Bharat Chandrakant Trivedi (L/H of Chandrakant Shivram Trivedi) Vs ITO (Gujarat High Court)
Gujarat HC Quashes Reassessment Notice Because Seized Documents Had No Nexus With Assessee; Section 148 Notice Set Aside Because Reassessment Was Based on Conjectures and Surmises; Gujarat HC Cancels Reassessment Notice Due to Absence of Direct Link With Seized Material; Reassessment Proceedings Quashed Because Statements of Searched Person Did Not Mention Assessee.
In Bharat Chandrakant Trivedi (L/H of Chandrakant Shivram Trivedi) Vs ITO, the Gujarat High Court quashed a reassessment notice issued under Section 148 of the Income Tax Act for AY 2019-20, holding that the reopening was based on conjectures and surmises without any direct or indirect nexus with the assessee.
The reassessment notice dated 27.03.2025 was issued in the name of the deceased assessee, who had passed away on 26.01.2023. The Revenue alleged that income of Rs.27.11 crore had escaped assessment based on incriminating documents seized during search proceedings conducted in the cases of B Safal Group, City Estate Group, City Estate Management India and City Procon Realtors Pvt. Ltd. The petitioner informed the department about the death of the assessee and denied any transaction with those entities.
The petitioner argued that the reassessment was initiated solely on the basis of a handwritten extract from an inquiry register seized from unrelated third parties. It was submitted that the document neither contained the name nor signature of the assessee and referred to “NA” land, whereas the land sold by the deceased assessee through sale deed dated 05.01.2019 was agricultural land. The petitioner also contended that the statement of the searched person did not mention the assessee.
