Vipul Chavda Vs State of Gujarat & 3 (Gujarat High Court)
Gujarat High Court Orders Robbery Cash Handed to Income Tax Department for Unaccounted Funds Probe
The Gujarat High Court has set aside a lower court order concerning Rs. 13 lakh in cash recovered following a highway robbery, directing the sum to be handed over to the Income Tax Department (ITD) for investigation into potential unaccounted income. The ruling emphasizes the precedence of the Income Tax Act’s provisions in cases where seized assets are suspected to be undisclosed wealth.
The case originated from a robbery reported at Kamrej Police Station, Surat, where Rs. 13 lakh in cash was stolen. During the investigation, police recovered the entire amount from the accused individuals. The Investigating Officer, identifying the significant sum, subsequently informed the Deputy Director of Income Tax (Inv.)-II, Surat.
Following the recovery, two separate applications were filed before the Judicial Magistrate First Class (JMFC), Kathor. The ITD filed an application (Exh.3) seeking custody of the cash, asserting it as potentially unaccounted money subject to income tax investigation. Concurrently, the original first informant, Shaukatali Imamhussain Shaikh, filed an application (Exh.6) for the interim release and possession of the recovered currency. The JMFC, Kathor, rejected both applications in a common order dated October 4, 2017.
