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TMI Blog2024 (12) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... ies as suspected then at least one limb of the transaction would necessarily be through banking channel. The petitioner had not produced any material to establish the credibility of Balaji Enterprises or Dev Sales Corporation. Petitioner submits that since the goods have been exported, it was also necessary to make the Customs department a party as the petitioner had availed duty drawback. This contention is also insubstantial. At the stage of issuance of notice under Section 148 of the Act, the AO is required to have reasons to assume that the income of the assessee has escaped assessment. Section 148A of the Act sets out a mechanism for ensuring that the AO s decisions are not based on any unfounded suspicion. The scheme thus, entails a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the impugned notice and the notice issued under Section 148 - Decided against assessee. - HON'BLE MR. JUSTICE VIBHU BAKHRU AND HON'BLE MS. JUSTICE SWARANA KANTA SHARMA For the Petitioner Through: Mr Prakash Sinha, Advocate. For the Respondent Through: Mr Abhishek Maratha, SSC, Mr Apoorv Agarwal, Mr Parth Samwal, JSCs, Ms Nupur Sharma, Mr Gaurav Singh, Ms Muskaan Goel, Mr Himanshu Gaur and Mr Kamakshraj Singh and Mr Yamit Jetley, Advocates for the Revenue VIBHU BAKHRU, J. (ORAL) 1. The petitioner has filed the present petition, inter alia, impugning a notice dated 22.03.2024 (hereafter the impugned notice) issued under Section 148A (b) of the Income Tax Act, 1961 (hereafter the Act) as well as the order dated 31.03.2024 (her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted and the AO passed an order dated 28.03.2022 under Section 148A (d) of the Act and also issued the notice dated 28.03.2022 under Section 148 of the Act seeking to reopen the assessment for the AY 2018-19. 4. The petitioner challenged the said order dated 28.03.2022 and the notice dated 28.03.2022 by filing a writ petition before this court being W.P.(C) No.3797/2023. The said petition was disposed of by an order dated 27.03.2023. 5. This court had noted that the petitioner had placed on record the returns filed in GSTR-2A, which had disclosed inward supplies. The supplies were from the dealers, which were registered under the relevant Goods and Services Tax Act. The Goods and Services Tax Identification Number (GSTIN) of the suppliers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also noted that the balance in the bank account was minimal and there was exceptionally high turnover in a short span. The bank account also indicated that the entries pertaining to the petitioner. The Investigation Wing informed that Balaji Enterprises (proprietor Sanjeev Sharma) was not engaged in any genuine business activities. 9. In addition, it is also alleged that the entry pertaining to the transaction entered into by the petitioner with Balaji Enterprises is for a sum of Rs. 1,44,56,180/-. It was also stated that they have the information that the petitioner had taken an accommodation entry of Rs. 61,34,006/- from one Dev Sales Corporation, which was a sole proprietorship concern of one Suresh Kumar. This was also found to be one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the aforesaid contention. A plain reading of the impugned order indicates that the AO has examined the relevant material and in particular the petitioner s contention that its purchases were genuine. The AO had noted that the petitioner had reflected that the purchases made from the concerns Balaji Enterprises and Dev Sales Corporation. The GST returns, also reflected the same. 15. The vendor Balaji Enterprises had filed its monthly GST returns (GSTR-01) for output sales, and therefore, the same were reflected in the petitioner s GST returns (GSTR-2A) as inward purchases. Similar is the case with the purchases made from Dev Sales Corporation. The AO had noted that the report was received from Investigation Wing [DDIT (Inv) Unit 6(2), N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 148A of the Act sets out a mechanism for ensuring that the AO s decisions are not based on any unfounded suspicion. The scheme thus, entails a preliminary enquiry, which in this case was done by the department. It is then followed by a notice under Section 148A (b) of the Act to enable the assessee to respond to the information that is available. The AO is required to consider the assessee s response under Section 148A (c) of the Act in taking an informed decision whether it is a fit case to reopen the assessment by passing an order under Section 148A (d) of the Act. This exercise is for a limited scope of merely determining whether the assessment is required to be reopened. It does not foreclose the assessee s contention regarding the g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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