Bipinkumar Girdharlal Parekh Vs ACIT (Gujarat High Court)
The petitioner challenged the order dated 19.05.2025 passed under Section 148A(d) of the Income Tax Act, 1961, along with the consequential notice dated 23.05.2025 issued under Section 148 for Assessment Year 2021-22.
The petitioner was engaged in the transportation business and had a business relationship with M/s. DCW Ltd., hiring trucks for transportation services. The return of income for A.Y. 2021-22 was filed on 14.12.2021 declaring a net total income of Rs.38,51,910, and the return was processed under Section 143(1). Subsequently, a search under Section 132 was conducted on 18.11.2023 in the case of M/s. DCW Ltd. Based on incriminating material found during that search, the Assessing Officer issued a notice under Section 148A(1) alleging escapement of income. The petitioner replied by explaining transportation income supported by bills amounting to Rs.6,68,95,812. The Revenue alleged that transportation bills had been inflated by Rs.32,71,205, resulting in escaped income. The petitioner objected to the reopening, but the objections were rejected under Section 148A(d), followed by issuance of a notice under Section 148.
The petitioner contended that there was no escapement of income and that the reassessment proceedings were governed by Sections 147 to 151 as they existed prior to the amendments introduced by the Finance (No. 2) Act, 2024, since the search had been conducted between 01.04.2021 and 01.09.2024. It was argued that Section 152(3) made the earlier statutory regime applicable and that the reopening notice issued on 23.05.2025 for A.Y. 2021-22 was barred by limitation under Section 149, as it was issued after expiry of three years from the end of the relevant assessment year.
