PCIT Vs Ashokji Chanduji Thakor (Gujarat High Court)
Gujarat High Court, in a ruling in the case of Principal Commissioner of Income Tax (PCIT) Vs Ashokji Chanduji Thakor, has set aside an order by the Income Tax Appellate Tribunal (ITAT) that had remitted the matter back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication. The High Court sharply criticised the Tribunal’s decision, terming it “non-speaking and unreasoned,” particularly in light of the assessee’s persistent non-cooperation throughout the assessment and first appellate stages.
The case stemmed from a search action conducted at the premises of Ashokji Chanduji Thakor on September 21, 2010. Following the search, a notice under Section 153A of the Income Tax Act, 1961, was issued to the assessee on December 18, 2012, for the assessment years (AY) 2005-06 to 2010-11. In response, the assessee filed returns of income for these years on January 10, 2013, declaring a total income of Rs. 81,430/- for AY 2005-06.
During the search, cash amounting to Rs. 10,02,940/- and jewellery worth Rs. 70,400/- were found, with Rs. 9,88,500/- in cash being seized. The Assessing Officer (AO) noted during the search proceedings that the ‘Thakore Group,’ to which the assessee belonged, was allegedly involved in land sale and purchase transactions that were not fully recorded, potentially generating substantial unaccounted cash.
