The Allahabad High Court recently delivered a landmark judgment in the case of Prashant Chandra v. Harish Gidwani, CONTEMPT APPLICATION (CIVIL) No. 562 of 2016. The case revolved around allegations of contempt against Harish Gidwani, the former Deputy Commissioner of Income Tax, Range-II, Lucknow. The applicant, Prashant Chandra, was represented by advocates Mudit Agarwal, Anand Prakash Sinha, and Radhika Singh, while Harish Gidwani was defended by Neerav Chitravanshi, Kushagra Dikshit, and Manish Mishra. Judgment Delivered by Justice Irshad Ali.
Important Legal Issues
The primary legal issue in this case was the alleged willful and deliberate disobedience of a court order dated March 31, 2015. The order, issued by a Division Bench of the Allahabad High Court, quashed a notice for the assessment year 2012-13 due to jurisdictional errors and directed the deletion of any outstanding amount from the Income Tax Department’s web portal. Despite this directive, the outstanding amount remained on the portal for over seven years, adversely affecting the applicant’s reputation and financial standing.
Court’s Decision
Justice Irshad Ali found Harish Gidwani guilty of contempt under Section 12 of the Contempt of Courts Act, 1971. The court highlighted Gidwani’s actions as not only contemptuous but also malicious, with an intent to harass the applicant. The court emphasized that “disobedience of this Courtโs order strikes at the very root of the rule of law on which the judicial system rests,” underscoring the importance of adhering to judicial directives.
Key Observations by the Court
1. On Jurisdiction:
– The court noted that the judgment dated March 31, 2015, was not confined to a particular assessment year but established that the Income Tax Authority at Lucknow lacked jurisdiction over the applicant, who was assessed in New Delhi.
2. On Compliance:
– The court criticized the failure to delete the outstanding amount from the web portal, which persisted for seven years and seven months, despite the court’s clear directive.
3. On Willful Disobedience:
– The court concluded that the actions of Harish Gidwani were willful, deliberate, and intended to harass the applicant, warranting punishment.
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Penalty Imposed
The court imposed a fine of Rs. 25,000 and sentenced Harish Gidwani to one week of simple imprisonment. Gidwani was ordered to surrender before the Senior Registrar by 3:30 PM on August 9, 2024, to serve his sentence. In case of default, he would face an additional day of simple imprisonment.
