Jitendra Mansukhlal Adesara Vs ACIT (Gujarat High Court)
The Gujarat High Court disposed of a batch of writ petitions by a common judgment, treating Special Civil Application No. 20844 of 2019 as the lead matter. The petitioner challenged notices dated 12.09.2019 issued under Section 153C of the Income-tax Act, 1961 and the order dated 22.10.2019 rejecting the petitioner’s objections to those notices.
The petitioner, proprietor of Amrut Jewellers, carried on business in gold ornaments. A search under Section 132 was conducted on 27.10.2017 at Rajkot Airport in the cases of employees of Jay Matadi Air Service and Bright Courier. During the search, gold bullion and jewellery were seized. According to the satisfaction note, one parcel containing fine gold weighing 622.48 grams and valued at ₹18,37,561 had been sent by Chhunnu Mal Mahendra Jain of Delhi to the petitioner’s concern. The Assessing Officer recorded satisfaction that the seized gold and related information had a bearing on the determination of the petitioner’s total income and issued notices under Section 153C for Assessment Years 2012-13 to 2017-18.
The petitioner filed detailed objections contending that the gold had been sent only for job work, that the seized material did not relate to the six preceding assessment years, that no incriminating material existed for those years, that proceedings under Section 143(2) had already been initiated for Assessment Year 2018-19, and that the statutory requirements for invoking Section 153C had not been fulfilled. The petitioner also contended that the satisfaction note was legally defective and that separate satisfaction notes were required. These objections were rejected by the Assessing Officer on 22.10.2019. Thereafter, a notice under Section 143(2) for Assessment Year 2018-19 was also issued.
