TaxTMI 
TaxTMI 
2026 (2) TMI 94
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....nior Standing Counsel Mr. Yajnik waives service of notice of Rule on behalf of the respondent. Since a short issue is involved, the writ petition is taken up for final hearing and is disposed of by this order. 3. The present writ petition is filed for quashing and setting aside the notice dated 19.06.2025 issued under Section 148 of the Income Tax Act, 1961 (for short, "the Act") and the order dated 19.06.2025 passed under Section 148A(3) of the Act. FACTS: 4. The petitioner - Rajedhra Mahendarkumar Vadodaria, is the legal heir of late Shri Mahendra Dhirajlal Vadodaria (PAN : ABCPV1114D) (hereinafter referred to as "the deceased assessee"). The deceased assessee filed his Return of Income for Assessment Year 2019-20 on 14.08.2019 d....
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....explained funds, through banking channels, and duly recorded in the books of accounts of the deceased assessee. SUBMISSIONS ON BEHALF OF THE PETITIONER : 10. Learned Senior Advocate Mr. Tusahr Hemani, assisted by the learned advocate Ms. Vaibhavi K. Parikh, appearing for the petitioner has submitted that the provision of Section 147 of the Act can be invoked only if there is actual escapement of income, and not merely on a "reason to believe". It is contended that in the present case, there is no income which has escaped assessment. 11. It is submitted that the investment of Rs.2,00,00,000/- represents capital investment and not income. The interest earned thereon has already been disclosed and taxed under the head "Income from Oth....
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.... invested Rs.2,00,00,000/- in debentures of Kalpataru Fincap Ltd., but failed to substantiate the source of borrowed funds. Consequently, interest expenditure was disallowed. 17. Reliance was placed by him, upon the statement of Shri Ram Lal Nath, recorded during the search proceedings, wherein it was stated that Kalpataru Fincap Ltd. was a bogus entity engaged in providing accommodation entries and that the present petitioner was involved in facilitating such transactions. 18. Learned Senior Standing Counsel Mr. Maunil Yajnik has produced the Assessment Order under Section 147 of the Act dated 21.03.2025 for the very same PAN number which belongs to the deceased assessee, and while referring to the same, submitted that for the Assess....
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....such funds the amount of Rs.30,15,187/- which has been claimed by the petitioner under Section 157 of the Act as deduction has been disallowed. Reference is also made in this regard to provision of Section 57(3) of the Act. ANALYSIS AND FINDINGS : 20. We have heard the learned advocates for the respective parties and perused the material on record. 21. The entire foundation of the reopening of assessment in the present case rests upon the statement of Shri Ram Lal Nath. On careful perusal of the said statement, it is evident that there is no reference whatsoever to the deceased assessee, namely late Shri Mahendra Dhirajlal Vadodaria or to his investment of Rs.2,00,00,000/- in debentures of Kalpataru Fincap Ltd. 22. Though the st....