Amit Gupta Vs ACIT (Delhi High Court)
Delhi High Court has issued a notice in a writ petition challenging a reassessment order and notice under Sections 148A(d) and 148 of the Income Tax Act, 1961, for Assessment Year 2018-19. The case, involving petitioner Amit Gupta against the Assistant Commissioner of Income Tax (ACIT), centers on allegations of the petitioner engaging in bogus sales and subsequently returning cash to purported buyers. While allowing the Assessing Officer (AO) to continue with the assessment proceedings, the High Court has stipulated that any adverse order shall not be given effect without further court directions, and crucially, has directed the AO to furnish material substantiating the cash repayment allegations.
The proceedings against Mr. Gupta were initiated following a survey conducted on entities identified as VKC Nuts Pvt. Ltd. (VKCPL) and Arham Foods, a proprietorship concern of Smt. Veena Jain. The primary accusation by the AO was that Mr. Gupta had participated in a scheme where he allegedly engaged in fictitious sales and then repaid the received funds in cash to the supposed buyers. Three specific transactions were flagged in the notice issued under Section 148A(b) dated March 23, 2022, with a cumulative value pegged by the AO at Rs. 1,91,27,786.
