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TMI Blog2024 (4) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... documents have been placed on record by the petitioner, as referred hereinabove. Thus we are of the opinion that the impugned order and the notice are required to be quashed and set aside remanding the matter back to the Assessing Officer to pass a fresh order under Section 148A(d) of the Act within a period of four weeks from the date of receipt of the copy. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Petitioner(s) No. 1 : Mr Tushar Hemani Senior Advocate With Ms Vaibhavi K Parikh (3238) For the Respondent(s) No. 1 : Mr Karan Sanghani Advocate With Mrs Kalpana K Raval (1046) ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) [1] By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 13th April 2022 issued under Section 148 of the Income Tax Act, 1961 (for short, the Act ) for the Assessment Year 2018-19. [2] The brief facts of the case are as under: [2.1] The petitioner is a company incorporated under the Companies Act, 1956. The petitioner filed return of income showing total income of Rs. 61,24,830/- for the Assessment Year 2018-19. [2.2] The respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purchases in question. Following documentary evidences of purchase, delivery and payment were also furnished: ▪ Ledger of SK Enterprises ▪ Invoices with respect to purchases; ▪ Relevant delivery notes/challans; ▪ Transport receipts; ▪ Relevant extract of bank statements; Purchase of Yarn was made from S.K. Enterprises for self-consumption as raw material. GST registration of S.K. Enterprises was in existence when purchases in questions were made by the petitioner and even cross verification of sales made by the said party to the petitioner has been carried out by the petitioner on GST Portal. Subsequently, GST Department had cancelled the GST registration of the said party on 11.09.2019. There is no logic in the petitioner company availing fake invoices for bogus ITC as alleged by the department, since the petitioner always has excess ITC , as is verifiable from the unutilized GST credit balance. There is no escapement of income chargeable to tax, an alleged in the show cause notice. The said fact is evident from the followings: ▪ Gross profit ratios as well as Net profit ratios of processing division as well as yarn division for the year in q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully considered, but none of the documentary evidence placed on record including the delivery notes/challans showing delivery of the goods, copy of transport receipts placed on record received, delivery of goods received by the petitioner are taken into consideration and simply relied upon the information received by the risk management strategy formulated by the CBDT. [4] It was submitted that the petitioner has raised objection with regard to issuance of notice under Section 148 of the Act giving all the details with regard to the transactions with M/s. S. K. Enterprises, however, the respondent Assessing Officer, without considering such details, has decided on the basis of the information received by him only that it is a fit case to reopen the assessment. [5] It was, therefore, submitted that starting point of the inquiry i.e. information has resulted into the decision on the basis of information only ignoring the details of the documents placed on record by the petitioner to show, prima facie, that there is no escapement of income as the petitioner has received the goods, which is supported by the material in the form of delivery challans and transport receipts. [6] On the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads as under: 10. The reply of the assesses has been carefully considered but not found tenable for the reason that is proved that at no point of time, M/s. S.K. Enterprises purchased any actual physical goods. Further, it is also found that M/s. S. K. Enterprises is involved in generating sales bills and passing GST credit to buyers without any movement of good. M/s. S. K. Enterprises has passed on GST credit of Rs. 17.59 Crores to buyers without actual movement of goods. Further the assessee has not provided the corroborative evidence in the form of payment of GST or produced any challan in support of the same. Further the assessee has accepted that it has made purchases of Rs. 60,91,125/- from M/s. S.K. Enterprises which is found to be a legal entity existing only on paper and is dummy concern and was created to defraud and to provide bogus invoices/bills to the buyers, the assessee firm being one such entity. M/s. S. K. Enterprises has provided GST ITC credit of Rs. 60,91,125/- to the firm without actual supply of goods on such invoices. Thus, it is logical to conclude that the assessee has no proper proof and corroborative information with respect to the guilelessness of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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