Principal Chief Commissioner of Income Tax & Ors. Vs Vasuki Global Industries Limited (Supreme Court of India)
The matter before the Court arose from reassessment proceedings initiated by the Income Tax Department based on information available on the Insight Portal, which was derived from GST authorities. The petitioner contended that such information was incorrect and had already been clarified by the GST authorities, yet reassessment proceedings continued against various assessees who had transacted with the petitioner.
The Supreme Court condoned the delay and issued notice, observing that the petitioner had raised a substantial issue regarding the interpretation of Section 148A(1) of the Income Tax Act. Specifically, it was argued that the High Court’s observations effectively reintroduced a requirement of inquiry prior to issuing notice under Section 148A(1), which had been consciously removed by legislative amendment.
As reflected from the record and the High Court proceedings, the case involved a situation where the Income Tax Department relied on GST-based information uploaded on the Insight Portal and issued notices to multiple suppliers and buyers of the petitioner for reopening assessments. However, the GST Department later clarified that the petitioner was not involved in the alleged fraud, and the inquiry against it had already been concluded.
