R S Ispat Limited vs. DCIT, Circle 12(1), Kolkata

Parties Involved

Facts Summary

The assessee, R S Ispat Limited, filed its return of income for AY 2012-13 on 26.09.2012, which was later revised on 08.08.2013. The case was selected for scrutiny and the assessment was completed with a disallowance of certain purchases. The assessee's appeal against this assessment was pending. Subsequently, the case was reopened by the AO based on information from the Commercial Tax Officer regarding fake purchases. The reassessment order disallowed the same purchases again and added an unexplained cash credit. The assessee challenged this reassessment, pointing out that the purchases had already been disallowed in the original assessment, leading to a double addition. The AO rectified this by deleting the addition. The Commercial Tax authorities had also quashed the initial report and accepted the genuineness of the purchases.…

Legal Issues

• 1. Validity of the reopening of assessment under section 147 of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

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