2014 (9) TMI 1260 - HC - Income Tax

Interim stay of the operation of the Departmental Promotion Committee (DPC) recommendations for promotion to the post of Principal Commissioner of Income Tax - HELD THAT - Though this Court would not wish to comment on the matter the merits of which are to be finally adjudicated at the same time the impugned order discloses that till date the DPC recommendations have not been acted upon. The order also states that the recommendations were in the process of being sent by the UPSC to the Central Government. Having regard to the nature of the matter and the specific circular of 23.05.2001 coupled with the fact that the Finance Act in the present instance endorsed the creation of the post of Principal Commissioner of Income Tax with effect from 01.06.2013 we are of the opinion that the Central Government should not take any final decision or at least go ahead and make any appointment pursuant to the recommendations of the impugned DPC during the pendency of the proceedings before the CAT At the same time we are of the opinion that having regard to the matter and the nature of the submissions made the CAT should endeavour to complete the hearing and render its decision at the earliest convenience preferably within eight weeks from today. Both the parties are directed to ensure full cooperation in this regard. The parties shall be present before the CAT on 09.10.2014 for directions. It is informed by the parties that the matter is listed before the CAT today (29.09.2014) afternoon at 02.30 PM. This order shall be communicated by the CAT to the petitioners as well as learned counsel for the respondents for appropriate action. W.P stands disposed of with the above directions.

Summary

Issues:
Challenge to interim order of Central Administrative Tribunal (CAT) denying stay of Departmental Promotion Committee (DPC) recommendations for promotion to Principal Commissioner of Income Tax. Allegation of error in constitution of DPC and participation of member's wife in the selection process.

Analysis:
The petition challenged an interim order of the CAT regarding the denial of a stay on the DPC recommendations for the promotion to the post of Principal Commissioner of Income Tax. The petitioner contended that the DPC recommendations were erroneous as they were based on a newly created post that required statutory amendments. The petitioner also raised concerns about the participation of a DPC member's wife in the selection process, citing a Circular of the Central Government (DOPT) dated 23.05.2001, emphasizing the disclosure of such relationships in advance for appropriate constitution of the Selection Committee.

The respondents argued that the petitioner did not present final arguments before the CAT and insisted on the consideration of the interim application. They claimed that the DPC member in question did not participate in discussions regarding his wife's candidature, as per the affidavit filed by the UPSC.

The High Court refrained from commenting on the merits of the case but directed that no final decision should be taken by the Central Government based on the DPC recommendations until the CAT proceedings were concluded. The Court emphasized the importance of adhering to the Circular of 2001 and noted that the Finance Act endorsed the creation of the post of Principal Commissioner of Income Tax. The Court urged the CAT to expedite the proceedings and make a decision within eight weeks, emphasizing cooperation from both parties. The matter was scheduled for further directions before the CAT, with the Court disposing of the petition with the outlined directions.