Supreme Court Condemns Income Tax Department's Decade-Long Harassment of IRS Officer
The Supreme Court of India has delivered a scathing rebuke to the income tax department and a former revenue secretary, who currently serves as the governor of the Reserve Bank of India, for what it termed as systematic harassment of an Army officer turned Indian Revenue Services bureaucrat over more than ten years. In a significant ruling, the apex court has imposed a substantial cost of ₹5 lakh on the authorities, payable to the aggrieved officer, Pramod Bajaj.
From Army Captain to IRS Commissioner: Bajaj's Distinguished Career
Pramod Bajaj's professional journey is marked by remarkable resilience and achievement. Commissioned as an officer in the Indian Army in 1980, his military career was cut short due to a disability sustained while serving as a Captain during an operation. Undeterred, Bajaj cracked the highly competitive civil services examination and was appointed to the Indian Revenue Services in 1990. Through dedication and hard work, he rose through the ranks to become the Commissioner of Income Tax in January 2012.
Judicial Bench's Strong Observations on Departmental Malpractices
A bench comprising Justices Vikram Nath and Sandeep Mehta expressed deep concern over the treatment meted out to Bajaj. The court noted that despite his promotion to Commissioner and the imminent probability of further advancement, a trumped-up memorandum was issued against him, which was ultimately dropped. However, leveraging this subterfuge, the petitioner was compulsorily retired from service.
The bench highlighted that the order of compulsory retirement was subsequently set aside by the Supreme Court in an earlier round of litigation on March 3, 2023. That judgment had recorded strong observations on the high-handed and mala fide manner in which the departmental action had been undertaken.
Reference to Former Revenue Secretary and Sensitive Position
In a carefully worded section of the judgment, the bench referred to the former revenue secretary, now RBI governor, as 'the Officer' without explicitly naming him. The court stated, "Though considering the fact that 'the Officer' now holds a sensitive position, we refrain from making any observations on his role in the entire sequence of events leading to the present litigation." This nuanced approach underscores the judiciary's awareness of the individual's current significant role while addressing the grievances.
Chronology of Harassment and Legal Battles
Bajaj's troubles with the income tax department commenced in 2014 when he applied for appointment to the post of Member (Accountant) of the Income Tax Appellate Tribunal. The Search Cum Selection Committee, headed by a sitting Supreme Court judge, placed him at All India Rank One. Despite this top ranking, the department refused to appoint him, citing ongoing litigation with his estranged wife.
- Following directions from the Central Administrative Tribunal, the department's objections were presented before the SCSC, which rejected them and reaffirmed Bajaj's All India Rank One status.
- Appeals against the CAT order were dismissed by the Allahabad High Court and subsequently by the Supreme Court.
- Persisting in its stance, the department initiated a vigilance inquiry against Bajaj and placed him on the list of officers with suspected integrity.
- This move was also set aside by the CAT, with appeals against this order being dismissed by the High Court.
- Subsequently, the department initiated departmental proceedings and compulsorily retired Bajaj, even though he had been empanelled by the Appointments Committee of the Cabinet for the post of joint secretary.
Supreme Court's Intervention and Contempt Proceedings
In a hard-hitting judgment on March 3, 2023, the Supreme Court quashed all proceedings against Bajaj and set aside the order of compulsory retirement. Not satisfied with the compliance, Bajaj moved a contempt petition against the revenue secretary in 2024. The court summoned the secretary for deliberate defiance of its orders. On August 4, 2024, the revenue secretary tendered an unconditional apology, following which the court directed the release of all consequential benefits to Bajaj.
Court's Directives for Fresh Selection Process
In addition to imposing the ₹5 lakh cost, the Supreme Court bench has directed a fresh selection of members for the Income Tax Appellate Tribunal from among candidates that will include Pramod Bajaj. Although he was not appointed as an ITAT member previously, Bajaj has now been called for a fresh interview before the SCSC, which is headed by a sitting Supreme Court judge. This directive aims to ensure fairness and rectify the injustices faced by the officer.
This landmark judgment underscores the judiciary's commitment to protecting civil servants from arbitrary and vindictive actions, reinforcing the principles of justice and administrative integrity within India's governance framework.
