Tarun Santramdas Varma Vs ACIT (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Tarun Santramdas Varma challenging the notice dated 30.03.2025 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2021-22. The petitioner had filed his return on 10.03.2022 declaring total income of Rs.1,10,58,190/-. He and two co-purchasers purchased land bearing Survey Nos.184 and 182 at Moje Adalaj through a registered sale deed dated 01.03.2021 for Rs.93,00,000/- and Rs.63,00,000/- respectively. The reopening was based on an inquiry-register entry dated 18.06.2020 seized during a search at City Estate Management India on 28.09.2021. The Revenue alleged that the petitioner had paid on-money of Rs.3,73,56,434/- in relation to Survey No.182. The Court found that the register entry predated the actual purchase by approximately nine months, covered five survey numbers and 8.34 bigha against the petitioner’s purchase of only two survey numbers totalling approximately 4 bigha, and contained the name “Krupeshbhai Gajipara”, who was unconnected to the petitioner. The broker’s statement also described the registers as records of land/plots available for sale. The Court held that the seized material did not establish a direct or indirect link or live nexus with the petitioner. Relying additionally on recent decisions concerning the same search and inquiry register, the Court held the reopening under Section 148 to be ill-conceived and unsustainable and quashed the notice dated 30.03.2025.
