Reassessment Based on Third-Party Data Without Nexus is Invalid: Gujarat HC

Dhirajlal Laljibhai Patel Vs ACIT (Gujarat High Court) The Gujarat High Court considered a group of petitions challenging notices issued under Section 148 of the Income Tax Act, 1961, for reopening assessments of various petitioners relating to the purchase of bungalows in Scheme Vrundavan-9. The notices were issued by the Assessing Officer (AO) based on information obtained during a search under Section 132 of the Act conducted at the premises of Dr. Dilip Ambalal Modi on 16.11.2021, involving the MHS Group. During the search, loose papers and handwritten notes were seized containing financi...