ITO Vs Quality Steel Shoppe Private Limited (ITAT Visakhapatnam)
ITAT Vishakhapatnam held that reopening notice u/s. 148 being issued beyond period of three years on the basis of approval u/s. 151(ii) of the Income Tax Act obtained from Pr. Commissioner of Income Tax [Pr. CIT] instead of Principal Chief Commissioner or Principal Director General is invalid and liable to be quashed.
Facts- The assessee company had filed its return of income for AY 2018-19 on 15/09/2018, declaring an income of Rs. NIL. Subsequently, the Jurisdictional Assessing Officer based on information that the assessee company which was engaged in the business of trading of steel had fraudulently availed Input Tax Credit based on the fake inward GST invoices issued by M/s. Hero Wiretex Ltd., on bogus purchases of Rs.4,24,70,696/-, reopened its case and passed an order under clause(d) of section 148A of the Act, dated 01/04/2022.
AO concluded that the assessee company had availed Input Tax Credit based on fake inward GST invoices of Rs. 4,24,70,696/-that were issued by M/s. Hero Wiretex Private Limited. Thereafter, the AO vide his order passed u/s. 147 r.w.s. 144 r.w.s 144B of the Act, dated 02/02/2024 made an addition of Rs. 4,24,70,696/- by treating the same as unexplained expenditure u/s. 69C of the Act.
