Bysol Enterprises Pvt Ltd. vs. Assistant Commissioner of Income Tax, Circle 4 (1) (1), Mumbai

Parties Involved

Facts Summary

The assessee, Bysol Enterprises Pvt Ltd., filed its return of income for Assessment Year 2017-18 reporting a total income of Rs. 6,05,000. Subsequently, the Assessing Officer received information suggesting that the assessee had inflated its purchases by arranging bogus purchase bills from KMP and Sons Trading Ltd. amounting to Rs. 4,66,01,531. This led to the initiation of reassessment proceedings under section 148 of the Income Tax Act. The reassessment proceedings were complicated by amendments introduced by the Finance Act, 2021, which led to jurisdictional issues that were addressed by the Supreme Court in Union of India vs. Ashish Agarwal and Union of India vs. Rajeev Bansal. The Assessing Officer issued a notice under section 148 on 07.04.2021, which was under the erstwhile regime. Following the Supreme Court's directions, the Assessing Officer obtained necessary satisfaction and issued a subsequent notice on 19.07.2022 under the new regime.…

Legal Issues

• 1. Whether the reopening of the assessment and the assessment as completed is illegal, invalid, without jurisdiction, on borrowed satisfaction, without independent application of mind, violative of the principle of natural justice.
• 2. Whether the orders and notices issued under section 148A and 148 of the Income Tax Act are in contravention of the provisions of section 151A and Notification No. 18/2022.
• 3. Whether the order passed under section 148A(d) and the notice issued under section 148 of the Act are without proper sanction under section 151 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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