Gulmuhar Silk Pvt Ltd. Vs ITO (Delhi High Court)
The Delhi High Court considered a writ petition filed by Gulmuhar Silk Pvt Ltd challenging the order dated 28th March, 2022 passed under Section 148A(d) of the Income Tax Act, 1961 for assessment year 2018-19, the show cause notice dated 7th March, 2022 under Section 148A(b), and the notice dated 28th March, 2022 under Section 148. The petitioner contended that the Section 148A(d) order was non-speaking and did not address its reply to the show cause notice. It was also stated that the order had been issued mechanically by relying on Investigation Wing information that allegedly had no rational nexus with the petitioner and related to assessment year 2014-15, while the reassessment concerned assessment year 2018-19.
The Court examined the impugned order and found that the respondent had recorded that the petitioner had not rebutted the statement made on oath by the entry provider. The order also referred to a search and seizure action conducted by DGGI, Ghaziabad under the CGST Act, 2017 at Shop No.10, Aman Banquet, Sector-5, Rajendra Nagar, Sahibabad, Ghaziabad on 18th and 19th 2018, which had reached the same conclusion. On this basis, the Court held that the impugned order was a speaking and reasoned order and found that the judgment in Kranti Associates Pvt. Ltd. & Anr. Vs. Mashook Ahmed Khan and Ors, SLP (C) No.20428/2007 did not apply.
