MULTIMETALS LIMITED Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This petition is filed seeking quashing of order dtd. 28/3/2022 passed under Sec. 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').

(2.) The relevant facts are that the petitioner is engaged in manufacturing of Seamless Extruded Copper, Nickle, Aluminum, Brass and related products. The petitioner filed income tax return for assessment year 2018-19 declaring income of Rs.10,97,83,780.00. Notice dtd. 14/3/2022 under Sec. 148A(b) of the Act was issued stating that the income tax department had information of petitioner having made bogus purchases from M/s.Flash Forge Pvt Ltd. (hereinafter 'company'). The notice was responded to on 17/3/2022 wherein the petitioner denied to have made any purchases from company. Rather the stand taken was that the petitioner had made sales to the company. In continuation of the notice, communication dtd. 20/3/2022 was issued wherein the petitioner was asked to explain the transactions with company. The petitioner filed reply on 21/3/2022 explaining the sales to the tune of Rs.1,22,46,936.00 made to company. Along-with reply the purchase orders, copy of letter of credits, invoices wherein the GST was separately charged, dimension report, mill test certificates, deliver challan/ packing list, transport bilties and copy of sales register were annexed.

(3.) The AO decided that it is a fit case to proceed under Sec. 148 of the Act holding that the evidence of sending the material to the premises of the company was not produced and it was a case of an accommodation entry by getting bogus invoices.