TaxTMI 
TaxTMI 
2026 (4) TMI 1889
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....he petitioners have assailed the notice dated 31.03.2025 issued by the respondent under section 148 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) for the Assessment Year 2020-2021. 3. For convenience, SCA No.3676 of 2026 is considered as a lead matter and the facts of the case are incorporated from SCA No.3676 of 2026: 3.1 The petitioners filed the return of income on Assessment Year: 2020-21 on 29.01.2021, declaring the total income of Rs. 17,50,220/-. A notice under Section 148 of the Act was issued on 31.03.2025, alleging escapement of income on the ground that a search under Section 132 of the Act was conducted in the case of BSafal Real Estate and City Estate Management Group, during which certain d....
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....e land was sold for a total of 75 lakhs for Survey Nos.347 and 351, situated at Sitapur whereas, as per the seized document, the value of the immovable property under consideration, the rate is mentioned as 2.25 crores per vigha and hence, it is alleged by the revenue that a huge amount was paid in cash as onmoney. 4. Learned advocate Mr.Hardik Vora appearing for the petitioners has submitted that the petitioners, who have already sold their land on 29.04.2019 are sought to be roped in the reassessment proceedings on an entry made in a loose paper in the inquiry Registered on 28.09.2019, which is subsequent and hence the petitioners cannot be held responsible by alleging that he has paid some on-money by cash. It is thus submitted that t....
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....vs. Income-tax Officer, [1999] 236 ITR 34 (SC), the revenue has only to see whether there was a prima facie some material on the basis of which the department could reopen the case and the sufficiency or correctness of the material is not a thing to be considered at this stage of issuance of notice. 5.2 Further reliance is also placed by learned Senior Standing Counsel Mr. Bhatt on the decision of the Supreme Court in the case of Assistant Commissioner of Income-tax vs. Rajesh Jhaveri Stock Brokers (P.) Private Ltd., [2007] 291 ITR 500 (SC) and it is submitted that the only question which is required to be examined at the stage of issuance of notice is whether there was relevant material on which a reasonable person could have formed a r....
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....r, dealing with land deals in the City of Ahmedabad. Statement under Section 131 of the Act of Shri Pravin Nagjibhai Bavadiya are incorporated in the impugned notice. A specific question No.14, was asked to him with regard to the documents found during the search and in response, he has submitted that 'I confirm that the documents were found and seized from the premises of the propriety entity City Estate Management' It is further responded by him that sometimes the clients come with their land documents or title deeds and there might be such types of documents which are also seized with the above annexures and these belonged to the clients and not to him. Question No.26, when he was confronted with the annexures, he has referred that such ....
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....tion from the government Website "AnyROR", which records the details of the sale deeds. It is true that the cash transactions are done in a clandestine manner using coded script, however, the revenue, before re-opening the assessment has to establish a live link of the assessee on the basis of seized material only. The expression " relates to" and "pertains to" used in Clause(iv) to Explanation 2 to Section 148 of the Act cannot be used in vacuum. The revenue after the seizure of incriminating material is under an obligation to analyze such material, in light of attendant circumstances and record relevancy and a prima facie opinion linking such material establishing escapement of income at the hands of the assessee. The information which is....