Kewal Nirmal Kalsi Salutory Trust V. The Union of India and The Secretary to the Government of India, Ministry of Finance, Department of Revenue and The Chairman Central Board of Direct Taxes, Government of India and The Director General of Tax (Vigilance) and The Principal Chief Commissioner of Income Tax, NER and The Principal Director of Income Tax (Investigation) and The Principal Secretary to the Government of India, Prime Minister's Office and The Joint Secretary, Department of Administrative Reforms and Public Grievance and The Secretary (Revenue) to the Government of India, Department of Revenue, Ministry of Finance and The Director General of Income Tax (Investigation), Government of India and The State of Assam and The Deputy Commissioner, Kamrup(M) and The Sub Registrar, Kamrup(M)

PIL/23/2022

AI Insights

The case involves the Kewal Nirmal Kalsi Salutory Trust, represented by its legal service provider, Ms. Priyanka Das, who filed a PIL against the Union of India and several other respondents, including various tax and revenue authorities. The PIL sought a writ of mandamus and/or certiorari to ensure strict adherence to the Income Tax Act, particularly sections 269 ST, 271 DA, and 285 BA, which govern the conduct of financial transactions and penalties for violations. The petitioner argued that there was a widespread non-compliance with these provisions by public authorities in Assam, particularly concerning transactions exceeding Rs. 2 Lakhs without proper banking instruments, which should attract penalties under section 271 DA. The court, however, directed the petitioner to approach the competent authority under the Income Tax Act for such grievances, rather than seeking redress through a PIL.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 811320 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 20-06-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K GOGOI
• Assessee Lawyers: PRIYANKA DAS
• Keywords: Certiorari; Certiorari; Income Tax Act; Mandamus; Penalty; Public Interest Litigation; Transaction Limit
• Section: 269 ST; 271 DA; 285 BA

Judgement Text

"Page No.# 1/5 GAHC010045752022 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : PIL/23/2022 KEWAL NIRMAL KALSI SALUTORY TRUST HOUSE NO. 5, 18 EAST BYE-LANE, SUNDARPUR, R.G. BARUAH ROAD, GUWAHATI-781005, REPRESENTED BY ITS SERVICE PROVIDER (LEGAL) MS. PRIYANKA DAS, AGED ABOUT 27 YEARS, D/O RANJIT DAS, GANDHI BASTI, SILPUKHURI, GUWAHATI-781003 VERSUS THE UNION OF INDIA AND 11 ORS REPRESENTED BY THE SECRETARY TOT HE GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NEHRU PLACE, NEW DELHI-110019 2:THE CHAIRMAN CENTRAL BOARD OF DIRECT TAXES GOVERNMENT OF INDIA NORTH BLOCK CENTRAL SECRETARIAT BUILDING NEW DELHI-110001 3:THE DIRECTOR GENERAL OF TAX (VIGILANCE) 2ND FLOOR JAWAHARLAL NEHRU STADIUM NEW DELHI-110003 4:THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX NER 1ST FLOOR AAYAKAR BHAWAN G.S. ROAD GUWAHATI-781005 ASSAM Page No.# 2/5 5:THE PRINCIPAL DIRECTOR OF INCOME TAX (INVESTIGATION) AAYAKAR BHAWAN CHRISTIAN BASTI G.S. ROAD GUWAHATI-781005 6:THE PRINCIPAL SECRETARY TO THE GOVERNMENT OF INDIA PRIME MINISTERS OFFICE SOUTH BLOCK RAISENA HILLS NEW DELHI-110011 7:THE JOINT SECRETARY DEPARTMENT OF ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCE (AR AND PG) SARDAR PATEL BHAWAN PARLIAMENT STREET NEW DELHI-110001 8:THE SECRETARY (REVENUE) TO THE GOVERNMENT OF INDIA DEPARTMENT OF REVENUE MINISTRY FINANCE NORTH BLOCK NEW DELHI-110001 9:THE DIRECTOR GENERAL OF INCOME TAX (INVESTIGATION) GOVT. OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE AYAKAR BHAWAN ANNEXE BUILDING 3RD FLOOR P-13 CHOWRINGHEE SQUARE KOLKATA-700069 10:THE STATE OF ASSAM REPRESENTED BY THE COMMISSIONER-CUM-SECRETARY (FINANCE DEPARTMENT) ASSAM SECRETARIAT CM BLOCK SECOND FLOOR DISPUR GUWAHATI ASSAM-781006 11:THE DEPUTY COMMISSIONER Page No.# 3/5 KAMRUP(M) PRESIDING THE OFFICE OF THE DEPUTY COMMISSIONER KAMRUP(M) PAN BAZAR KACHARI GUWAHATI-781001 ASSAM 12:THE SUB REGISTRAR KAMRUP(M) GOVERNMENT OF ASSAM DEPARTMENT OF LAND AND DISASTER MANAGEMENT (REGISTRATION) OFFICE OF THE DEPUTY COMMISSIONER PAN BAZAR GUWAHATI-781001 (ASSAM Advocate for the Petitioner : MR. D GOSWAMI Advocate for the Respondent : ASSTT.S.G.I. BEFORE HON'BLE THE CHIEF JUSTICE(ACTING) HONOURABLE MR. JUSTICE SOUMITRA SAIKIA ORDER Date : 20-06-2022 [N. Kotiswar Singh, CJ (Acting)] Heard Mr. D. Goswami, learned counsel for the petitioner. Also heard Mr. K. Gogoi, learned CGC for the Income Tax Department. The prayer made in this PIL is as follows:- “In the premises aforesaid, it is, therefore, respectfully prayed that Your Lordships may be pleased to issue a Rule, call for the entire records and issue a Rule calling upon the to show cause as to why writ in the Respondents nature of mandamus and/or certiorari or any other writ should not be issued to the Respondent authorities thereby directing them for strict adherence to the prevailing laws under the Income Tax Act and the other related laws and schemes and also take Page No.# 4/5 stringent action against all such persons who are responsible implementation and following of the same but have remained silent and/or have themselves violated the prevailing laws and upon perusing the causes shown and hearing the parties, be pleased to make the Rule absolute by directing them for strict adherence to the prevailing laws under the Income Tax Act and the other related laws and schemes and also take stringent action against all such persons who are responsible implementation and following of the same but have remained silent and/ or have themselves violated the prevailing laws and/or pass such other order/ orders as Your Lordships may deem fit and proper. It has been submitted that many of the public authorities are not taking necessary steps in terms of Sections 269 ST, 271 DA and 285 BA of the Income Tax Act. Section 269 ST of Income Tax Act prohibits any transaction above Rs. 2 Lakhs, otherwise by account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account operating transaction. It is further provided under Section 271 DA that if a person receives any amount in contravention of the provisions of Section 269 ST, he shall be liable to pay by way of penalty, a sum equal to the provides amount inter alia. It is the case of the petitioner that it has been found that many of the transactions which are occurring in the State are in violation of Section 269 ST and the authorities concerned are not levying the penalty as provided under Section 271 DA. Accordingly, the present PIL has been filed seeking appropriate Page No.# 5/5 directions to the authorities concerned. We are of the view that if any of the provisions of the Income Tax Act is not followed by any authorities, the petitioner is at liberty to approach the competent authority as provided under the Act rather than approaching this Court by way of PIL at the first instance. Accordingly, the present PIL is closed with liberty to the petitioner to approach the competent forum under the Income Tax Act to highlight any violation of the provisions of the Act. In view of the above observations, the present PIL stands closed. JUDGE CHIEF JUSTICE (ACTING) Comparing Assistant "