Vivaansh Edutech Pvt. Ltd. Vs ACIT (Gujarat High Court)
The writ petition before the Gujarat High Court challenged the legality of a notice issued under Section 148 of the Income-tax Act, 1961, and the consequential order passed under Section 148A(3), both dated 19 June 2025, seeking to reopen the petitioner’s assessment for Assessment Year 2021–22. The petitioner contended that the reopening was without jurisdiction, contrary to the amended statutory scheme, and unsupported by any material demonstrating escapement of income.
The petitioner, a company incorporated under the Companies Act, 2013, had been issued a show cause notice under Section 148A(1) on 31 March 2025. The petitioner submitted a detailed reply on 17 April 2025. Despite this, the respondent passed an order under Section 148A(3) on 19 June 2025, concluding that income amounting to ₹12,16,51,000 had escaped assessment and, on that basis, issued a notice under Section 148 on the same date.
On behalf of the petitioner, it was argued that under the post-1 April 2021 regime, the jurisdiction to reopen an assessment is conditioned upon the actual escapement of income chargeable to tax. Unlike the earlier law, which required only a “reason to believe,” the amended provisions mandate the existence of real escapement. It was contended that this foundational requirement was absent in the present case. The reopening was said to be based solely on allegations of “circuitous” transactions with related parties, without any supporting evidence of income escaping assessment.
