CA certificate stating NIL dealings with party isn’t sufficient to drop SCN issued u/s 148A(b): HC
- Blog|News|Income Tax|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 22 December, 2022
Latest from Taxmann
Case Details: Barbrik Projects Ltd. v. Union of India - [2022] 145 taxmann.com 481 (Chhattisgarh)
Judiciary and Counsel Details
-
- Arup Kumar Goswami, CJ. & Deepak Kumar Tiwari, J.
- S. Rajeshwar Rao, Adv. for the Appellant.
- Ramakant Mishra & Ms Naushina Afrin Ali, Adv. for the Respondent.
Facts of the Case
Assessee was a company engaged in the execution of civil construction works. The Assessing Officer (AO) issued a show cause notice under section 148A. AO had information that the assessee was a beneficiary of bogus sale transactions amounting to Rs. 2 crores.
The assessee submitted its reply that it hadn’t undertaken any such transaction. It also furnished a certificate from a Chartered Accountant certifying that the assessee hadn’t executed any transaction.
However, AO passed the order under section 148A(d) and also issued a notice under section 148. The assessee filed a writ petition against the order passed under section 148A by AO.
High Court Held
The Chhattisgarh High Court held that the assessee wanted the proceedings to be dropped merely based on a certificate issued by a Chartered Accountant.
The GST Portal showed sales to the assessee by entity Panveer Trading Private Limited. It was found that such an entity is selling tax invoices (accommodation entries) without a corresponding supply of goods. The assessee did not counter the allegations of bogus purchases from the entity except by furnishing a CA certificate to the effect that the assessee had not executed any such transaction.
Thus, there was, prima facie, some material based on which the Department could reopen the case. The assessee had not even attempted to assert that the material facts relied on upon the SCN are erroneous. In view of the above, the assessee’s writ petition was to be dismissed.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
