Shardaben Hashmukhbhai Patel Vs ITO (Gujarat High Court)
Section 148 Notice Set Aside as Seized Documents Had No Direct Link With Assessee; Gujarat HC Cancels Reopening Because Agricultural Land Sale Was Linked to Later NA Conversion; Reassessment Invalid Where Revenue Relied on Hypothetical Escapement of Income; Gujarat HC Quashes Section 271DA Penalty After Setting Aside Reopening Proceedings.
In the case of Shardaben Hashmukhbhai Patel Vs ITO, the Gujarat High Court examined the validity of a reassessment notice issued under Section 148 of the Income Tax Act for Assessment Year 2020–21, a reassessment order passed under Section 147, and a penalty notice issued under Section 271DA of the Act.
The petitioner challenged the reopening proceedings on the ground that the issue had already been decided by the High Court in the case of a co-owner of the same land, namely Muktaben Patel, whose reopening proceedings on identical facts had been quashed earlier. The petitioner argued that both cases arose from the same sale deed dated 15.06.2019 relating to agricultural land situated at Village Medha, Taluka Kadi, District Mehsana.
The Revenue opposed the petition by contending that, although the reassessment resulted in nil income and no addition was made, separate penalty proceedings under Section 271DA had been initiated and therefore the notice and order should not be interfered with at that stage.
