Gujarat High Court
Laxmanbhai Amarsingh Chavda vs Assessment Unit, Income Tax Department on 2 September, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 9080 of 2023
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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Approved for Reporting Yes No
✔
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LAXMANBHAI AMARSINGH CHAVDA
Versus
ASSESSMENT UNIT, INCOME TAX DEPARTMENT & ANR.
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Appearance:
MR MANISH J SHAH(1320) for the Petitioner(s) No. 1
KARAN G SANGHANI(7945) for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 02/09/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned advocate Mr. Manish J. Shah for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani for the respondent.
2. Having regard to the controversy involved in this petition, which is in narrow compass, with the consent of the learned advocates for Page 1 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined the parties, the matter is taken up for hearing.
3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of Rule for the respondent.
4. Brief facts of the case are that:
4.1 The petitioner being an agriculturist did not file the return on income under Section 139(1) of the Income Tax Act, 1961 (for short 'the Act')for the Assessment Year 2018-19. The petitioner received a notice under Section 148A(b) of the Act dated 10.3.2022 on the ground the petitioner deposited cash of Rs.16,20,000/- in the Bank which has remained unexplained. The petitioner filed a reply dated 17.3.2022 objecting the proposal to issue notice under Section 148 of the Act for reopening of the assessment, contending that Page 2 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined the petitioner is a farmer and cash deposit was made out of the agricultural income earned by the petitioner.
4.2 The respondent- Assessing Officer passed an order under Section 148A(d) of the Act on 29.3.2022. Notice under Section 148 was also issued on the same date. In response to notice issued under Section 148 of the Act, the petitioner filed return of income on 4.6.2022 declaring total income of Rs.22,240/-. 4.3 It appears that thereafter notices under Section 142(1) were issued from time to time on 28.10.2022, 25.11.2022 and 1.2.2023, which were duly replied by the petitioner on 8.11.2022, 25.11.2022 and 11.2.2023. 4.4 The respondent - Assessing Officer, after issuance of notice under Section 142(1) of the Act on 1.2.2023, issued the show-cause notice Page 3 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined dated 9.2.2023 proposing addition in the assessment as per provisions of Section 144B of the Act.
4.5 The respondent Assessing Officer required the petitioner to file reply to the show-cause notice dated 9.2.2023, to be submitted on or before 16.2.2023. Accordingly, the petitioner submitted the reply along with requisite annexures on the Income Tax Portal on 16.2.2023. The acknowledgment of filing of reply is placed on record at Page-125 of the paper-book.
4.6 However, the Assessing Officer without considering the reply dated 16.2.2023 filed by the petitioner and response to the show-cause notice dated 9.2.2023, has passed the impugned Assessment Order under Section 147 read with Section 144B dated 24.2.2023 on the ground Page 4 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined that no response was given by the petitioner to the show-cause notice dated 9.2.2023 by observing as under:
"4.1. Again a notice u/s 142(1) dated 01.02.2023 has been issued to the assessee for submitting the details of Copy of Khatauni (crop record maintained by State Govt), documentary evidences of the expenses incurred on - Seed - Fertilizer - Pesticides - Labour Charges Water Bill Electricity Bill Processing cost, Land cess - Other Taxes, Kisaan Credit card etc., alongwith justification regarding source of cash deposits. In response to this notice no reply has been received on the part of the assessee. On 11.02.2023, assessee filed a reply in response to notice u/s 142(1) alongwith land and sale details but did not submit any documentary evidences regarding agricultural activities undertaken by the assessee and source of cash deposits during the year under consideration. Again a show cause notice for proposed variation has been issued to the assessee on Page 5 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined 09.02.2023, in response to this assessee again did not submit the documentary evidences regarding Copy of Khatauni (crop record maintained by State Govt), documentary evidences of the expenses incurred on Seed - Fertilizer - Pesticides - Labour Charges Water Bill- Electricity Bill -Processing cost, Land cess - Other Taxes, Kisaan Credit card etc. The assessee submitted Talati cum Mantri in confirmation of farming activities, certificate from consumer cooperative society has been prepared in the year 2022 and 2023 and there is nothing on record which can prove that assessee has actually undertaken agricultural activities during the year which means that assessee has prepared all the documents after receipt of notice u/s 148 or after subsequent notices/show cause."
5. Thus, the aforesaid observation made by the Assessing Officer in the impugned Assessment Order dated 24.2.2023 is contrary to the record as the assessee had already Page 6 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined filed reply to the show-cause notice dated 9.2.2023.
6. The aforesaid escape is also not controverted by learned Senior Standing Counsel Mr. Sanghani and a statement at bar is made that he has verified from the order-sheet that the petitioner filed the reply dated 16.2.2023 in response to the show-cause notice dated 9.2.2023 and uploaded the same on portal and is available with the respondent- Assessing Officer.
7. In view of the above undisputed facts, non-consideration of the reply to the show- cause notice has resulted into breach of principles of natural justice. Therefore, without entering into the merits of the matter, the impugned Assessment Order dated 24.2.2023, is hereby quashed and set aside and the matter is remanded to the Assessing Page 7 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025 NEUTRAL CITATION C/SCA/9080/2023 JUDGMENT DATED: 02/09/2025 undefined Officer to pass a fresh de novo order considering the reply dated 16.2.2023 filed by the petitioner in response to the show-cause notice proposing the addition issued on 9.2.2023.
8. Such exercise shall be completed within a period of 12 weeks from the date of receipt of the copy of this order. It is also provided that if the petitioner prays for hearing through video-conference, then the same may be provided as per the provisions of Section 144B of the Act by the Assessing Officer. The petition is accordingly disposed of. Rule is made absolute to the aforesaid extent. No order as to costs.
(BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) SAJ GEORGE Page 8 of 8 Uploaded by SAJ GEORGE(HC01069) on Tue Sep 09 2025 Downloaded on : Tue Sep 09 21:24:18 IST 2025