Reopening of assessment needs prima facie nexus; vague seized material and third-party references cannot sustain notice.

A notice under section 148 based on seized loose paper and a broker's statement was held unsustainable because the material did not prima facie connect the assessee with escapement of income. The entry referred only to a survey number, a rate and a third party name, without any direct link to the petitioner's earlier land sale. Since the land had already been sold and the later non-agricultural conversion was by the purchasers, the alleged linkage was vague and non-specific. The High Court quashed the reopening as invalid.

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Issues: Whether the notice for reopening of assessment under section 148 of the Income-tax Act, 1961 was sustainable when the seized material did not establish a live link with the petitioner and the information was vague and non-specific.

Analysis: The reopening was founded on a loose paper recovered in search proceedings and a statement recorded from a broker. The entry relied upon mentioned a survey number, a rate and a third party name, but did not refer to the petitioner or establish any direct connection with the petitioner's earlier sale of the land. The land had already been sold in 2018 and later converted into non-agricultural use by the purchasers, while the loose paper was dated much later. At the stage of issuing notice, the material must at least prima facie connect the assessee with escapement of income; a vague or retrospective linkage based only on a survey number and an unconnected name is insufficient.

Conclusion: The notice under section 148 could not be sustained and was quashed; the reopening was held invalid and the petition succeeded in favour of the assessee.

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