Parasram Commodities Private Limited Vs DCIT (ITAT Delhi)
The appeal before the tribunal arose from a reassessment order passed under Sections 143(3) read with 147 of the Income Tax Act for Assessment Year 2012–13. The assessee had originally filed its return declaring total income of ₹3,78,75,070, and the assessment was completed under Section 143(3). Subsequently, the case was reopened based on information received from the Investigation Wing indicating that the assessee had advanced ₹1 crore to an individual in connection with the latter’s purchase of immovable property.
During reassessment proceedings, however, the Assessing Officer did not make any addition on the issue forming the basis of reopening, i.e., the alleged advance of ₹1 crore. Instead, the Assessing Officer made an addition of ₹66,77,951 under Section 68 by treating certain share transactions as accommodation entries and rejecting the claim of long-term capital gains on listed shares. Consequently, the total income was reassessed at ₹4,45,53,021.
The assessee challenged the reassessment before the appellate authority, which dismissed the appeal due to non-appearance. The matter was then brought before the tribunal. The assessee contended that the reassessment was invalid as no addition had been made on the specific issue for which the case was reopened. It was argued that the addition made on unrelated grounds was beyond the scope of the recorded reasons for reopening.
