Gujarat High Court

Laxmanbhai Amarsingh Chavda vs Assessment Unit, Income Tax Department on 2 September, 2025

Author: Bhargav D. Karia

Bench: Bhargav D. Karia

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                            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

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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

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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

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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

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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

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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

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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