Mukesh Manubhai Shah Vs ACIT (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Mukesh Manubhai Shah challenging the notice issued under Section 148A(1) of the Income-tax Act, 1961, the order passed under Section 148A and the consequential notice dated 19.06.2025 reopening the assessment for Assessment Year 2019-20. The petitioner, Managing Director of Data Processing Forms Private Limited and partner in M/s Date International, M/s Form Stores and M/s Superb World Biotech LLP, had filed his return for AY 2019-20 on 27.08.2019 declaring total income of Rs.33,98,400/-. He had also responded to summons issued under Section 131(1) for FY 2018-19 to 2020-21.
On 30.03.2025, the respondent issued notice under Section 148A(1), stating that information received from State Bank of India showed transactions of Rs.37,40,31,604/-, comprising debit of Rs.18,70,59,704/- and credit of Rs.18,69,71,900/- during FY 2018-19. The petitioner filed a detailed reply and objections, explaining that the transactions were undertaken through banking channels and did not involve cash deposits. He furnished details of the parties, including PAN, opening balances, receipts and payments, closing balances, interest paid and remarks regarding the nature of the transactions. He also explained that funds had been borrowed in an earlier year for financial requirements arising from acquisition of additional shares of Data Processing Form Pvt. Ltd. and that repayments were made from available funds or further borrowings when necessary. Interest on such borrowings had not been claimed as a deduction while computing total income.
