Love Dharminkumar Patel Vs ITO (Gujarat High Court)
The Gujarat High Court, in the case concerning a challenge to reassessment proceedings, examined the validity of notices issued under Sections 148 and 142(1) of the Income Tax Act, 1961. The petitioner had filed a return of income for Assessment Year 2020–21. Subsequently, a search and seizure operation was conducted on certain real estate groups, during which materials were recovered suggesting alleged cash transactions in property dealings around Ahmedabad. Based on this material, including a statement recorded under Section 131 and a loose paper allegedly indicating land transaction details, the revenue authorities initiated reassessment proceedings against the petitioner.
The petitioner objected to the reopening of the assessment, contending that the seized material had no connection with his transaction. He emphasized that his land purchase, dated 27.05.2019, was carried out entirely through banking channels, with no involvement of cash. The petitioner also highlighted that the loose paper relied upon by the revenue was dated 23.02.2017, predating his transaction by nearly two years, and contained no identifiable link to him. Further, he denied any association with the entities involved in the search proceedings and asserted that the revenue had relied on incorrect and irrelevant facts.
