Deepak Chinubhai Shah Vs DCIT (Gujarat High Court)
Gujarat High Court Quashes Section 148 Notice Because Seized Document Did Not Match Assessee’s Land Transaction; Section 148 Reopening Invalid Because Seized Document Referred to Different Date, Seller and Land Status; Gujarat High Court Rejects Reopening Based Solely on Handwritten Inquiry Register Found During Search; Section 148 Proceedings Set Aside Because Agricultural Land Was Incorrectly Treated as Non-Agricultural Land; High Court Holds Mere Suspicion of On-Money Transaction Cannot Justify Income Tax Reopening; Reassessment Notice Invalid Where Search Statements Did Not Mention Assessee.
The Gujarat High Court allowed the writ petitions challenging notices dated 31.03.2025 issued under Section 148 of the Income Tax Act for Assessment Year 2021-22. The petitioners sought quashing of reassessment proceedings initiated on the allegation that income amounting to Rs. 25.76 crore had escaped assessment.
The petitioner had filed the return of income on 04.02.2022 declaring total income of Rs. 79.81 lakh. The reassessment proceedings were initiated after search actions conducted under Section 132 in the cases of B Safal Group, City Estate Group, City Estate Management India, and City Procon Realtors Pvt. Ltd. During the search, a handwritten extract of an inquiry register was found containing certain land-related details dated 22.04.2021.
