9911796707
TMI Blog2025 (1) TMI 1396X X X X Extracts X X X X X X X X Extracts X X X X ..... it is observed that information was received from the "Insight portal" that the assessee was a beneficiary of fake invoices. In this case, M/s Himadri Foods Ltd. has provided fake invoices to the assessee to the tune of Rs. 11.88 lakhs. In view of this information, the Ld. AO issued a notice under section 148 of the Income Tax Act, 1961 (the Act) after obtaining the prior approval of competent authority and passed an order under section 148A(d) of the Act dated 29.03.2022. In compliance to the notice issued under section 148 of the Act, the appellant filed a return of income on 17.06.2022. Subsequently, the ld. AO has issued notices under section 143(2)/142(1)/144 of the Act. Thus eight notices were issued by the AO and it was also mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was absolutely no compliance to all the statutory notices issued. In view of the same, the AO has completed the assessment under section 144 of the Act which deals with best judgment assessment. Accordingly the AO has made an addition under section 69 of the Act to the extent of Rs. 37.83 lakhs. 3. Aggrieved by the addition made by the Ld. AO, an appeal was filed by the appellant before the Ld. CIT(A). During the appeal proceedings before the ld. CIT(A), the Ld. AR of the appellant has stated that the appellant is engaged in the business of security service provider and provided only labour services to M/s Himadri Foods Ltd.. The Ld. CIT(A) confirmed the addition made by the AO stating that the appellant has not provided GSTR-I, P&L A/c, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Ld. CIT(A), audited financial statements, invoices issued by the appellant to M/s Himadri Foods Ltd., GST certificate of assessee, copy of audit report under section 44AB of the Act, Bank statements, service tax and GST returns were part of this PB. The Ld. AR of the appellant has argued that the reopening of the assessment itself is invalid and bad-in-law because the procedure was not followed by the ld. AO. The Ld. AR tried to demonstrate that the appellant is into providing only manpower services and never dealt with M/s Himadri Foods Ltd. with respect to purchase/sale of goods and whatever money received from M/s Himadri Foods Ltd. was only the consideration received for providing the manpower services. The Ld. AR of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) The assessment is validly re-opened which is observed from the assessment order and the appellant did not respond to the notices issued by the Department from time to time. Even before the Ld. CIT(A), the relevant information to show that the assessee is into providing manpower services, balance-sheet and P&L A/c, copies were not provided by the appellant. Based on the prima-facie evidence that there are certain credits from M/s Himadri Foods Ltd., the AO has completed the assessment by way of best judgment assessment in view of the above circumstances. (d) From the grounds of appeal filed before the ITAT, it is observed that the appellant wanted the addition to be deleted alternatively the case may be remanded back to AO for fresh co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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