Veena Arora Vs CIT (Delhi High Court)
The Delhi High Court dismissed a writ petition challenging a reassessment notice issued under section 148 of the Income Tax Act, holding that the post-1 April 2021 reassessment regime is information-based and no longer requires the traditional recording of a strict “reason to believe.” The notice was founded on an excel sheet recovered during a search at a real estate group indicating an alleged cash transaction in the assessee’s name, along with the admitted fact that the assessee had purchased a flat from the same group. The Court ruled that, at the notice stage, the Assessing Officer only needs material that prima facie suggests escapement of income. It emphasized that writ jurisdiction cannot be used to test the adequacy, sufficiency, or correctness of such material. The assessee’s remedy lies in contesting the nexus and factual accuracy during reassessment proceedings. Accordingly, the notice was held valid and within jurisdiction.
Facts of the Case
1. The Assessing Officer issued a notice dated 28 March 2025 under section 148 of the Income Tax Act proposing reassessment of the petitioner.
2. The basis of the notice was an excel sheet recovered during search at the premises of Bhutani Infra Group and Associates, which allegedly reflected a cash transaction of Rs 7,97,991 in the name of the petitioner.
