Live nexus required for reopening assessment; seized register entry without link to assessee cannot justify Section 148 action.

Reassessment reopening under Section 148 was held unsustainable because the seized inquiry register entry did not establish a live nexus with the assessee or provide relevant information suggesting escapement of income. The entry pre-dated the assessee's purchase, referred to land available for sale rather than the assessee's transaction, covered a larger survey number than the portion purchased, and named an unrelated person. The broker's statement also indicated that such registers merely reflected asking rates or market survey details. In the absence of direct or indirect linkage between the seized material and the assessee, the jurisdictional basis for reopening was not made out.

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Issues: Whether the notice reopening assessment under Section 148 of the Income-tax Act, 1961, could be sustained on the basis of a seized inquiry register entry allegedly showing on-money payment, and whether the seized material established a live nexus or relevant information suggesting escapement of income for the assessee.

Analysis: The seized entry was dated 29.11.2018, whereas the assessee's purchase was made much later on 03.04.2021, so the entry only indicated an asking rate or market survey for land then available for sale and did not record the assessee's transaction. The register entry covered the entire survey number, while the assessee had purchased only a portion of the land, and the name appearing in the register was that of an unrelated person. The statement of the searched broker also indicated that such registers contained details of land or plots available for sale and did not, by itself, establish any concluded undisclosed transaction with the assessee. In the absence of any direct or indirect link between the seized material and the assessee, the jurisdictional basis for reopening was not made out.

Conclusion: The reopening notice was unsustainable and the challenge succeeded in favour of the assessee.

Ratio Decidendi: Reassessment under Section 148 cannot be founded on a seized document unless the material, on a rational and live connection, pertains to or relates to the assessee and provides information suggesting escapement of income; a mere survey-number match or uncorroborated register entry is insufficient.

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