.

5. Consequently, the court issued notice to the respondent, directing the filing of a counter-affidavit within four weeks. The matter was scheduled for the next hearing, with a stay on the operation of the impugned order and notice until further court orders, considering the lack of substantial information supporting the proceedings.

6. The judgment highlights the importance of accurate information and evidence in initiating tax reassessment proceedings and emphasizes the need for proper verification before taking action under the Income Tax Act. The court's decision to stay the operation of the order reflects a cautious approach pending further clarification on the discrepancies observed in the case.