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)