Parag Rameshbhai Gathani Vs ITO (Gujarat High Court)
The Gujarat High Court addressed writ petitions challenging notices issued under Section 153C of the Income Tax Act, 1961 (“the Act”) for Assessment Year 2017–18. The petitioner, through the present petition under Article 226 of the Constitution, sought to quash the notice dated 09.02.2024 issued by the Assessing Officer (AO) under Section 153C, calling upon him to furnish a return of income. The notice was based on satisfaction notes recorded by the AO of the petitioner on 14.07.2023 and the AO of the searched person, Suresh R. Thakkar, on 06.06.2023. The proceedings under Section 153C were invoked on the allegation that the petitioner made an “on-money” payment for a property purchase.
The factual background reveals that a search under Section 132 of the Act was conducted on 15.10.2019 in the case of a land broker and financier group, which included premises of Suresh R. Thakkar. Seized material included WhatsApp chat images showing financial transactions involving Dharmesh Gathani, Parag Gathani, Rushisinh Thakor, and Randhirsinh Thakor. Statements recorded under Section 131 of the Act confirmed these communications regarding a land deal, and a registered sale deed later showed that the land was purchased by Bharti Dharmesh Gathani for Rs. 3.8 crore on 24.07.2020.
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