TMI Blog2023 (10) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... that Respondent could rely upon in support of his stance that there was material available to establish under-invoicing being carried on. At the highest, what can be stated in favour of the respondents/revenue is that Mr Ankit Jain has accepted the fact that cash transactions were made outside the books of account. Significantly, there is, however, no reference to the petitioners/assessees. Revenue has not been able draw our attention to any part of the statement which refers to the petitioners/assessees - respondent in our view, cannot but accept that the documents evidencing approval, if any, granted for commencement of reassessment proceedings against the petitioners/assessees ought to have been furnished to the petitioners/assessees. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are that they are beneficiaries of accommodation entry provided by one Mr Ankit Jain, proprietor of Rishabh Trading Company. 6. The value of the accommodation entry adverted to in the notice dated 23.03.2023, issued under Section 148A(b) of the Income Tax Act, 1961 [in short, Act ], has been pegged at Rs. 1,15,10,016/-. 7. It is not in dispute that the petitioners/assesses filed two replies i.e., dated 31.03.2023 05.04.2023 to the aforementioned notice. 7.1 In the reply, the petitioners/assessees took the stand that they had purchased goods worth Rs. 70,10,016/- from Rishabh Trading Company and also sold goods worth Rs. 45 lakhs to the said entity. 8. The writ petitioners/assessees asserted that both sets of transactions are genuine and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby, he has averred that the transaction entered into with the petitioners/assessees were genuine. 13. Mr Goel says that the petitioners/assessees had offered to present Mr Ankit Jain before the AO for examination with regard to the transaction entered into with the petitioners/assessees. 14. On the other hand, Mr Agarwal submitted that the AO would have the relevant material available with him which persuaded him to trigger the reassessment proceedings against the petitioners/assessees. 15. In support of this plea, Mr Agarwal has drawn our attention to the answer furnished by Mr Ankit Jain in response to query no.18. 15.1 Since the statement was made by Mr Ankit Jain in Hindi, a translated copy of the statement, in English, has been place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers to the petitioners/assessees. 17.1 Furthermore, Mr Agarwal, in our view, cannot but accept that the documents evidencing approval, if any, granted for commencement of reassessment proceedings against the petitioners/assessees ought to have been furnished to the petitioners/assessees. 18. Thus having regard to the aforesaid facts and circumstances, we are of the view that best option available to the AO would be to go back to the drawing board and if deemed necessary, reinitiate the proceedings against the petitioners/assessees, albeit, as per law. 19. Accordingly, the impugned notices and order are set aside with liberty to the AO to recommence the proceedings, having regard to what is stated hereinabove. 20. The writ petition is dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
