2022 (12) TMI 800 - HC - Income Tax

Reopening of assessment u/s 147 - Notice issued to the present petitioner u/s 148A(b) - case of third party, who has alleged to have indulged in giving accommodation entries through various dummy persons - as argued scrutiny assessment has been completed and AO even if, has got the informations he is not paying heed to his request and the reply while passing an order u/s 148A(d) would amount to this being a mere ordeal - HELD THAT - As emphatically urged that there is not a single entry or transaction with Ganpati Textile or the search person. Issue Notice returnable on 19.12.2022. By way of interim relief, it is directed that the process of assessment shall continue with the cooperation of the petitioner, however, the final assessment order shall not be passed before the returnable date. Over and above the regular mode of service, service of notice through e-mode on the official e-mail ID is permitted.

Summary

Issues involved:
Challenge to order passed under Section 148A(d) of the IT Act and notice issued under Section 148 of the IT Act.

Analysis:
The judgment delivered by the Gujarat High Court involved a challenge to an order passed under Section 148A(d) of the Income Tax Act, 1961, and a notice issued under Section 148 of the IT Act. The case revolved around a search conducted on 12.04.2019 under Section 132 of the IT Act regarding alleged accommodation entries provided by a third party through dummy persons. The petitioner was accused of receiving non-genuine entries totaling Rs.10,677 from an entity controlled by the search person for the Assessment Year 2018-19. The respondent rejected the petitioner's submissions, leading to the challenge of the order dated 07.04.2022.

The petitioner contended that the respondent failed to consider the documents submitted in response to the notice. The petitioner's representatives argued that despite the completion of the scrutiny assessment for the Assessment Year 2018-19 on 06.04.2022, the Assessing Officer did not pay attention to the petitioner's request and reply. They emphasized that there were no transactions with the entity in question, Ganpati Textile, or the search person, challenging the validity of the allegations.

The High Court, after hearing the arguments, issued a notice returnable on 19.12.2022. As an interim measure, the court directed that the assessment process could continue with the petitioner's cooperation but prohibited the passing of the final assessment order before the returnable date. Additionally, the court allowed the service of notice through e-mode on the official email ID, ensuring proper communication and compliance with legal procedures.