TaxTMI 
TaxTMI 
2026 (5) TMI 230
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....r Explanation 2(iv) to Section 148 and proviso to Section 148A(c) of the Act alleging escapement of income on the basis of information received pursuant to a search. 4. A search and seizure action under Section 132 of the Act was carried out on 28.09.2021 in the case of B Safal Group and M/s. City Estate Management India, a real estate broker, during which inquiry registers containing details of various properties and their asking rates were seized. A statement of Shri Pravin Nagjibhai Bavadiya, proprietor of M/s. City Estate Management India, was recorded, wherein it was stated that such registers contained details of properties available for sale. 5. One of the entries in the seized register dated 18.03.2019 pertained to land situated at Godhavi bearing Survey No. 575. On verification, it is found that the said land was purchased on 10.03.2021 by the petitioner. 6. As per the registered sale deed, the property was purchased for Rs. 1,35,00,000/-, whereas the satisfaction note refers to Rs. 81,00,000/-. 7. As per the seized material, the alleged value of the property was Rs. 7,09,68,253/- and the Respondent alleged that the difference of Rs. 6,28,68,253/- represented u....
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....desang Vaghela and Jayendrasinh Ghelubhai Vaghela. No inquiries have been made by the department on Shri Manish whose name appears on the seized inquiry register. It is contended that neither the seized material nor the statement of Shri Pravin Nagjibhai Bavadiya makes any reference to the Petitioner. The seized inquiry register mentions the name of Shri Manish as a broker, who is not known at all to the petitioner. It is submitted that department has neither made any inquiries with either Shri Manish or above named two sellers nor recorded their statements in respect of alleged on-money payments. Even otherwise, the seized inquiry register is a dumb document having no evidentiary value in the eyes of law. The seized inquiry register is not per se able to establish whether the transaction has been actually executed at the rates specified therein. Thus, it is submitted that the impugned notice is required to be quashed and set aside in such circumstances, as the information from the loose paper does not even remotely connect to the petitioner. 16. Learned Senior Advocate Mr. Hemani, has submitted that the notings found in the seized inquiry register has been wholly misconstrued b....
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....o believe" that income had escaped assessment, under the amended regime, the jurisdictional precondition is the actual escapement of income. In the present case, there is no material whatsoever to establish any such escapement. 21. Vehemently opposing the present writ petition, the submissions advanced as recorded here-in-above, learned Senior Standing Counsel Mr. Aaditya Bhatt has submitted that as per the provision of Section 148 of the Act, more particularly Clause 4 to Explanation 2, it cannot be said that the information, which is unearthed during the search proceedings from the concerned broker, does not pertain or pertains to any information contained therein relates to the assessee. 22. It is submitted that the legislature has deliberately used the expansive phrases "pertains to" and "relate to". Unlike the stringent requirement of "belongs to" under the erstwhile Section 153C of the Act and hence, as per the decisions of the Supreme Court in the case of Raymond Woollen Mills Limited Vs. Income-tax Officer, [1999] 236 ITR page 34 (SC), the revenue has only to see whether there was a prima facie material on the basis of which the department could reopen the case and th....
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....se belonged to the clients and not to him. Question No.26, when he was confronted with the annexures, he has referred that such annexure contained the details of lands/plots available for sale at different locations of Ahmedabad and each entry contains the details of land, location, village, Taluka, survey number, area, rate, owner of the land, etc., and he doesn't know the current status regarding the sale of the land. From the seized material, a loose paper chit was found, which makes reference to Survey No.575 situated at Moje Godhavi, which was sold by the petitioner on 10.03.2021. The relevant contents of the said chit are as under: "18.03.2019/2014 Moje:- Godhavi Opp. Godhavi Village S.No. 566/ 1+2 / 575 26,000 Sq.(Survey No.) Rate 8500/- S.No. 490 20000/- Sq. (Survey No.) Rate 7500/- Bro Manish Bopal" 27. As per the registered sale deed, the property was purchased for Rs. 1,35,00,000/-, whereas the satisfaction note refers to Rs. 81,00,000/-. As per the seized material, the alleged value of the property was Rs. 7,09,68,253/- and the respondent alleged that the difference of Rs. 6,28,68,253/- represented unaccounted cash ("on-money") paid by the petitioner. By co....