Harsh Jindal Pranshu Goel Vs ITO (ITAT Delhi)
GST Information Was Sufficient to Reopen Alleged Bogus-Purchase Case; Delhi ITAT Remands Merits to CIT(A)
The assessee filed his return for AY 2018-19, declaring taxable income of ₹12,69,970. Based on information received through the Insight Portal, the Department alleged that he had obtained bogus purchase entries of ₹77,71,894 from concerns connected with Deepak Sharma.
A search conducted in the case of Deepak Sharma revealed that two GST registrations—Shri Salasar Balaji Industries and GS Industries-were linked to his PAN. The GST registration of GS Industries had been cancelled suo motu from 10 October 2017. No books of account or stock relating to the stated metal-trading business were found at the declared premises, giving rise to the allegation that the concerns were engaged in providing accommodation entries.
The assessee argued that the reassessment was invalid because the satisfaction for reopening had been recorded before Deepak Sharma’s statement dated 14 July 2022 was recorded.
The ITAT rejected this jurisdictional contention. It held that the reopening was not dependent solely upon the later statement. The information already available from the official GST portal, including the GST registrations, cancellation and suspected non-genuine business activity, was sufficient to form a prima facie view that income had escaped assessment.
