Vivek Jalan
Quick Summary
The Income Tax Department and the GST Department share information on the basis of which the other department acts. However, this act should not be done in haste but on one's own inquiry. A hasty action on the GST Department's information has caused some embarrassment for the Income Tax Dept. in the
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FAQ :
No, the Gujarat High Court has ruled that the Income Tax Department cannot issue notices under Section 148A solely on information provided by the GST Department. They must conduct their own inquiry and verification.
The Income Tax Department issued notices to buyers and sellers based on information from the GST Department alleging invoice fraud. However, the GST information was incorrect, and the notices had to be withdrawn, causing business disruption for the petitioner.
Before issuing a notice under Section 148A(1), the Jurisdictional Assessing Officer must verify the information suggesting escaped income and conduct an inquiry if necessary, with prior approval from the specified authority.
Yes, the Bombay High Court ruled that an Assessing Officer cannot make additions solely based on general information from the Sales Tax Department without proof of bogus transactions, and must consider documents provided by the assessee.
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