JUDGMENT

Akil Kureshi, J. - The petitioner has challenged a notice of reopening of assessment dated 29th March, 2018 under which the respondent no.1 Assessing Officer has reopened the petitioner''s assessment for A.Y. 2011-12. In order to issue the notice, the Assessing Officer had recorded following reasons :

"1. In this case return of income for A.Y. 2011-12 has been filed on 25.3.2013 declaring total income at Rs. NIL/. The assessee is a builder and developer.

2. A detailed investigation report has been forwarded by Directorate of Investigation, Unit1( 2), Ahmedabad regarding survey action conducted on M/s. Mudra Finvest (Guj) Ltd. On 8.12.2016. The entity is involved in the jewellery business.

3. Four hard disk which contain digital data were impounded from the premises, 6 ground floor, revdi bazaar, Ahmedabad during survey. On examination of these disks it is seen that M/s. MUDRA REAL ESTATE PRIVATE LTD is a group entity who has constructed and developed project "4D SQUARE" in Ahemdabad - Gandhi Nagar road.

3.1 The tally data from the disk, contained ledgers of various parties cash book, trial balance, P/I account and balance sheet of M/s. Mudra Real Estate Private Ltd. For F.Y. 2010-11. On perusal of the same it is seen that huge amount was paid in cash to various entities. The name of AKSHAR BUILDER AND DEVELOPER PAN : AANFA3072H appears as one of these entities and is JV PARTNER in the development and construction of ''4D SQUARE''. A cash amount of Rs. 3,54,82,000/was paid to M/s. Akshar Builder and Developers on different dates. The ledger account retrieved from the disks of the period 1.4.2010 to 31.3.2011 showing cash entries paid to M/s. Akshar Builders and Developers along with other information is forwarded to the undersigned.

4. Specific information has been passed in the case of M/s. Akshar Builders and Developers regarding cash payments made by M/s. Mudra Real Estate Pvt. Ltd. Ahmedabad to M/s. Akshar Builders and Developers. The assessee firm M/s. Akshar Builders and Developers has filed Nil return of income for the A.Y. 2011-12. The information received from DGIT (Inv) Unit 1(2), Ahmedabad is credible information. The cash amount received amounting to Rs. 3,54,82,000/is not accounted for and not offered for taxation.

5. It is worth mentioning that the statement of Shri. Sanjaykumar Hundia Director of M/s. MUDRA REAL ESTATE PRIVATE LTD was recorded under section 131 of the IT Act on 25.1.2018. He has admitted to knowing M/s. Akshar Builders and Developers who is co-developer of the project ''4D Square''. The cash book of M/s. Mudra Real Estate Pvt. Ltd. Ahmedabad which is enclosed also reflects the amount paid to M/s. Akshar Builder and Developer.

6. The analysis of the return of income filed does not reflect these transactions in the accounts or income. The return of income for AY 2011-12 does not reflect any of the above transaction. The statement by the director of M/s. Mudra Real Estate Pvt. Ltd. the cash book,ledger account reveal that the assessee is having cash income of Rs. 3,54,82,000/for FY 2010-11 for FY 2010-11 relevant to A.Y. 2011-12 which is not accounted for or disclosed for taxation.

7. In view of the above, I have reason to believe that income chargeable to tax which has escaped assessment to the tune of Rs. 3,54,82,000/( Rs. Three Crore fifty four lakhs eighty two thousand only) chargeable to tax within the meaning of Explanation 2(b) of Section 147 of the I.T. Act, 1961. As such it is a fit case for issuance of notice under section 148 of the Income Tax Act, 1961.

8. In this case, since more than four years have lapsed from the end of assessment year under consideration, hence necessary sanction to initiate proceedings under section 147 and to issue notice under section 148 of the I.T. Act may be accorded as per provisions of Section 151 of the Income Tax Act."

2. Upon being supplied the reasons, the petitioner filed objections to the notice of reopening under communication dated 28th Novem