Amar Jewellers Ltd. Vs ACIT (Gujarat High Court)
The writ applicant challenged a notice issued under Section 148 of the Income-tax Act for Assessment Year 2013-14 seeking reopening of its assessment. The company, engaged in the business of gold and jewellery, had been subjected to a search under Section 132 along with the Amar Group. Pursuant to the search, assessment proceedings under Sections 143(3) read with 153A were completed without making any addition in respect of purchases made from Swastik Corporation. Subsequently, a notice under Section 148 was issued proposing to reopen the assessment on the basis of information received from the Investigation Wing regarding alleged bogus purchase transactions.
The recorded reasons for reopening referred to information received from the Investigation Wings at Mumbai and Surat. During a survey conducted under Section 133A in the case of Shri Bijal Ashok Shah, proprietor of Swastik Corporation, he allegedly admitted that he was engaged in providing accommodation entries without actual purchase or sale of goods. Based on this information, the Assessing Officer formed a belief that purchases amounting to ₹29,94,900 claimed by the assessee from Swastik Corporation were bogus and had resulted in escapement of income. The Assessing Officer also recorded that the assessee had failed to fully and truly disclose all material facts necessary for assessment.
