Allahabad HC Sentences Retired Tax Officer For Contempt, Granted Relief

The Lucknow bench of the Allahabad High Court has sentenced a retired deputy commissioner of Income Tax, Harish Gidwani, to one week in jail and imposed a fine of Rs 25,000 for contempt of court.

The court instructed Gidwani to surrender before the senior registrar by Friday afternoon, and also directed the registrar to report on the compliance by August 12. However, a division bench later stayed the order of the single judge, temporarily relieving Gidwani.

The sentence was handed down by Justice Irshad Ali in response to a contempt petition filed by senior counsel Prashant Chandra. The court had earlier refused a request from Gidwani’s lawyer for a 10-day extension to surrender.

Justice Ali remarked, “A fine alone would not serve the ends of justice because Gidwani (now retired) was a senior officer, responsible for assessing the applicant, Prashant Chandra, and had committed a grossly reprehensible act. If he is not punished, it would send a wrong message to other officials in the Income Tax Department that such misconduct warrants only a warning or fine, despite the court’s heavy caseload.”

Chandra argued that on March 31, 2015, the high court had nullified an assessment notice issued by the Income Tax Department for the year 2012-2013. The court had determined that Chandra relocated to Delhi during that year and had filed his taxes there, making it improper for the IT Department to issue an assessment notice in Lucknow.

Despite this ruling, Chandra claimed that Gidwani, the assessing officer at the time, failed to remove the outstanding entry from the IT Department’s web portal for over seven years, thereby harming Chandra’s reputation. He alleged that this act of omission was a deliberate and willful defiance of the court’s March 31, 2015 order.

On November 1, 2023, contempt charges were formally brought against Gidwani, who was held responsible for not removing the outstanding entry. Following the hearing, the court reserved its decision, which was delivered on Friday.

Justice Ali took a stern view of the matter, stating, “If the judiciary is to perform its duties and functions effectively and remain true to the spirit with which they are sacredly entrusted, the dignity and authority of the courts must be respected and protected at all costs.”

The court also noted, “This court is also of the opinion that Gidwani’s actions were not only contemptuous but also malicious. He mishandled the petitioner’s finances despite clear directions from this court, and there is no justifiable reason for his actions.”

The court found Gidwani guilty under Section 12 of the Contempt of Court Act, 1971, and sentenced him to a week of simple imprisonment along with a fine of Rs 25,000. “In case of default, he would serve an additional day of simple imprisonment,” the court added.

However, a division bench later issued a stay on the single judge’s order, providing temporary relief to Gidwani.

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