2026 (4) TMI 1196

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....SH SINHA, CHIEF JUSTICE 1. Heard appellant Mr. Rahul Gupta in person as well as Mr. Ajay Kumrani, learned counsel, appearing for respondent No.1 and Mr. Praveen Das, learned Additional Advocate General, appearing for the respondent Nos. 2 and 3. 2. This writ appeal is presented against the order dated 07.01.2026 (Rahul Gupta vs. Income Tax Department and others) passed by the learned Single Judge in WPC No. 3084 of 2025, whereby, the writ petition filed by appellant herein was dismissed by the learned Single Judge. 3. Brief facts of the case is that the appellant filed a writ petition invoking Articles 14, 19(1)(a), 21, 261 and 265 of the Constitution seeking enforcement of statutory duties against alleged tax evasion based on judi....

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....recedents governing the field, thereby rendering it unsustainable in law. Learned Single Judge erroneously treated limitation under Section 148 of the Income Tax Act, 1961 as a complete bar, ignoring the settled position that reassessment proceedings are distinct from and do not control investigation, penalty, or prosecution under Chapters XXI and XXII of the Act. It is well established through authoritative pronouncements such as Kranti Associates Pvt. Ltd. v. Masood Ahmed Khan, (2010) 9 SCC 496, P. Jayappan v. S.K. Perumal, (1984) 149 ITR 696, and K.C. Builders v. ACIT, (2004) 265 ITR 562 (SC) that prosecution for tax evasion is independent of assessment proceedings and can proceed notwithstanding their initiation or limitation, particula....

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....Auditor General v. K.S. Jagannathan, (1986) 2 SCC 679. The failure to act despite credible material, coupled with lack of inter-agency coordination, is arbitrary and violative of Articles 14, 21, 261 and 265 of the Constitution. The Learned Single Judge further erred in relegating the Appellant to alternate remedies, ignoring that the issue pertains to protection of public revenue and enforcement of statutory obligations, and in disregarding binding directions such as in RBANMS Educational Institution v. B. Gunashekar, 2025 INSC 490 mandating action on high-value cash transactions, thereby permitting continuation of economic offences and causing ongoing loss to the public exchequer. 5. On the other hand, learned counsel for appearing for....