Jignesh Ramniklal Doshi Vs DCIT (Gujarat High Court)
The Gujarat High Court examined a writ petition challenging the validity of a reassessment notice issued under Section 148 of the Income Tax Act 1961 and the consequent assessment order passed under Sections 147 read with 143(3) for Assessment Year (AY) 2012–13. The petitioner, engaged in real estate and financing, had originally filed a return of income for AY 2012–13 on 28.09.2012 and later revised it on 19.03.2014. The return was accepted under scrutiny assessment by an order dated 12.03.2015. A subsequent reassessment was carried out in 2019.
On 11.11.2022, a search and seizure operation was conducted by the Investigation Wing in connection with another group, during which documents relating to the petitioner were found and statements were recorded. Based on the seized material, a notice under Section 148 was issued on 31.03.2023 initiating reassessment proceedings. Multiple notices under Section 142(1) followed, and the petitioner submitted replies and documents. A show cause notice proposing additions was issued, to which the petitioner responded. However, without considering the reply, the Assessing Officer passed an order on 18.05.2025 determining higher income by making additions for unexplained expenditure and undisclosed income.
The petitioner challenged the reassessment primarily on the ground of limitation. It was contended that AY 2012–13 fell prior to 01.04.2021, when amendments to reassessment provisions came into force. Therefore, the proviso to Section 149(1) applied, which restricts reopening beyond the prescribed time limits under the earlier regime. The petitioner argued that since the reassessment was based on search proceedings, the provisions of Sections 153A and 153C were relevant, and the limitation period must be computed accordingly. Relying on a prior judgment of the same Court dated 05.01.2026, it was submitted that the outer limit of ten years must be calculated from the end of the assessment year relevant to the year of search.
