Saumya Chaurasia Vs Union of India & Ors. (Supreme Court of India)
The case concerns a challenge to sanction notices issued for initiating prosecution under the Income Tax Act, 1961 and the validity of certain CBDT circulars governing prosecution for tax evasion. The petitioner approached the Delhi High Court seeking quashing of sanction notices dated 10 February 2025 and 19 February 2025 issued under Section 279(1) of the Income Tax Act by the Principal Commissioner of Income Tax (PCIT). These notices authorised the Assessing Officer to initiate prosecution against the petitioner under Sections 276C and 278E of the Act for multiple assessment years. The petitioner also sought a declaration that CBDT Circular No. 5/2020 dated 23 January 2020 was unconstitutional and contrary to Article 14 of the Constitution.
The background of the dispute traces to a search and seizure operation conducted in February 2020 at the petitioner’s residence in Bhilai, Chhattisgarh. Following the search, assessment proceedings were initiated and notices were issued under Section 153C of the Act. The petitioner was subsequently arrested by the Enforcement Directorate in December 2022, and FIRs were registered by the Economic Offences Wing (EOW) in January 2024. Thereafter, the Assessing Officer passed assessment orders in March 2024 for several assessment years between AY 2011-12 and AY 2022-23.
