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

ITA 762/RPR/2025Status: HeardITAT Panaji06 October 2026AY 2012-201327 pages
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What did the Tribunal hold?

The Tribunal held that the reassessment proceedings initiated under Section 147 were bad in law. The Tribunal noted that the original assessment for AY 2012-13 was a scrutiny assessment completed on 31.03.2015. The reassessment was initiated after four years, and the AO failed to demonstrate any failure on the part of the assessee to disclose fully and truly all material facts. The Tribunal found that the Income Tax Department had completed reassessment proceedings in the cases of the share applicant companies, Debdaru Vinmay Pvt. Ltd. and DKS Tradecom Pvt. Ltd., for AY 2012-13, accepting their returned income after investigations based on information from ADIT (Inv.), Raipur. This indicated that the identity, creditworthiness, and genuineness of the transactions with these companies had been verified by the department. Therefore, it was incorrect for the AO to allege that the assessee failed to prove these aspects. The Tribunal concluded that the assessee had fulfilled its onus by filing the necessary documents, and the AO had not pointed out any defects. Consequently, the addition made by the AO under Section 68 was without merit. The Tribunal directed the AO to delete the addition. As the notice under Section 148 was held to be bad in law, other legal grounds raised by the assessee were not adjudicated.

What were the facts?

The assessee, Nandan Steels And Power Limited, is in appeal against the order of the Ld. CIT(A) for Assessment Year 2012-13. The Ld. CIT(A) had confirmed the initiation of reassessment proceedings under Section 147 of the Income Tax Act, 1961, and the addition of Rs. 11,18,00,000/- received as share application money from group companies, treating it as unexplained cash credit under Section 68. The original assessment for AY 2012-13 was completed on 31.03.2015. The reassessment proceedings were initiated by issuing a notice under Section 148 on 30.03.2019, after more than four years from the end of the relevant assessment year. The assessee contended that the reassessment was based on a change of opinion and without proper application of mind by the Assessing Officer (AO), and that the proceedings were barred by limitation.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147 of the Income Tax Act, 1961, for AY 2012-13 are bad in law and liable to be quashed? - Assessee's contention: The reassessment proceedings are vitiated by a mere change of opinion and non-application of mind by the AO, as the original assessment was a scrutiny assessment where relevant facts were examined. The AO failed to consider the prior completed assessment and formed belief mechanically. The proceedings were initiated after four years without fulfilling the conditions of the first proviso to Section 147, making them void ab initio. The AO also relied on borrowed satisfaction from DDIT (Inv.) without independent application of mind. - Revenue's contention: Not recorded in the judgment. 2. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 11,18,00,000/- received as share application money from group companies as unexplained cash credit under Section 68 of the Income Tax Act, 1961? - Assessee's contention: The assessee discharged its onus by providing MOA, Articles of Association, ROC certificates, IT returns, audited financials, bank statements, and board resolutions for the group companies. The AO failed to point out any defects in these documents. Furthermore, the Income Tax Department itself had completed reassessment proceedings for the AY 2012-13 in the cases of the share applicant companies, Debdaru Vinmay Pvt. Ltd. and DKS Tradecom Pvt. Ltd., accepting their returned income, thereby verifying the identity, creditworthiness, and genuineness of the transactions. - Revenue's contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 148,Section 68,Section 250,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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