NANDAN STEELS AND POWER LIMITED, RAIPUR,RAIPUR vs. CENTRAL CIRCLE-1, RAIPUR

ITA 762/RPR/2025Status: HeardITAT Raipur06 October 2026AY 2012-201327 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were initiated on the basis of information received from the ADIT (Inv.), Raipur, and that the Income Tax Department had already completed scrutiny assessments in the cases of the group companies, Debdaru Vinmay Pvt. Ltd. and DKS Tradecom Pvt. Ltd., accepting their returned income for AY 2012-13. The Tribunal noted that the Assessing Officer had not pointed out any defects in the documents submitted by the assessee (MoA, Articles of Association, ROC certificate, IT returns, financials, bank statements, board resolutions) for these group companies. Since the identity, creditworthiness, and genuineness of the transactions with these group companies were verified by the Income Tax Department in the assessments of those companies, it was incorrect for the Assessing Officer to allege that the assessee failed to prove these aspects. Therefore, the addition made by the AO under Section 68 of the Act was found to have no merit. The Tribunal directed the AO to delete the addition. Consequently, Ground No. 3 raised by the assessee was allowed. As the notice under Section 148 was held to be bad in law, other legal grounds raised by the assessee were dismissed as un-adjudicated.

What were the facts?

The assessee, Nandan Steels And Power Limited, is in appeal against the order of the Learned Commissioner of Income Tax (Appeals) for Assessment Year 2012-13. The appeal arises from an assessment order passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961. The primary dispute concerns the confirmation of a share application money receipt of Rs. 11,18,00,000/- from group companies, which was treated as unexplained cash credit under Section 68 of the Act. The original assessment was completed on 31.03.2015. Reassessment proceedings were initiated via a notice under Section 148 dated 30.03.2019, after a period of four years from the end of the assessment year.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147 of the Income Tax Act, 1961, are bad in law and liable to be quashed due to a mere change of opinion and non-application of mind by the Assessing Officer, given that the assessee's case had already undergone scrutiny assessment. (Mixed law and fact) 2. Whether the reassessment proceedings initiated after the expiry of four years from the end of the relevant assessment year are barred by limitation, as the mandatory precondition of recording satisfaction about the assessee's failure to disclose fully and truly material facts, as per the first proviso to Section 147, was not fulfilled. (Mixed law and fact) 3. Whether the reassessment proceedings are illegal and void ab initio as they were initiated based on borrowed satisfaction derived from information received from the DDIT (Inv.)-1 Raipur without independent application of mind by the Assessing Officer. (Mixed law and fact) Assessee's contentions: The assessee argued that the original assessment was a comprehensive scrutiny assessment where all relevant facts were examined. The reasons for reopening did not point out any fault by the assessee and failed to acknowledge the prior completed assessment, indicating a mechanical formation of belief and non-application of mind. The reopening, being after four years, was barred by limitation as the conditions under the first proviso to Section 147 were not met. The satisfaction for reopening was borrowed and not independently formed. Revenue's contentions: The judgment does not record specific contentions from the revenue regarding these grounds.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 68,Section 148,Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Veekaas S Sharma, CA
For Respondent: Shri Rituparna Namdeo, CIT-DR

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), Raipur-3 [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2012-13 on 07.10.2025, emanating from the Assessment Order u/s 143(3) r.w.s. 147 of the Act, dated 30.12.2019. 2. The assessee has raised the following grounds of appeal :

“1. The order of the Learned Commissioner of Income Tax, Appeal, Raipur-3 is bad in law and facts.

2.

The Learned Commissioner of Income Tax, Appeal, Raipur-3 has erred in confirming initiating of proceeding u/s 147 of the Income Tax Act, 1961. 3. The Learned Commissioner of Income Tax,

The order continues below.

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