Vinayak Traders Vs ITO (ITAT Jodhpur)
Notice u/s. 148 issued by Jurisdictional AO is bad as assessment is carried out by Faceless Assessment Unit
ITAT Jodhpur held that reassessment notice under section 148 of the Income Tax Act issued by Jurisdictional Assessing Officer is bad and invalid since the same needs to be issued by National Faceless Appeal Centre. Thus, assessment order passed thereon is quashed.
Facts- Assessee is engaged in the business of wholesale and retail trade of Macro Max Mobiles. ROI of the assessee was reopened on receipt of information through insight portal wherein it is mentioned that one firm M/s. Sonu Monu Telecom Centre Pvt. Ltd. is involved in the practice of issuing bogus sales/purchase bills.
The show cause notice was issued to the assessee under Clause-b of Section 148. Therefore, the order u/s. 148A(d) was issued to the assessee on 27.03.2022 stating that income of the assessee chargeable to tax for the A.Y. 2018-19 has escaped assessment.
AO noted that assessee has failed to prove receipt bills, transportation, loading and unloading and godown details with respect to the sale. Therefore, AO has made an addition of Rs.85,69,197/- stating that sales consideration received by the assessee is from non existing entity, found in the books of account of the assessee, therefore, the addition u/s. 68 r.w.s. 115BBE of the Act.
