9911796707
TMI Blog2017 (1) TMI 1378X X X X Extracts X X X X X X X X Extracts X X X X ..... which has no base. Under the circumstances, on the aforesaid ground alone, the impugned reassessment proceedings deserves to be quashed and set aside. - Decided in favour of assessee - Special Civil Application No. 20695 of 2016 - - - Dated:- 28-12-2016 - M. R. Shah And B. N. Karia, JJ. Mr B S Soparkar, Advocate for the Petitioner Mrs Mauna M Bhatt, Advocate for the Respondent JUDGMENT ( Per : Honourable Mr. Justice M. R. Shah ) [1.0] RULE. Ms. Mauna Bhatt, learned advocate waives service of notice of rule on behalf of the respondent. [1.1] In the facts and circumstances of the case and with the consent of the learned advocates appearing on behalf of the respective parties, the present petition is taken up for final hearing today. [1.3] By way of this petition under Article 226 of the Constitution of India the petitioner assessee has prayed for an appropriate writ, order or direction to quash and set aside the impugned notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) by which the Assessing Officer has sought to reopen the assessment for the Assessment Year 2009-10 alleging inter alia that the income charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tel, Director of Sterling Addlife Pvt. Ltd., as purchaser of the land. 3. Further, the AO while finalizing the assessment for A.Y. 2009-10 in the case of Shri Kamal M. Gohil noted that, the ISCON Group i.e. M/s. Palitana Sugar Mills Pvt. Ltd. which is part of the ISCON Group, has used the same person i.e. Shri Kamal M. Gohil, for transaction of land in A.Y. 2009-10. The relevant findings of the AO in the assessment order for A.Y. 2009-10 made in the case of Shri Kamal M. Gohil is as under;- Shri Kamal M. Gohil has entered into an Agreement for sale without possession with three persons namely, Shri Bharat Jayantilal Sanghavi, Shri Ketan Jayantilal Sanghavi and Shri Dilip Jayantilal Sanghavi (Land owners) on 20/05/2008 for a piece of land admeasuring 11837 sq meters bearing Block No.131 situated at Sanathal, Taluka Sanand. As per agreement, assessee paid ₹ 51,100/- to land owner i.e. Sanghavi Brothers and total consideration for land was fixed for ₹ 75,51,000/-. Subsequently, a sale deed was executed on 20/02/2009 amongst (Buyer) M/s. Applewoods Estate Pvt. Ltd, (Sellers) Sanghavi Brothers (Shri Bharat Jayantilal Sanghavi, Shri Ketan Jayantilal Sanghavi an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the hands of Kamal Gohil, who is absconder as far as income tax proceedings are concerned. The account of Kamal Gohil are also used to make payments of ISCON Group. The group has purchased a land property at Baroda and and a project ISCON HEIGHTS has been constructed on this land. The land has been purchased by the group from Vasanwala Group concern M/s. Vraj Reality. It is noticed that Kamal Gohil has made payment of ₹ 2 Crores on behalf of ISCON Group to M/s. Vraj Reality, which was returned subsequently to Kamal Gohil. During enquiries Shri Rajesh Shah, Partner of M/s. Vraj Reality stated that ₹ 2 Crores was received by him from ISCON Group for purchase of a land situated at Baroda, however, funds were returned as ISCON Group, as they chose another concern to execute sale deed of the land. He also stated that Kamal M. Gohil is not known to him and instruments for credit and debit of the funds were handed over to them by ISCON Group key person Amit Gupta. 3. From the above facts and findings given by the Assessing Officer in the assessment order of A.Y. 2009-10 in the case of Shri Kamal M. Gohil, it is crystal clear that, the assessee M/s. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Senior Advocate appearing on behalf of the petitioner assessee that considering the entire reasons recorded to reopen the assessment, it appears that the main allegations are against one Shri Kamal M. Gohil and ISCON Group. It is submitted that with respect to most of the transactions between Shri Kamal M. Gohil, Shri Jayeshbhai T. Kotak, M/s. Palitana Sugar Mills Pvt. Ltd and ISCON Group, the petitioner assessee has nothing to do with the same. [3.3] It is further submitted by Shri Soparkar, learned Senior Advocate appearing on behalf of the petitioner assessee that in fact it is alleged that the aforesaid Shri Kamal M. Gohil is the front man of ISCON Group headed by Shri Pravin Kotak and Shri Amit Gupta and the group uses Shri Kamal Gohil as a confirming party in the groups land activities. It is submitted that in the present case the petitioner assessee is the purchaser and there is no allegation that any on money is paid by the petitioner assessee either to the seller and /or even to the said Shri Kamil Gohil, who signed as a confirming party in the transaction between the petitioner assessee and the original owner of the land. [3.4] It is submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and /or by signing the same as confirming party. Considering the reasons recorded, it appears that the allegations are with respect to the transactions entered into by Shri Kamal M. Gohil with M/s. Palitana Sugar Mills Pvt. Ltd, M/s. J.P. Infrastructure Pvt. Ltd., M/s. Sterling Addlife India Pvt. Ltd, Shri Jayeshbhai T. Kotak, Shri Girishbhai Naranbhai Patel, Director of Sterling Addlife Pvt. Ltd. and ISCON Group. The said transactions are with respect to the lands situated at Bhavnagar. However, the petitioner assessee has nothing to do with such transactions. The only transactions entered into by the petitioner assessee is with respect to the land admeasuring 11837 sq meters, bearing Block No.131 situated at Sanathal, Taluka Sanad, for which the sale deed was executed on 20/02/2009 between the petitioner assessee and the original owner. It is true that in the said documents / sale deed the aforesaid Shri K.M. Gohil signed as a confirming party. However, it is required to be noted that the petitioner assessee is a purchaser, who has paid the entire amount of sale consideration of ₹ 9,20,20,500/- by cheques. There is no allegation whatsoever that any on money was paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
