R.K. Bullion Vs ACIT Central and Others (Madhya Pradesh High Court)
In the case of R.K. Bullion Vs ACIT Central and Others, the Madhya Pradesh High Court addressed the legality of a reassessment notice issued under Section 148A of the Income Tax Act, 1961. The petitioner, R.K. Bullion, a partnership firm dealing in gold and silver bullion, challenged an order passed on 28.03.2024, which directed reassessment for the Assessment Year 2017-18. The firm had previously filed its income tax return for the relevant period on 31.08.2017, which was accepted after scrutiny. However, a subsequent investigation prompted a reassessment due to alleged unreported income linked to accommodation entries provided by M/s Vivek Jewellers.
Background and Proceedings:
The case stemmed from a series of search and seizure operations. The first operation, conducted on 05.01.2017 at Jindal Bullion Limited (JBL), led to the issuance of notices under Section 153C for AY 2015-16 and AY 2017-18. A second search, on 08.05.2019, targeted M/s Vivek Jewellers and its proprietor, Nikhil Soni. These investigations revealed that R.K. Bullion received RTGS credits amounting to Rs.6.39 crores during the demonetization period from the bank account of Vivek Jewellers, which allegedly served as accommodation entries.
Following these revelations, the Income Tax Department issued a notice under Section 142(1) asking for ledgers of related businesses. The petitioner was also informed of potential penalties for inaccurate reporting in earlier assessments. Despite detailed responses from R.K. Bullion, a further reassessment under Section 148A(d) was initiated, asserting that income had escaped assessment due to the unaccounted funds.
