INCOME TAX APPELLATE TRIBUNAL THROUGH PRESIDENT versus V.K. AGARWAL AND ANR.

Citation: [1998] SUPP. 2 S.C.R. 707 · Decided: 17-11-1998 · Supreme Court of India · Bench: SUJATA V. MANOHAR · Disposal: Case Allowed

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Judgment (excerpt)

INCOME TAX APPELLATE TRIBUNAL THROUGH PRESIDENT 
A 
v. 
V.K. AGARWAL AND ANR. 
NOVEMBER 17, 1998 
[SUJATA V. MANOHAR AND G.B. PATTANAIK, JJ.] 
B 
Contempt of Courts Act, 1971 : Sections 2(1) and 3. 
Income Tax Appellate Tribunal-Draft order in favour of assessee by 
one of the two Members-Contrary view in the matter by another Member- C 
Discussion between the members-Order in favour of Revenue signed by both 
the members-Law Secretary to Govemment of India-On receipt of 
pseudonymous complaint-Letter to President of Tribunal questioning the 
judicial impropriety of two contradictory orders-Demand for enquiry and 
report within 10 days-Second letter threatening that adverse inference 
would be drawn if report not sent immediately-Held, amounted to interference D 
with the administration of justice and tends to undermine confidence in the 
functioning of Tribunal-Amounts to contempt of court. 
Constitution of India, 1950 : Articles 32 and 129-Power of Supreme 
Court to punish for contempt-Held, Supreme Court has inherent power to E 
punish for contempt of itself and also for contempt of subordinate/inferior 
Courts. 
Income Tax Appellate Tribunal-Interference with administration of 
justice-Suo moto cognizance of contempt by Supreme Court-No scope for 
appeal by contemner-Whether valid ground for not exercising that power F 
to punish for contempt? Held, No. 
Income Tax Appellate Tribunal-Power of supervision and control of 
Department of Legal Affairs-Nature of-Held, only administrative supervision 
and control and does not extend to controlling or questioning judicial 
decision of the Tribunal. 
G 
Income Tax Appellate Tribunal Rules, 1963 : Rules 34 and 35-
Procedure to be followed while delivering order-Laid down. 
Anonymous and Pseudonymous complaint-Procedure to deal with-
Held, governed Memorandum dated 29.9.1992 issued by Department of H 
707 
\ 
708 
SUPREME COURT REPORTS (1998] SUPP. 2 S.C.R. 
A Personnel and Training, Government of India. 
B 
Words and Phrases: 
'Criminal contempt'-Meaning of in the context of section 2(c) of 
Contempt of Courts Act, 1971. 
'Including the power to punish for contempt of itself -Meaning and 
scope of in the context of Article 129 of the Constitution of India. 
A Bench oflncome Tax Appellate Tribunal consisting of two members 
heard and decided a matter pending before it in favour of Revenue. In the said 
C matter, initially the judicial member prepared a draft order in favour of 
assessee and signed it However, since the Accountant member took a contrary 
view, they had a discussion and in the end the judicial member agreed with 
the views taken by Accountant member. Thus an order in favour of Revenue 
signed by both the members was passed and copies of said order sent to the 
D parties. 
Respondent No. 1 the law secretary on receipt of an pseudonymous 
complaint, wrote a letter to the applicant, President of the Tribunal stating 
that. passing two contradictory orders disclosed judicial impropriety and 
asked to send his report within 10 days. Applicant sent a copy of the above 
E letter to both the members and invited their comments. In reply, both the 
members pointed out that there are no two orders passed and the only order 
was the order which was only signed by both the members. But before the 
applicant could send his report, the law secretary wrote another letter 
threatening the applicant that adverse inference would be drawn if the report 
was not sent in time. The applicant treating the said two letters as serious 
F interference with the administration of justice preferred the present 
application for issuing contempt notice against respondent No. 1. 
Allowing the contempt petition, this Court 
HELD : 1. Respondent No. 1 by writing the two letters has travelled far 
G beyond exercising administrative control over the Tribunal and has tried to 
influence or question the decision making process of the Tribunal. Thus he 
is guilty of contempt of court. [725-F] 
2. Whenever an act adversely affects the administration of justice or 
tends to impede its course, or shake public confidence in a judicial institution, 
H the power of contempt can be exercised to uphold the dignity of the court of 
• 
A 
I.T. APPEL. TRI. THROUGH PRES. v. V.K. AGARWAL 
709 
law and protect its proper functioning, The definition of criminal contempt A 
under Section 2(c) of Contempt of Courts Act, 1971, therefore, refers not 
merely to publication by words, signs etc. but includes the doing 

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