Sagar Mukesh Sheth Vs ITO (Gujarat High Court)
The writ petition before the Gujarat High Court challenged a notice dated 27.03.2026 issued under Section 148 of the Income Tax Act, 1961 for reopening the assessment of the petitioner for Assessment Year 2022-23. The reopening proceedings arose after a search and seizure operation under Section 132A was conducted on Bsafal Group and City Estate Groups, during which certain material relating to alleged cash transactions in real estate dealings around Ahmedabad was seized. The revenue relied upon documents recovered from City Estate Management India, a real estate broker allegedly connected with land transactions involving cash components. A statement of Shri Pravin Nagjibhai Bavadiya recorded under Section 131 was also relied upon in the impugned notice.
The revenue alleged that a loose paper seized during the search referred to Survey No.101 at Moje Shela and mentioned a rate of Rs.17,000 per square yard. Based on this rate, the Assessing Officer calculated the total value of the land at Rs.16,00,11,502 and compared it with the consideration of Rs.2,00,00,000 reflected in the sale deed executed by the petitioner on 12.10.2021. The differential amount was treated as alleged “on-money” paid in cash, forming the basis for reopening the assessment.
