An effective ruling which is notified on Monday ruled that the Delhi High Court has revoked a re-assessment notice under section 148A/148A(d) of the Income Tax Act, 1961 issued on the basis of reconciliation between the income tax returns and GST returns data.
The applicant (taxpayer), M/s Best Buildwell Private Limited before the high court challenging the re-assessment opposing, he has done purchasing from some non-filers. The taxpayer said to the court that the impugned order under Section 148A(d) of the Act laid on an alleged report made against the taxpayer firm. He supports his statement by saying that he does not receive any report.
A bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora revealed that the impugned show cause notice along with the impugned order under Section 148A(d) of the act would have a different base.
The Court stated “The show cause notice primarily states that “it is seen that the Petitioner has made purchases from certain non-filers”. However, no details or any information about these entities was provided to the Petitioner. It is not understood as to how the Petitioner was to know which of the entities it dealt with were filers or non-filers!.”
Revoking the notice, the Court ruled that “further, the impugned order states that a report was prepared against the Petitioner-company which concludes that the assessee had shown bogus purchases from bogus entities to suppress the profit of the company and reduce the tax liability during the years 2015-16 to 2020-21. However, no such report which forms the basis for the ‘information’ on which the assessment was proposed to be reopened had been provided to the Petitioner. In fact, there are no specific allegations in the show cause notice to which the Petitioner could file a reply.”
