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TMI Blog2024 (5) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... n further appears to have arisen on the conduct of the purchaser in not responding to any of the notices and summons issued. Third, the assessing officer has taken note, during the course of a search proceedings and upon recording of statement of a third party, it was also suggested that the 'purchaser' did not exist. Such facts had been clearly noted in the impugned order passed u/s 148A(d) of the Act. Petitioner had also pointed out that the purchaser company continues to exist and it is active on the MCA portal. As noted above, that was not a mandatory condition to be fulfilled, at this stage. Also, in absence of any obligation in law, to record a categorical finding to reject any particular objection (at this preliminary stage), no fault exists in the initiation of reassessment proceedings occasioned by an over all consideration of the 'information'/relevant material. As noted above, the 'suggestion' is clearly seen to have arisen on the own strength of the 'information'/relevant material. Thus, the subjective 'decision' that it is a 'fit case' to initiate reassessment proceedings, (notwithstanding the objection raised by the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tt Infra and Engineering Equipments Private Limited. On the basis of enquiries conducted by the Income Tax Department it has been established the M/s Everett Infra and Engineering Equipments Private Limited is not doing any actual business activities and providing accommodation entries. This company is involved in receiving and giving bogus contracts/sub-contracts and raising invoices without delivery of any actual goods/services. The company is merely working as entry/exit provider. As you have entered into the transaction with this bogus company which is involved in providing accommodation entries the supply of goods/services to this company also appears to be bogus. It leads to inference that you are also one of the participants the tax evasion mechanism of above company. The above information suggests escapement of income in your case. Please also refer to attachment of this show cause notice which encloses sheet containing details of information suggesting escapement of income in your case. The details of information has also been elaborately discussed in above para which may also be referred to. In the light information (as discussed in above para) suggesting escapement of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the reply of the assessee), whether it is a 'fit case' to initiate reassessment proceedings. That exercise has not been done. The order passed under Section 148A(d) of the Act is wholly non-speaking. It has been passed in a perfunctory manner with a pre-conceived notion. Therefore, the same may never be sustained as jurisdiction has not arisen to reassess the petitioner for the Assessment Year 2020-21. 7. On the other hand, learned counsel for the revenue would contend, the pre-requirement of 'reason to believe' has been done away. Therefore, the strict test of existence of such 'reason to believe'-to initiate reassessment proceedings cannot be reintroduced by reading the amended statute in the manner suggested. In his submission, insofar as show cause notice was issued to the petitioner and its reply was 'considered' before the impugned order [under Section 148A(d)] was passed, no procedural lapse has occurred. The manner or words in which decision has been recorded may not be justiciable and it may not be read in a manner as may resurrect or reintroduce the pre- existing requirement of recording of 'reason to believe' (as it existed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee, 2 [***] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39; (emerging from perusal of the 'information' i.e. objective/relevant material), that income had escaped assessment at the hands of the assessee. 13. True, in reaching such 'decision', the assessing authority is obligated to consider only that material that may be relevant (and not extraneous) and the reply that may have been furnished by the assessee, at the same time, it is not the statutory law that he must record specific/objective reasons to deal with each and every objection, that may be raised. The statute only requires an overall or broad consideration of the reply furnished by the assessee, to reach a 'decision' that it is 'fit case' to initiate reassessment proceedings. To read-recording of exact reasons (to reject any objection), into the language of Section 148A of the Act would be to indirectly reintroduce the requirement to record reasons to believe , as a pre-condition to initiate reassessment proceedings. That requirement of law has been specifically and completely, done away. 14. Thus, read in conjunction, Section 148A(b), (c) and (d) would require that assessing authority may not act whimsically or capriciously or on extraneous m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to the four addresses of the 'purchaser'. No direct evidence was disclosed by the petitioner, (in his reply), - to doubt the existence of that 'information'. The 'suggestion' as to escapement of income qua sales made to the (non-existing) 'purchaser', inheres in it. Thus, the 'information' is relevant to the 'suggestion' as to 'escapement of income' at the hands of the petitioner. 18. As to the non-existence of the 'purchaser', that satisfaction further appears to have arisen on the conduct of the purchaser in not responding to any of the notices and summons issued. Third, the assessing officer has taken note, during the course of a search proceedings and upon recording of statement of a third party, it was also suggested that the 'purchaser' did not exist. Such facts had been clearly noted in the impugned order passed under Section 148A(d) of the Act. 19. It may not be denied that the assessing authority has not recorded any reason to squarely deal with the further objection raised by the petitioner that there existed details of activity and income of the purchaser as was available on the website of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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