Gujarat High Court
Vasuki Global Industrial Limited ... vs Principal Chief Commissioner Of Income ... on 15 October, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/13472/2024 ORDER DATED: 15/10/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 13472 of 2024
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VASUKI GLOBAL INDUSTRIAL LIMITED (FORMERLY VASUKI TRADELINK PRIVATE LIMITED)
Versus
PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX & ORS.
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Appearance:
MR B S SOPARKAR(6851) for the Petitioner(s) No. 1
DS AFF.NOT FILED (N) for the Respondent(s) No. 2,3,4
MR.VARUN K.PATEL(3802) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 15/10/2025
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) Heard learned advocate Mr.B.S.Soprakar for the petitioner and learned Senior Standing Counsel Mr.Varun K. Patel for the respondent.
1. This matter is unique as the respondent- Income Tax Department has relied upon the information available on Insight Portal by sending notices to the suppliers of the petitioner for re-opening considering the report received from the GST Department which was later on corrected by the GST Department exonerating the petitioner from any lapses Page 1 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined under the provisions of the GST Act. However, the Income Tax Department continued the re- assessment proceedings of various assessee who are suppliers of the petitioner on the basis of the information which was available on the Insight Portal.
2. The petitioner therefore received the feedback from the suppliers, and the suppliers have stopped transacting the business with the petitioner. The petitioner therefore drew the attention of the respondent-Income Tax Department and corrective steps have been taken by the respondent-Income Tax Department to see that no re-assessment is made in the case of the suppliers of the petitioner on the basis of the information relating to the Page 2 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined petitioner which was made available on the Insight Portal.
3. This petition is pending since 2024 and since last one and half years, the respondent- Income Tax Department has placed on record the details by filing various affidavits to demonstrate that the necessary actions are taken at its end to resolve the issue of re- assessment in case of the suppliers of the petitioner on the basis of the information which was made available on the Insight Portal.
4. It would be therefore necessary to refer to the facts in brief emanating from the record so that in future, such actions are not taken by Page 3 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined the respondent-Department on the basis of the information available on the Insight Portal by the respective Assessing Officer without verification with the assessee as provided either under Section 148A(a) of the Income Tax Act, 1961 (for short 'the Act') which was prevalent till 1st September, 2024 and thereafter, under Section 148A(1) of the Income Tax Act,1961.
4.1. The petitioner is engaged in the business of trading of coal. On 15th January, 2021, summons was issued by the Director General of GST Intelligence, Gandhidham under Section 70 of the Central Goods and Services Tax Act, 2017 (for short 'the CGST Act'). Page 4 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025
NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined 4.2. The statement of the Director of the petitioner was recorded on 2nd February, 2021 and by order dated 06.09.2021, the inquiry against the petitioner was concluded by the competent authority on payment of total tax, applicable interest and penalty as per the provisions of the GST Act.
4.3. The petitioner thereafter received the summons dated 06.06.2022 issued by the respondent No.4-Deputy Director of Income Tax (Investigation-I), Rajkot under Section 131(1A) of the Act.
4.4. The petitioner appeared before the respondent No.4 and filed reply dated 04.07.2022 by Email and supplied the details Page 5 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined which were called for.
4.5. The petitioner thereafter received summons on 27.10.2023 and 26.11.2023. The petitioner did not provide any further details as the details were already provided on 04.07.2022.
4.6. It is the case of the petitioner that thereafter, the notices under Section 148A(b) of the Act were issued to the various buyers and sellers who transacted with the petitioner on the premise that as per the information shared by the Director General of GST Intelligence (for short 'the DGGI'), the petitioner is involved in GST invoice fraud and that the petitioner was found to be Page 6 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined availing or passing on fraudulent Input Tax Credit on fake invoices of the ferrous waste and scrap, soya beans and coal and that DGGI, Ahmedabad had registered a case on 3rd February, 2021 against various entities including the petitioner and such case would establish that the petitioner is formed just to pass fake Input Tax credit.
4.7. The petitioner therefore was subjected to queries raised by its various buyers and sellers for issuance of such notices. The petitioner therefore wrote a letter dated 10th March, 2024 to the Chairman, Central Board of Excise and Customs, Directorate General of GST Intelligence, the respondent No.1-Principal Chief Commissioner of Income Tax, Ahmedabad, Page 7 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined respondent No.2-Director General of Income Tax (Investigation), Ahmedabad and respondent No.3-Principal Commissioner of Income Tax, Rajkot clarifying that it was one Varuni International and not the petitioner-Vasuki Global Industries Limited formerly known as Vasuki Tradelink Private Limited which was subjected to alleged bogus fake invoices and passing of the Input Tax Credit. It was also pointed out that the registration number of the Varuni International was cancelled by the GST authorities whereas, registration of the petitioner was very much active and the petitioner is undertaking genuine business of large quantity and is also subjected to audit by GST Department and the allegations made in Page 8 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined various notices issued under Section 148A(b) of the Act to various buyers and sellers of the petitioner-Company are based on incorrect information on the Insight Portal of the Income Tax department.
4.8. The respondent No.1 sought clarification from the DGGI, Gandhidham vide letter dated 12.03.2024 pursuant to the letter of the petitioner. The DGGI, Gandhidham by letter dated 16th March, 2024 confirmed that the inquiry conducted against the petitioner was on limited grounds and the same is closed. The DGGI Gandhidham also sought for the copy of the report based on which, the Income Tax authorities reported the petitioner as fake firm.
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined 4.9. The petitioner thereafter, on 18th March, 2024 again informed the various authorities and impressed upon them that there was a mistake in mentioning the name of the petitioner as bogus entity created to pass fake ITC and petitioner is not involved in GST invoice fraud as alleged in the notices issued under Section 148A(b) of the Act to various buyers and sellers of the petitioner-Company. 4.10. The petitioner has also come to know about the dropping of the proceedings under Section 148 after passing order under Section 148A(d) of the Act in case of one Marquina Coal and many more assessee to whom such notices were issued within the range of the Page 10 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined respondent No.3-Principal Commissioner of Income Tax, Rajkot. However, in many other cases, the order under Section 148A(d) were passed along with the notice under Section 148 of the Act for re-opening of the assessment in case of the various assessee who transacted business dealings with the petitioner-Company. 4.11. The petitioner, thereafter, vide letter dated 06.06.2024 addressed to the respondent No.3-Principal Commissioner of Income Tax, Rajkot requested to stop the assessment initiated on incorrect grounds in case of the assessee on the basis of the incorrect information made available to the various Assessing Officers regarding the involvement of the petitioner being a bogus entity on the Page 11 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Insight Portal.
4.12. The petitioner has therefore preferred this petition with a prayer to direct the respondents to forthwith remove from its portal incorrect information in relation to the petitioner on the basis of the alleged earlier information received from the GST Authorities and correct the same on the basis of the latest information received from GST Authorities and to intimate all concerns that no action needs to be taken on the basis of the information originally circulated and that action, if any, taken needs to be dropped. 4.13. After issuance of the notice by this Court, learned Senior Standing Counsel Page 12 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Mr.Varun K. Patel for the respondent informed the Court during the course of hearing on 23rd December, 2024 that he has received the instructions to the effect that corrective steps have been taken by the respondent- Authority in the matter and the same would be placed in the detailed affidavit. 4.14. Thereafter, on 11th February, 2025, learned Senior Standing Counsel Mr.Varun Patel tendered an affidavit-in-reply filed on behalf of the respondents wherein, following averments were made with regard to the corrective steps having been taken by the respondent-Authority:
"3.20. Thereafter, the office of PCCIT, Page 13 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Gujarat by letter dated 21.03.2024 has forwarded the said clarificatory letter of DGGI dated 16.03.2024 to different Income Tax authorities, viz. the Chief Commissioner of Income Tax-1, Ahmedabad, Chief Commissioner of Income Tax, Rajkot, Chief Commissioner of Income Tax, Surat, Director General of Income Tax (Inv.) Ahmedabad for necessary action. Annexed hereto and marked as Annexure-R/18 is copy of the letter dated 21.03.2024 issued by the office of PCCIT, Gujarat.
3.21. It is submitted that as per information provided to the answering respondent from the office of PCCIT, Ahmedabad, pursuant to issuance of aforesaid letters dated 12.03.2024 and 21.03.2024, following facts emerged:
(I) Total Cases:
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Total no of cases in which information is uploaded by the Investigation wing is 512.
(II) CCIT, Rajkot Charge :
The information uploaded by Investigation wing in the present case includes 235 cases pertaining to CCIT, Rajkot, charge. Out of those 235 cases, no action is taken in 199 cases; the proceedings have been dropped on the basis of clarification letter dated 16.03.2024 of DGGI in 35 cases; and assessment was already re-opened prior to receipt of the said letter of DGGI dated 16.03.2024 in one case.
(III) CCIT-1 Ahmedabad Charge:
The information uploaded by the Investigation Wing in the present case include 13 cases of this charge. Out of those 13 cases, proceedings have been dropped in 3 cases; and the assessment Page 15 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined proceedings are concluded in remaining 10 cases.
(IV) CCIT Surat Charge:
The information uploaded by the Investigation Wing does not include any case pertaining to this charge. (V) Other Cases:
There may be the cases pertaining to the assessee/s located outside the State of Gujarat who are falling within the jurisdiction of other Principal Chief Commissioners of Income Tax, for which no data is available.
C. The details regarding steps taken on letter of assessee dated 10.03.2024 by the answering respondent (Deputy Director of Income Tax (Inv.)-1, Rajkot):
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined 3.22. The petitioner by its letter dated 10.03.2024 addressed to the Additional Director, DGGI, Zonal Unit, Ahmedabad (page 50) has requested for issuing the appropriate corrigendum to the report of DGGI. Copy of the said letter was also sent to the various Income Tax Authorities including the office of Principal Chief Commissioner, Income Tax, Ahmedabad, Chief Commissioner of Income Tax, Rajkot, Director General of Income Tax, Ahmedabad, office of the answering respondent, etc. 3.23. It is submitted that in the said letter dated 10.03.2024, the petitioner claimed that the name of the entity, M/s. Vasuki Global Industries Limited has erroneously been reported in place of M/s. Varuni International, Gandhidham (GSTIN: 24BFPP8457Q1ZJ). It Page 17 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined was stated by him that an inquiry was initiated against it by the DGGI-GRU, Gandhidham on the basis of the fake invoices issued by M/s.Varuni International, Gandhidham. It was also mentioned by him that during the course of inquiry of the DGGI-GRU, Gandhidham, the director of M/s. Varuni International appeared and it was informed that the entity M/s. Varuni International, Gandhidham was bogus/non-existent firm and had issued fake invoices and thereby passed on wrong ITC and therefore, the ITC was required to be reversed by all the entities to whom M/s. Varuni International had issued invoices. 3.24. It is submitted that the petitioner also mentioned in the said letter dated 10.03.2024 that the statement of director of the petitioner Page 18 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined company i.e. M/s. Vasuki Global Industries Limited was recorded, as it was one of the several purchasers of M/s. Varuni International. The petitioner had agreed to reverse the Input Tax Credit (ITC) relating to M/s Varuni International and pay the GST, interest and penalty thereon. The petitioner in its communication had also enclosed the copy of letter bearing No. F.No.DGGI/GRU/12(4)-
31/2020-21 dated 06.09.2021 sent in respect of closure of inquiry in the case of M/s. Vasuki Global Industries Ltd on payment of total tax, applicable interest and penalty as per the provisions of GST Act/Law. Hereto annexed and marked as Annexure-R/19 is the copy of letter of the petitioner dated 06.09.2021 of Deputy Director Gandhidham Regional Unit.
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined 3.25. It is further submitted that subsequently, an email was sent by the office of the answering respondent to the DGGI, Gandhidham on 23.04.2024 requesting to provide following documents:
The copies of all the important statements recorded relating to M/s. Vasuki Global Industries Limited during and after the search operation of DGGI Copy of show-cause notice issued to M/s. Vasuki Global Industries Limited/directors of the company Any other incriminating document/report related to the entity Annexed hereto and marked as Annexure- R/20 is the copy of the said email of Page 20 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined the office of answering respondent dated 23.04.2024.
3.26. In response to aforesaid email dated 23.04.2024, the DGGI, Gandhidham by email dated 06.05.2024 provided the copies of documents relating to M/s.
Vasuki Global Industries Limited during and after the search operation of DGGI, the details of which are as under:
Copy of statement of the Director of the Company Shri Bankim Mehta dated 02.02.2021, M/s. Vasuki Global Industries Limited. (copy of the same is enclosed for ready reference) Incident Report in the case of M/s. Vasuki Global Industries Limited (copy of the same is attached) dated 11.06.2021 Page 21 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Letter dated 06.09.2021 in respect of closure of enquiry in the case of M/s. Vasuki Global Industries Limited.
Letter dated 16.03.2024 in respect of clarification regarding case booked against M/s Vasuki Global Industries Limited, GSTIN- 24AAFCV6687A1Z9 (formerly known as Vasuki Tradelink Private Limited) Copy of the said email of the DGGI, Gandhidham dated 06.05.2024 is annexed hereto and marked as Annexure-R/21. 3.27. It is submitted that a reply from the office of DGGI, Gandhidham Regional Unit dated 06.05.2024 along with its enclosures (Annexure-R/21) has been uploaded on the Insight Portal of the Department pertaining to AY 2018-19, AY 2019-20 & AY 2020-21 on 04.02.2025 Page 22 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined for the perusal of Assessing officer and for taking necessary action as deemed fit.
3.28. It is further submitted that the reply from the office of DGGI, Gandhidham Regional Unit dated 06.05.2024 along with its enclosures (Annexure-R/21) has been sent via emails dated 05.02.2025 to Jurisdictional Assessing Officers, who have initiated reassessment proceedings for the beneficiaries of Vasuki Global Industries Ltd. following the report uploaded for the FY 2017-18 and FY 2019-20 by the office of Deputy Director of Income Tax (Inv.)-1, Rajkot on Insight Portal with a request to bring this subsequent information to the notice of Faceless Assessing Officers for the perusal and for taking necessary action as deemed fit. Annexed Page 23 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined hereto and marked as Annexure- R/22 is the copy of the emails to JAO dated 05.02.2025. Additionally, an email dated 06.02.2025 has been written to Addl. DIT(Systems)-2(3), Delhi for withdrawal of information in case of the beneficiaries of the petitioner from dissemination to Impending RMS cycle, a copy of this letter was also marked to Additional Director General (Systems), Delhi. Annexed hereto and marked as Annexure- R/23 is the copy of the said letter dated 06.02.2025 with attachments."
4.15. In view of the aforesaid affidavit, following order was passed by this Court on 11th February, 2025 :
"1. Learned Senior Standing Counsel Mr.Varun Patel has tendered the Page 24 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined affidavit-in-reply on behalf of the respondents, the same is ordered to be taken on record.
2. Learned Senior Standing Counsel Mr.Patel has referred to the affidavit- in-reply to justify the remedial action taken by the respondents for withdrawal of the reports generated on insight portal on the basis of the information received from the GST Department qua assessee and the entities which have transacted with the assessee for purchase and sale of the goods. It was submitted that as the assessee did not respond to the summons issued under Section 131(1A) of the Income Tax Act, 1961 in the year 2021-22 and partially complied the summons in December 2022, the Investigation Office of the Joint Director of Income Tax, Investigation, Rajkot generated the report on Insight Page 25 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Portal of the three assessment years which were getting time barred for initiation of the reassessment proceedings in case of the persons who have transacted with the petitioner.
3. On perusal of the report which was generated, it is shocking to find that the concerned Investigation Wing of the Income Tax Department after taking the data from the Form GSTR-1 without any investigation has come to the conclusion that, as the petitioner is not genuine, purchases made by the persons from the petitioner because of the bogus and fraudulent activities of the petitioner are also bogus and as such the entire amount of sale and purchase with the petitioner made by such persons, which are 512 in numbers have been treated as bogus purchase or bogus sales and addition was proposed Page 26 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined in the conclusion which reads as under :-
"As Vasuki Tradelink Private Limited is not a genuine entity, the sales of Vasuki Tradelink Private Limited is bogus which implies that the purchases by parties tabulated above are also not genuine. The purchase of the parties needs to be disallowed.
Conclusion:-
In Conclusion it is stated that Vasuki Tradelink Private Ltd. has provided fraudulent Input Tax Credit on fake invoices of ferrous waste and scrap, soya beans and coal which has been detected by DGGI, Ahmedabad Zonal unit on 03.02.2021"
4. In view of the above facts emerging from the affidavit-in-reply, learned Page 27 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Senior Standing Counsel Mr.Patel to provide the following details :-
(i) The data relating to the cases where the actions have been taken by the concerned Jurisdictional Assessing Officer based on the reports uploaded by the Investigating Wing of the Income Tax Department.
(ii) To provide the details of the cases similar to the present case where the reports have been uploaded on the basis of the information provided by the DGGI on the data obtained from the GST portal for the last three years.
(iii) To place on record the action taken pursuant to the reports uploaded by the Investigating Wing of the Income Tax Department and the Page 28 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined outcome of the remedial actions which are taken recently in the last week on 5th February, 2025.
(iv) It is also required to be explained by the respondents as to actions were taken from March, 2024 when the letter dated 16.03.2024 (Page No. 293) was received till the notice was issued by this Court on 19.09.2024 and actions taken after receipt of the notice till 5th February, 2025.
5. Learned Senior Standing Counsel Mr.Varun Patel prays for time to place above information on record before the next date of hearing.
6. Learned Senior Advocate Mr.S.N.Soparkar also prays for time to file rejoinder to the affidavit-in-
reply filed on behalf of the Page 29 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined respondents.
Stand over to 8th April, 2025."
4.16. In compliance of the aforesaid order, additional affidavit-in-reply was tendered on 8th April, 2025 on behalf of the respondent- Authority giving the following details :
"2. It is submitted that the point-wise reply to the directions of this Hon'ble Court in paragraph nos.4(i) to (iv) of the said order dated 11.02.2025 is as under:-
A. Para 4 (i) of the order dated 11.02.2025: The data relating to the cases where the actions have been taken by the concerned Jurisdictional Assessing Officer based on the reports uploaded by the Investigating Wing of the Income Tax Department.
Reply:
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined It is submitted that the statement containing data relating to the cases wherein the actions have been taken by the concerned Jurisdictional Assessing Officers (JAO) by issuing notice u/s.148 of the Income Tax Act, 1961 based on the reports uploaded by the Investigation Wing in the present case are as under:-
Total No No of cases Total No of cases of cases Reopened s No of cases Reopened by the Uploaded olely based on Reopened based on JAO based on on Insight the report other information, reports uploaded Portal uploaded by the in addition to the by the S.N. FY Investigation report uploaded by Investigation Wing, Rajkot the Investigation Wing Wing (C) (A) (B) (D) = (B) + (C) 1 2017-18 278 06 12 18 2 2018-19 592 03 06 09 3 2019-20 194 42 14 56 Total 1064 51 32 83 B. Para 4 (ii) of the order dated 11.02.2025:
To provide the details of the cases similar to the present case where the reports have been uploaded on the basis of the information provided by the DGGI on the data obtained from the GST portal for Page 31 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined the last three years.
Reply:
It is submitted that there are 285 number of cases pertaining to Director General of Income Tax (Inv.), Ahmedabad wherein the reports have been uploaded on the basis of the information provided by Director General of Goods & Service Tax Intelligence (DGGI) for the last three financial years. The list of such cases showing details of such cases wherein the reports like present case which has been uploaded on the basis of the information provided by DGGI is annexed hereto and marked as Annexure R/1.
C. Para 4 (iii) of the order dated 11.02.2025:
To place on record the action taken pursuant to the reports uploaded by the Investigating Wing of the Income Tax Department and the outcome of the remedial actions which are taken recently in the last week on 5th February, 2025.
Reply:
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Details of actions taken pursuant to the reports uploaded by the Investigation Wing: It is submitted that there are 133 cases of F.Ys. 2017- 18, 2018-19, 2019-20, wherein actions u/s.148 and 148A have been initiated pursuant to the reports uploaded by Investigation Wing, Rajkot. Out of those 133 cases, as stated hereinabove in para no.2A, there are total 83 cases, wherein the reassessment proceedings after issuing notice under section 148 have been initiated. Further, there were other 50 cases wherein proceedings under Section 148A had been initiated pursuant to the reports of Investigation Wing, Rajkot. After receipt of clarificatory communication from DGGI dated 16.03.2024, the proceedings u/s.148A in those 50 cases have been dropped, details of which are as under:-
Total Cases SN FY 2017-18 FY 2018-19 FY 2019-20 dropped 1 07 0 43 50 Page 33 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined List of cases dropped is annexed hereto and marked as Annexure R/2.
It is submitted that the Investigating Wing, Rajkot has taken remedial actions on 05.02.2025 and after
05.02.2025, the details of which are as under: -
A. Correspondence with Systems
1.A letter dated 05.02.2025 was sent to the Joint/Addl. DIT (Systems)-2(3), Ghaziabad requesting the withdrawal of information related to the assessee and its beneficiaries for FY 2018-19 from the upcoming Risk Management Strategy (RMS) Cycle, as the cases pertaining to FY 2018-19 were about to be picked up for Re-opening.
2.Pursuant to the advice of the Directorate of Systems, the Investigation Wing, Rajkot, inactivated the information on 12.02.2025 and 14.02.2025 on the Insight Portal pertaining to FY 2018-19 and FY 2019-
20 for cases that had not yet been selected for the Risk Management Strategy (RMS) cycle, in order to Page 34 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined ensure that such information was excluded from the RMS cycle.
B. Sharing of Information with Jurisdictional Assessing Officers (JAOs) & Faceless Assessing Officers (FAOs) of Beneficiaries I. Additional information received from DGGI, Gandhidham Regional Unit was uploaded on 05.02.2025 on the Insight Portal in order to be visible to FAOs, so that they could take an informed decision.
II. E-Mails were sent to all concerned JAOs of Beneficiaries (FY 2017-18 & FY 2019-20) on 05.02.2025, informing them of the additional information received from DGGI, GRU, and highlighting the need to ensure that this information is uploaded on the appropriate ITBA module order to be visible to FAOs, so that they could take an informed decision. Later, Reminder E-Mails were also sent to JAOs on 01.03.2025 in this regard. III. At the advice of National Faceless Assessment Page 35 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Centre (NaFAC), the Investigation Wing Rajkot, uploaded additional information received from DGGI- GRU, directly through the faceless enquiry module of the ITBA for the pending assessment proceedings on 24.02.2025, 03.03.2025 & 23.03.2025. V. The PDIT(Inv.), Ahmedabad vide E-Mail dated 05.03.2025 shared the additional information from DGGI to Pr.CCIT, NaFAC, so that the same can be shared with FAOs.
Outcome of remedial action taken on 05.02.2025:-
It is further submitted that the details of outcome of the remedial actions which were taken on 05.02.2025 and thereafter, are as under:
1) In all 83 cases were reopened based on the report uploaded by DDIT(Inv.)-1, Rajkot. Out of 83 Cases, 51 cases were reopened solely on the basis of reports uploaded by DDIT(Inv.)-1, Rajkot. Remaining 32 cases were reopened based upon the report uploaded by the Investigation Unit Rajkot, as well as, based on Page 36 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined other information.
2) Out of 83 Cases, total 23 Assessment orders were passed before 05.02.2025. Out of the 23 cases, no additions were made in 16 Cases.
3) Out of 83 Cases, total 32 Assessment orders were passed after 05.02.2025. Out of those 32 cases, no additions were made during the assessment proceeding in 28 Cases.
4) In remaining 28 cases, the assessment orders are yet to be passed. Here, it is worth mentioning that in all these 28 cases, the additional information received from DGGI has already been communicated, so that, FAOs can take informed decision.
D. Para 4 (iv) of the order dated 11.02.2025:
It is also required to be explained by the respondents as to actions were taken from March, 2024 when the letter dated 16.03.2024 (Page No. 293) was received till the notice was issued by this Court on 19.09.2024 and actions taken after receipt of the notice till 5th February, 2025. Page 37 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025
NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Reply:
Steps taken by the office of Principal Chief Commissioner of Income tax (Pr. CCIT) - Gujarat, Ahmedabad from March 2024 when the letter dated 16.03.2024 (clarification letter issued by DGGI) was received till the notice was issued by the Honorable court on 19.09.2024 and actions taken after receipt of notice till 5th Feb 2025 It is submitted that after the receipt of petitioner's letter dated 10.03.2024, on 12.03.2024, letter was written to Chief Commissioner of Income tax (CCIT)-
Rajkot (in whose jurisdiction maximum cases affected by the information fall) and the Director General of income tax (Investigation), Ahmedabad, from whose office the information was uploaded. Subsequently, on 21.03.2024, clarificatory letter of DGGI (dated 16.03.2024) was also forwarded to Chief Commissioners of Income tax and DGIT(Inv.) in the state of Gujarat.
Thereafter remedial actions were taken by Page 38 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined DDIT(Inv.)-1, Rajkot as mentioned below. Remedial action taken by the DDIT(Inv.)-1, Rajkot from 16.03.2024 to till the issuance of a notice by this Hon'ble Court on 19.09.2024:
The DDIT(Inv.)-1, Rajkot received communications from various assessing officers seeking further information and documents in connection with the reports uploaded. The office of DDIT(Inv.)-1, Rajkot received communication from the JAO of below mentioned assessees:
SN PAN Name
1 AAECJ0339G JAYRAJ FUEL PRIVATE LIMITED
2 AALFS3892F MILLION CERAMIC
3 AASCS9787K SAKTHI ENERGY PRIVATE LIMITED
4 AAIFC6305Q CRYSTAL COAL
5 ACJFS6149M SHYAM COAL CORPORATION
6 ACRFS7992L SATYAM COAL CORPORATION
7 AANFB0337J BLACK FIRE COAL COMPANY
KONKAN AGRO MARINE
8 AAACK7538G
INDUSTRIES PRIVATE LIMITED
9 AAECD5633K DELTA GLOBAL PRIVATE LIMITED
10 AAEFT7866M TRISHUL LOGISTICS
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NEUTRAL CITATION
C/SCA/13472/2024 ORDER DATED: 15/10/2025
undefined
AGARMIN COALWASHERY
11 AAFCA3572R
PRIVATE LIMITED
12 AAFCR0852B REPCO IMPEX PRIVATE LIMITED
13 AAGCV1903N VNU COAL PRIVATE LIMITED
14 AAJFV2876L VASUNDHRA ENTERPRISES
15 AAKFD6903D DECENT ENTERPRISE
ACULIFE HEALTHCARE PRIVATE
16 AAMCA8542Q
LIMITED
17 AAMFD1874F DIYAN PAPERS LLP
18 AANFC3699L CLAYART MINERAL
19 AANFD2825M DHARTI CORPORATION
20 AAPFN1543C NEXUS CORPORATION
21 AAPFR0076G RADHE KRISHNA CERA CLAY
22 AASFR7675N RATAN WORLDLINK LLP
23 AATFB4366R BHAGYA LAXMI COAL LLP
24 AATFG4186E GURUKRUPA TRADING
25 ABMFM2748L MARQUINA COAL
26 ACDPG4081G ANURAG GOEL
27 ADIFS2580E SHIV CORPORATION
28 ADOFS4585K SHREE ANJANI ENTERPRISE
29 ADQFS2789B SKB BLACKROCK LLP
30 ADRPC9514B SUBHAS CHANDER
31 ADWFS5781P SHIVAAY COAL CORPORATION
32 AEGPD8661N DIBYENDU DEY
33 AFFPG6871D NEHA RAJKUMAR GUPTA
34 AFSPJ5115N SANJAY KUMAR JAIN
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NEUTRAL CITATION
C/SCA/13472/2024 ORDER DATED: 15/10/2025
undefined
35 AIBPB8494J DIPEN BUJAD
36 ALRPM7930R KALPESH MAVJIBHAI MORDIYA
37 AMCPS6173L DHARAM PAL SHARMA
38 AQLPS3213J VIJAYKUMAR HARISHBHAI SONI
39 AVCPS3184L MANAV SHEKHER
40 BVLPM7644B ROBIN SINGH MAAN
41 AALFP5778M PARKER IMPEX
42 ABIFA4124A AKSHAR BLACKROCK LLP
43 ACPFS4024B SHREE SAI CORPORATION
BLACK DIAMOND TRADELINK
44 AADCB7271J
PRIVATE LIMITED
45 AAKFV9568N VISHVAJIT COAL
46 AANFB0337J BLACK FIRE COAL COMPANY
47 AAOFP0794J PURUSOTAM EXPORT AND IMPORT
48 ABLPC5749C MAHAVIR SINGH CHHILLAR
49 ADMFS9182L SHIV ENTERPRISE
50 AGFPV5263P DILIP BAJUBHAI VALERA
The responses by the office of DDIT(Inv.)-1, Rajkot to these communications is annexed hereto and marked as Annexure R/3.
It is respectfully submitted that based upon the abovementioned communication, total 50 cases of section 148A proceedings were dropped by the JAOs.
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NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined Remedial Action taken by the Investigation Unit, Rajkot from the receipt of notice issued by this Hon'ble Court by order dated 19.09.2024 till 05.02.2025:
During the relevant period, extensive transfers and postings were effected, resulting in a reorganization of the administrative hierarchy across multiple levels, including the offices of the Principal Chief Commissioner of Income Tax (Pr. CCIT), Gujarat; Director General of Income Tax (Investigation), Ahmedabad; Principal Director of Income Tax (Investigation), Ahmedabad; Joint Director of Income Tax (Investigation), Rajkot Unit; and Deputy Director of Income Tax (Investigation)-1, Rajkot. Notwithstanding the administrative transitions, the Investigation Wing, Rajkot, continued to duly apprise the senior authorities of the material facts, and deliberations were undertaken at regular intervals with a view to identify appropriate remedial measures. In order to finalize the course of remedial action and accord the requisite administrative and Page 42 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined legal sanction for implementation of the same, a meeting was convened by the Learned Principal Chief Commissioner of Income Tax, Gujarat, on 04.02.2025, wherein necessary directions were issued to the officers concerned for the execution of such remedial measures. Pursuant thereto, on 05.02.2025, the officers implemented a result-
oriented remedial action, the outcome of which is elaborated upon in forgoing paragraphs. Nevertheless, in the meantime the DDIT(Inv.)-1, Rajkot received communications from various Faceless Assessing Officers requesting additional information and documents relating to assessment proceedings u/s.147 r.w.s.144B. These requests were addressed and complied with. Correspondence was received for the following assessee from the Faceless Assessing Officers:
Date of Assessment SN PAN Name Date of Reply Remarks Order 1 AFZPM5997A KIRAN MODI 03-02-2025 14/02/2025 No Addition Made 2 ABFFS1268N SHUBHAM 03-02-2025 07/03/2025 No Addition Made Page 43 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined MINCHEM PRIVATE LIMITED 3 ALGPG5976Q SACHIN GOYAL 03-02-2025 17/03/2025 No Addition Made 4 AAMFK0760D K M TRADERS 03-02-2025 25/03/2025 No Addition Made It is submitted that in all the above four cases, the assessment order has been passed without making any addition based upon the investigation report.
Assessment orders passed by the Assessing officer in above cases is annexed hereto and marked as Annexure R/4."
4.17. It appears that thereafter, further affidavit-in-reply was filed on 15.04.2025 by the respondents regarding reopening of the cases which were brought to notice by the petitioner explaining the prompt actions which were being taken by the respondent- Authorities. The petitioner filed the affidavit-in-rejoinder affirmed on 14th April, 2024 bringing on record continuation of the Page 44 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined proceedings on the basis of the information relating to the petitioner in case of the various assesses. The respondent, thereafter, filed three further affidavit-in-replies affirmed on 4th May, 2025, 5th July, 2025 and 27th July, 2025 placing on record the corrective actions which were taken by the respondents in relation to the grievance raised by the petitioner during the hearing conducted before this Court.
5. Considering the above facts to the effect that the respondents have taken the corrective steps during the pendency of this petition, we are having a ray of hope that in future, no such action will be taken by the respondent- Authorities on the basis of the information Page 45 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined made available on the Insight Portal without verification by the Jurisdictional Assessing Officer by considering such information as the correct information. The Scheme of the Act is well designed to take care of the information which is available on the Insight Portal by providing a mechanism in Section 148A of the Act by issuing notice to the assessed by the Jurisdictional Assessing Officer to verify the information as per clause (a) to Section 148A of the Act as was existent prior to 1st September, 2024 and thereafter, as per Sub- section (1) of Section 148A of the Act, which reads as under now :
"148A.(1) Where the Assessing Officer has information which suggests that income chargeable to tax has escaped Page 46 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined assessment in the case of an assessee for the relevant assessment year, he shall, before issuing any notice under section 148 provide an opportunity of being heard to such assessee by serving upon him a notice to show cause as to why a notice under section 148 should not be issued in his case and such notice to show cause shall be accompanied by the information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year."
6. Section 148A(a) of the Act, as it existed up to 1st September, 2024 reads as under :
"148A. The Assessing Officer shall, before issuing any notice u/s 148, --
(a) conduct any enquiry, if required, with the prior approval of specified Page 47 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment."
7. It appears that the conducting of inquiry, if required, with prior approval of the specified authority with respect to the information which suggest that the income chargeable to tax has escaped the assessment, has been done away after the amendment of Section 148A of the Act with effect from 1st September, 2024. Section 148A(1) therefore is now similar to Section 148A(b) of the Act which was applicable up to 1st September, 2024, which reads as under :
"148A(b)-provide an opportunity of being heard to the assessee, by serving upon Page 48 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a)."
8. However, we are of the opinion that before issuance of the notice under Section 148A(1) of the Act, it is the responsibility and liability of the Jurisdictional Assessing Officer to verify the information made Page 49 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025 NEUTRAL CITATION C/SCA/13472/2024 ORDER DATED: 15/10/2025 undefined available on the Insight Portal which suggests that the income chargeable to tax has escaped assessment in case of the assessee for the relevant Assessment Year and if necessary, the Assessing Officer must conduct inquiry with prior approval of the specified authority with respect to such information and only after verification of the information made available to the Assessing Officer, the provisions of Section 148A(1) of the Act shall be invoked.
9. In view of the foregoing reasons, the petition is disposed of. Notice is discharged.
(BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) PALAK Page 50 of 50 Uploaded by PALAK BRAHMBHATT(HC01391) on Thu Oct 16 2025 Downloaded on : Fri Oct 17 01:23:25 IST 2025