Allahabad High Court Dismisses Challenge To Appointment Of Commissioners Of Income-Tax (Appeals)

“First and foremost, we find that the statute, i.e. the Act of 1961 is a self contained code which clearly vests jurisdiction with the Central Government to appoint such persons as it thinks fit to be income tax authorities as are specified in Section 116 of the Act. The income tax authorities clearly includes Commissioners of Income-tax (Appeals) and, therefore, the Central Government would have the jurisdiction to appoint an officer as Commissioner of Income-tax (Appeals). Officers belonging to the cadre of Indian Revenue Services have been appointed as Commissioner of Income-tax (Appeals)”, held the bench comprising of Justices Ashwani Kumar Mishra and Syed Aftab Husain Rizvi.

Petitioner challenged the assessment orders on the ground that no Commissioners of Income-tax (Appeals) have been appointed in terms of Section 116 and 117 of the Income Tax Act, 1961, inasmuch as the Act of 1961 contemplates creation of a separate cadre for Commissioners of Income-Tax (Appeals), which has so far not been constituted/created and therefore, the appointment of Commissioner of Income-Tax (Appeals) is not in accordance with law.

Reliance was placed on certain circulars of DOPT (Department of Personnel and Training) and the decision of the Supreme Court in Union of India & Ors. vs. N.P. Dhamania & Ors. (1995 Suppl (1) SCC 1) to contend that the post of Commissioner of Income-tax (Appeals) is equivalent to the post of Joint Secretary to the Government of India. Since the Appointment Committee of the Cabinet, the competent authority to appoint a Commissioner of Income-tax (Appeals), did not approve such an appointment, an appointment made by the Central Government is without an authority.

The Court held that the Act of 1961 does not contain any provision which requires that appointment of Commissioner of Income-Tax (Appeals) be made in a similar manner as the appointment of Joint Secretary to the Government of India. The two posts are separate and distinct. Provisions applicable for appointing Joint Secretary to the Government of India will not be applicable to the appointment of a Commissioner of Income-Tax (Appeals) merely because they are on the same pay scale.

While dismissing the petition, the Court observed that the arguments raised were academic in nature and the right of appeal of the petitioner was not being affected in any manner.

Case Title: Shweta Punj vs. Union of India and 4 others 2023 LiveLaw (AB) 224 [Writ Tax No. 521 of 2023]

Case Citation: 2023 LiveLaw (AB) 224

Counsel For Petitioner: Shashi Dhar Shukla, S.K. Srivastava

Counsel For Respondent: Gaurav Mahajan, N.C. Gupta