Scarlet Tradelink Private Limited Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal, Ahmedabad Bench, heard the assessee’s appeal against the order dated 27.02.2025 passed by the National Faceless Appeal Centre (NFAC), which had upheld the assessment order dated 26.05.2023 passed under Sections 147 read with 143(3) of the Income-tax Act, 1961 for Assessment Year 2016-17.
The assessee had challenged the reassessment proceedings on several grounds, including inadequate opportunity of hearing before completion of assessment, validity of the order under Section 148A(d), validity of the approval for reopening, and the addition of ₹1,78,13,924 made by estimating business income at 0.5% of sales made to M/s Orange Tradex Pvt. Ltd. and M/s Krrish Enterprises. By way of an additional ground, the assessee also contended that the reassessment proceedings were barred by limitation in view of the Supreme Court decisions in Union of India v. Ashish Agarwal and Union of India v. Rajeev Bansal.
At the hearing, the assessee primarily challenged the validity of the reassessment on the ground that the assessment order dated 26.05.2023 was time-barred. It was submitted that the additional ground involved only legal issues arising from material already on record and could therefore be admitted by the Tribunal.
