JUDGMENT :

[Arup Kumar Goswami, J.]

1. Heard Mr. S. Rajeshwar Rao, learned counsel, appearing for the appellant. Also heard Mr. Ramakant Mishra, learned Deputy Solicitor General, appearing for the respondent No. 1 as well as Ms. Naushina Afrin Ali, learned counsel, appearing for the respondents No. 2 to 4.

2. This writ appeal filed by the petitioner is presented against an order dated 28.07.2022 passed by the learned Single Judge in WP(T) No. 186/2022 dismissing the writ petition. The writ petition was filed challenging the order dated 31.03.2022 passed by the Assessing Officer (for short, the AO) under Section 148-A of the Income Tax Act, 1961 (for short, the Act) and the notice issued under Section 148 of the Act.

3. The petitioner is a company engaged in execution of civil construction works and it had filed return of income tax under Section 139(1) of the Act for the Assessment Year (for short, AY) 2018-2019 on 26.03.2019 declaring total income at Rs.43,14,13,840/-. A notice under Section 143(2) of the Act was issued to the assessee on 23.09.2019. By an order dated 12.04.2021 passed under Section 143(3) of the Act, the total income was determined as per the return. Thereafter, the AO, i.e., the respondent No. 4 issued a show cause notice (for short, the SCN) under Section 148A(b) of the Act on 24.03.2022 stating that he has information which suggests that income chargeable to tax for the AY 2018-2019 has escaped assessment within the meaning of Section 147 of the Act. Alongwith the said SCN, details of the information was enclosed as Annexure A and the assessee was asked to show cause as to why in view of the details contained in Annexure A, notice under Section 148 of the Act should not be issued. The assessee was accordingly asked to submit its response to the extent technologically feasible, with supporting documents, if any, electronically in ‘e-proceeding’ facility through its account in e-filing portal on or before 30.03.2022. It was indicated that the said notice was issued after obtaining prior approval of the Principal Commissioner of Income Tax (Central), Bhopal, dated 24.03.2022.

4. It will be appropriate to extract Annexure A at this juncture for better appreciation:

“SHOW CAUSE NOTICE, NOTICE U/S 148A(b) OF THE I.T. ACT, 1961 IN THE CASE OF SHRI BARBRIK PROJECT LIMITED, PAN: AADCB4662P FOR A.Y. 2018-2019

Consequent to the information under High Risk CRIU/VRU cases obtained from Insight portal, this office is in possession of information that M/s. Panveen Trading Private Limited has certain transaction with you. M/s. Panveen Trading Private Limited has shown sale of Rs.2,20,00,275/- to Barbarik Project Limited during the financial year 2017-2018.

However, on the basis of Credible information is received that M/s. Valeska Trading Private Limited, M/s. Panveer Trading Private Limited & M/s. Shwetpushp Commercial Private Limited were found indulging generating and selling of tax invoices to various entities without physical supply of underlying goods/services for passing irregular input tax credit to other business entities and for doing this they have also availed and utilized Input Tax Credit (ITC) against fake invoices issued by others.

As per detailed information available with this office, you are beneficiary of transaction for an amount of Rs. 2,20,00,275/- made during the financial year 2017-2018 relevant to the A.Y. 2018-19 in the form of accommodation entry.

In view of the above discussion, it is evident that income chargeable to tax amounting to Rs.2,20,00,275/- has escaped assessment for A.Y. 2018-2019 and this is a fit case for issue of notice to show cause u/s. 148A(b) of the Income Tax Act, 1961. You are therefore requested to show cause as to why a notice u/s. 148 should not be issued on the basis of the above flagged information.

By the show cause notice, you are being provided an opportunity of being heard