Deep Vijaykumar Trivedi Vs DCIT (Gujarat High Court)
The Gujarat High Court allowed a writ petition challenging notices issued under Sections 148A(1) and 148 of the Income Tax Act, 1961, along with the order passed under Section 148A(3) for Assessment Year 2019-20. The reopening proceedings alleged escapement of income amounting to Rs. 1.17 crore in connection with a disputed land transaction. The petitioner and his family had originally purchased two parcels of land in 2013, which subsequently became subject matter of revenue litigation and civil disputes. During the pendency of such disputes, the land was ultimately sold by the petitioner in 2019 for Rs. 80 lakh, after which the petitioner filed his income tax return. Later, during a survey under Section 133A conducted in the case of Crown Decor Pvt. Ltd., authorities recovered digital data from a mobile phone belonging to an employee of Olympic Decor LLP. The data allegedly contained a draft complaint and handwritten image referring to cash transactions relating to settlement of the land dispute.
Based on this material, the department issued a notice under Section 148A(1), alleging that the petitioner had made cash payments of Rs. 4.68 crore for settlement of the land dispute through intermediaries. The petitioner objected to the reopening proceedings, contending that the allegations were based merely on assumptions, conjectures, and statements of persons unrelated to him. It was argued that the alleged complaint relied upon by the department was undated, had never been formally investigated, and was not even filed before police authorities. The petitioner also submitted that the image of the alleged cash receipt recovered from the mobile phone did not establish that he or his family members had received or paid any cash amount. It was further contended that the petitioner had no connection with Crown Decor Pvt. Ltd., Olympic Decor LLP, the concerned employee, or the author of the complaint.
