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2024 (2) TMI 276 - AT - Income TaxValidity of Reopening of assessment - disallowance of expenditure being the inflated cost of fuels - information from the Directorate of Revenue Intelligence (DRI) relied upon - Assessee has purchased coal from Indonesia originally, which was purchased by intermediary at an inflated rate than the actual value of coal rate - AO considering enquiry report conducted by the DRI, observed that from report it appears that the intermediaries‟ firms were merely invoicing agents for facilitating invoice inflation. - CIT(A) deleted the additions relying upon the decision of CESTAT in customs valuation case. HELD THAT:- The show cause notice of DRI based on the investigation carried out by it, which is the foundation for reopening of the case u/s 147 of the Act and making the addition by the AO, has already been set aside by the Principal Commissioner of Customs (Adjudication) vide his order by holding “that the show cause has not come out with any separate reasons and evidences that the extent of over-valuation alleged in the show cause notice in respect of RNRL & other intermediaries are more or less same, suggestive of the fact that the relationship per se has not affected the transaction value”. Hence considering the peculiar facts and circumstances in totality, in our considered view, the determination made by the AO in any case is un- sustainable being sans foundation/substantive material and thus the impugned order is affirmed and the appeal filed by the Revenue Department is dismissed.
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