Central Bureau of Investigation Vs Chandra Nath Kayal (Calcutta High Court)
The Calcutta High Court examined a criminal revision filed by the Central Bureau of Investigation (CBI) challenging an order that discharged an Income Tax Officer from corruption charges under the Prevention of Corruption Act, 1988. The Special Court had discharged the accused on the ground that the sanction for prosecution was invalid and incapable of rectification.
The prosecution arose from a trap conducted on May 2, 2012, following a complaint alleging a demand of ₹2,000 for processing a tax refund. After investigation, a charge-sheet was filed under Sections 7 and 13(2) read with 13(1)(d) of the PC Act. The accused had been appointed as an Income Tax Officer by the Chief Commissioner of Income Tax (CCIT) on April 23, 2010, but the sanction for prosecution was granted by the Commissioner of Income Tax (CIT) on July 11, 2012.
After the trial had partially commenced, the accused sought discharge, contending that the CIT was subordinate to the appointing authority (CCIT) and therefore incompetent to grant sanction. The Special Court accepted this contention and discharged the accused. The CBI argued before the High Court that the CIT was competent under a departmental notification and that even if the sanction were defective, liberty should have been granted to obtain a fresh sanction. It also submitted that the withdrawal of general consent by the State of West Bengal under Section 6 of the DSPE Act would not affect the case as it was registered earlier.
