Mrunal Santramdas Varma Vs ACIT (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Mrunal Santramdas Varma and quashed the notice dated 30.03.2025 issued under Section 148 of the Income-tax Act, 1961 for Assessment Year 2021-22. The Court held that the reassessment was founded on conjectures and surmises because the seized inquiry-register entry did not establish any live nexus, direct or indirect, with the petitioner or his land purchase.
The petitioner had filed his return for AY 2021-22 on 10.03.2022 declaring total income of Rs. 99,65,040/-. Along with co-purchasers Shri Gauravbhai Santarambhai and Shri Tarunbhai Santarambhai, he purchased land at Moje Adalaj bearing Survey Nos. 184 and 182 through registered sale deeds dated 01.03.2021 for considerations of Rs. 93,00,000/- and Rs. 63,00,000/- respectively.
A search under Section 132 of the Income-tax Act was conducted on 28.09.2021 at the premises of B Safal Group and City Estate Management India, a real estate broker providing brokerage services to the B Safal Group. Inquiry registers containing details of lands and plots, survey numbers, areas and asking rates were seized. One entry dated 18.06.2020 concerned land at Moje Adalaj and referred to Survey Nos. 182, 183, 184, 189 and 190, with an area of 8.34 bigha and the name “Krupeshbhai Gajipara”.
