Naliniben Jagdishkumar Gandhi Vs ITO (Gujarat High Court)
The Gujarat High Court allowed a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2022-23 and quashed the reassessment proceedings initiated against the petitioner. The Court held that the Revenue failed to establish any independent corroborative material linking the petitioner to the alleged “on-money” transaction.
The petitioner had filed the return of income for Assessment Year 2022-23 on 25.07.2022 declaring total income of Rs.1.48 crore. During the relevant year, the petitioner sold her 30% share in a non-agricultural land situated at Survey No.465, Village Shela, to co-owner Atulkumar Gangadas Patel through a registered sale deed dated 13.08.2021 for consideration of Rs.2 crore. The capital gain arising from the transaction was disclosed in the return of income, which was processed under Section 143(1) without any variation.
Subsequently, the Assessing Officer issued a notice under Section 148 dated 30.03.2025 seeking to reopen the assessment. Along with the notice, the satisfaction note and approval recorded by the authorities were also supplied to the petitioner. The petitioner filed objections, which were rejected by the Revenue through communication dated 06.06.2025, following which the present writ petition was filed.
