Amitkumar Chandulal Rajani Vs ITO (Gujarat High Court)
The writ petitions before the Gujarat High Court challenged reassessment notices dated 30 March 2021 issued under Section 148 of the Income-tax Act, 1961 for Assessment Years 2013–14, 2014–15, and 2015–16, along with orders disposing of the petitioner’s objections. The petitioner had filed original returns of income for all relevant years within the time prescribed under Section 139(1). However, the Assessing Officer recorded reasons alleging that the petitioner had not filed returns for certain years and had carried out transactions of ₹1,68,70,100 through M/s National Shroff & Company, based on information received from the DCIT, Central Circle, Rajkot, following survey and search operations conducted in September 2014.
Read SC Judgment in above case: Borrowed Satisfaction & No Tangible Material: SC Upholds Quashing of Reassessment
The petitioner contended that the reasons recorded were factually incorrect, as returns had been duly filed, and that the reassessment notices were issued without any tangible material linking the petitioner to the alleged escapement of income. It was further argued that despite requests, the Department failed to supply copies of seized material or statements relied upon, and that the reasons reflected borrowed satisfaction, mechanical recording, and complete non-application of mind. The petitioner also challenged the sanction granted under Section 151 as mechanical.
