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TMI Blog2024 (10) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... scaped assessment. Although, the petitioner had produced documents in support of its claim that the purchases were genuine, however, it had not produced any other material to establish that the said two named entities were creditworthy or were of any substance. It is neither necessary nor apposite for this Court to proceed on an adjudicatory exercise regarding the allegations made in the notice as that is the matter which is to be considered by the AO in the reassessment proceedings. Suffice to say that the AO had sufficient grounds that suggest that assessee s income for the AY 2020-2021 has escaped assessment. The present petition is dismissed. - HON'BLE MR. JUSTICE VIBHU BAKHRU AND HON'BLE MS. JUSTICE SWARANA KANTA SHARMA For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Strategy formulated by CBDT on Insight Portal under the head High Risk Transaction CRIU/VRU that the assessee during the F.Y. 2019-20 relevant to AY, 2020-21 has entered into the following suspicious transactions: Information Source PAN Information Source Information Type Information Description Information Value (Rs.) ACXFS9958A S.P Trading Others Bogus purchase 22,12,474/- AYDPN2775J N B Agency Others Bogus Purchase 87,37,811/- Total 1,09,50,285/- 2. As per records, the assessee, Shri Raghav Garg has filed return of incomefor the A.Y. 2020-21 declaring income of Rs 7,55,880/-. In this case, information was received from Investigation Wing that Shri. Raghav Garg had made bogus purchase of Rs. 22,12,474/- from M/s S.P Trading. and made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said notice on 01.04.2024 and had enclosed copy of the invoices, E-way bill and lorry receipts as well as a copy bank statement in support of its contention that its purchases from the two named suppliers, M/s. S.P. Trading and M/s N.B. Agency, were genuine purchases. However, there was no material placed regarding the creditworthiness of the said entities or any other material to establish that they were in fact physically functioning at their given address. 4. The AO considered the petitioner s response and had proceeded to issue the notice dated 12.04.2024 under Section 148 of the Act. The impugned order indicates that the AO had examined the petitioner s response but did not find it persuasive to refrain from issuing a notice under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uing notice u/s 148 of the Act for the A.Y. 2020-21. 5. It is relevant to note that at this stage of reopening of assessment, it is not necessary for the AO to finally determine the controversy. 6. In Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.: (2007) 291 ITR 502 , the Supreme Court held as under: 19. Section 147 authorises and permits the assessing officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. The word reason in the phrase reason to believe would mean cause or justification. If the assessing officer has cause or justification to know or suppose that income had escaped assessment, it can be said to have reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principle enunciated in the said decision is equally applicable post the amendment of Section 147 and 148 of the Act. The limited question to be addressed is whether the AO has grounds that suggest that the petitioner s income has escaped assessment notwithstanding the petitioner s response to the notice dated 30.03.2024. 8. As noted above, the principal allegation is that the petitioner had availed the accommodation entries from two above-named suppliers who were found to be non-existent by the investigation wing of the tax department. Clearly, the said information leads to the suggestion that the petitioner s income for the relevant Assessment Year escaped assessment. 9. Although, the petitioner had produced documents in support of its ..... X X X X Extracts X X X X X X X X Extracts X X X X
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