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Tax Publishers
Additions under section 68 via reopening on high
seas sale made
Facts:
Arising out of information flowing from the Financial
Intelligence Unit (FIU) certain transactions of the assessee with two parties
that were shared with the AO; the case of the assessee was reopened and
additions were made under section 68 of the said transaction values. CIT(A)
sustained the additions. On appeal assessee manifested that these were high
seas sales made which were reported by them in their turnover and in the
other transaction they in fact have reported the same and made a profit as well
on the same as well which has been offered to tax. Thus the AO had
reopened the case without application of mind or establishing any evasion on
his own. On higher appeal -
Held in favour of the assessee that the reassessment was
bad and deserved to be quashed.
Ed. Note: Sustaining
high seas sale as additions under section 68 would mean a double taxation of
the same once by way of reported turnover and then by way of addition under
section 68.
Case: H.S. Impex
(P) Ltd. v. DCIT 2024 TaxPub(DT) 794 (Del-Trib)
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