Alleged Over invoicing of coal imports through related parties under customs regulations - expense disallowance via reopening

Facts:

Assessee was incharge of thermal power generation for Maharashtra Govt. whose job was to import coal, generate power to MERC. Under customs regulations it was alleged that the assessee had over invoiced coal imports from Indonesia which was duty free (subject to documentation) by layering it through offshore related parties. The customs order was appealed and was quashed with revenue intelligence authorities dropping the same beyond High Court in favour of the assessee. Parallelly, income tax department reopened the case of the assessee and sustained disallowances of the over invoiced coal amount. On higher appeal the same was dropped. Angered/aggrieved revenue went in higher appeal -

Held in favour of the assessee that the original Cestat order of alleged over invoicing itself was upheld in favour of the assessee, thus the addition was uncalled for. 

Ed. Note: Case pertains to Reliance - ADAG. It is generally said that good governance self manifests. It is factual that the ADAG group was declared bankrupt with bailouts required from the other parent Reliance group. 

Case: DCIT v. Reliance Infrastructure Ltd. 2024 TaxPub(DT) 632 (Mum-Trib)