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TMI Blog2024 (5) TMI 1480X X X X Extracts X X X X X X X X Extracts X X X X ..... l Faceless Assessment Centre ; (b) to issue a writ of certiorari or any other writ, order or direction in the nature of certiorari quashing the impugned order dated March 22, 2024 passed by the respondent under section 143(3) read with section 144B of the Act along with computation sheet, notice of demand issued under section 156 and the notice issued under section 274 read with section 270A of the Income-tax Act, all dated March 22, 2024 ; (c) to prohibit the Department from recovering the demand raised in pursuance to such impugned assessment order ; and (d) to pass any other order or orders that may deem fit and proper in the facts and circumstances of the case." 2. Although we had dismissed the writ petition on May 2, 2024, beari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the total amount of Rs. 1,09,94,13,227 and Rs. 5,93,745 have been shown as expenditure relating to entities not registered under the goods and services tax. It is also found from form 3CD of the audit report that the assessee has deducted tax at source under section 194C of the Act on the payment made only on Rs. 38,62,809 to registered entity under the goods and services tax. In this regard, a request was made to submit the details of direct expense (carriage inward expenses), i.e., name, permanent account number and address of the entity to whom payment was made along with amount and method of payment with copy of ledger through notices issued under section 142(1) of the Income-tax Act. But the assessee has not furnished any deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause why the proposed variation should not be made and the assessment should not be completed accordingly." 5. As is evident from the aforesaid extract of the show-cause notice, the Assessing Officer had in clear and unequivocal terms placed the petitioner- assessee on notice with respect to the doubts harboured by it relating to the correctness and completeness of the accounts of the assessee. The Assessing Officer had further observed that since the expenditure claimed is not verifiable, income was proposed to be assessed at 12 per cent. of the total disclosed revenue after rejecting the books of account. The submission, therefore, that the petitioner had not been apprised of the proposed rejection of the books and variation in in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,94,13,227 and Rs. 5,93,745 have been shown as expenditure relating to entities not registered under the goods and services tax for which only details have been submitted. In these circumstances, the expenses incurred by the assessee is not verifiable. In view of the above discussion, it cannot be accepted that the expenses shown by the company to entities is genuine or reliable. In view of the above the books of account is also not reliable. Accordingly, income of the assessee is assessed at a total income of Rs. 13,97,41,420 (i. e., 12 per cent. of total revenue from operation) after rejecting the books of account under section 145(3) of the Income-tax Act. Penalty proceeding under section 270A of the Income-tax Act is also initiated for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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