PCIT Vs Ashokji Chanduji Thakor (Gujarat High Court)
Gujarat High Court, in the case of PCIT Vs. Ashokji Chanduji Thakor, addressed appeals filed by the Revenue against an order of the Income Tax Appellate Tribunal (ITAT), Ahmedabad. The ITAT had remanded the matter back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication, despite the assessee’s failure to respond to notices or appear before the CIT(A). The Revenue challenged this decision, arguing that the ITAT’s order lacked sufficient reasoning.
The High Court referenced its earlier ruling in Tax Appeal No. 710 of 2018 and connected appeals, where it had reversed a similar ITAT order. The court noted that the Tribunal had exercised its discretion improperly, as the assessee had been non-cooperative throughout the proceedings. Despite multiple opportunities, the assessee had neither filed a response nor appeared before the AO or CIT(A). Consequently, the AO added the amount as unexplained investment, a decision later upheld by the CIT(A).
The High Court emphasized that once CIT(A) had adjudicated the matter on merits, ITAT should not have interfered without assigning valid reasons. The court observed that remanding the matter back for fresh consideration was unjustified, particularly when the assessee had repeatedly failed to present his case. It reaffirmed that the addition made by the AO and sustained by CIT(A) was legally justified, given the absence of any explanation from the assessee regarding the investment in question.
