JUDGMENT

V. KAMESWAR RAO, J.

1. This petition has been filed with the following prayers:-

“a. Issue an appropriate writ, direction or order quashing the Impugned Sanction Notices dated 10.02.2025 and 19.02.2025 issued by Respondent No.3

under Section 279(1) of the Income Tax Act, 1961 authorizing Respondent No. 4 to initiate prosecution against the Petitioner under Section 276C and 278E of the Income Tax Act, 1961;

b. Declare that Impugned Circular No. 5/2020 bearing file No. F. No.285/08/2014-IT (Inv. V)/712 dated 23.01.2020 issued by Respondent No. 2, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance is contrary to Article 14 of the Constitution of India and as such unconstitutional and non-est;

c. Issue an appropriate Writ, Order or direction under Article 226 of the Constitution of India quashing the Impugned Circular No. 5/2020 bearing file No. F.No. 285/08/2014-IT (Inv. V)/712 dated 23.01.2020 issued by Respondent No. 2, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance;

d. Pass any other order issuing any other appropriate writs, orders or directions as this Hon’ble Court deems fair and equitable in the present facts and circumstances.”

2. This petition assails orders dated 10.02.2025, 11.02.2025, and 19.02.2025 (impugned sanction orders hereafter) passed by the PCIT, Central-1, Delhi (PCIT) under Section 279(1) of the Income Tax Act, 1961 (the Act) authorising the DCIT, Central Circle-8, i.e., the Assessing Officer (AO) for initiating the prosecution and instituting a criminal complaint against the petitioner under Section 276C and 278E of the Act for the Assessment Years (AYs) 2011-12, 2012-13, 2014-15, 2017-18, 2019-20, 2020-21, and 2022-23. It is through this petition, the petitioner seeks to challenge the validity of Circular No.5/2020 dated 23.01.2020 (impugned circular) issued by the Central Board of Direct Taxes (CBDT).

3. Before dealing with the merits of the petition, it is pertinent to give a

brief factual background surrounding the present controversy. According to the petitioner, in February 2020 a search and seizure operation was carried out at her residence in Bhillai, Chhattisgarh and consequently, the AO initiated assessment proceedings and issued notices under Section 153C of the Act. Thereafter, on 02.12.2022, the petitioner was arrested by the Enforcement Directorate (ED) and on 16.01.2024, Economic Offences Wing (EOW) Chhattisgarh registered an FIR No.2/2024 against the petitioner and on 17.01.2024, the EOW registered a second FIR No.3/2024 against her. It was thereafter that the AO had completed assessment pertaining to the case of the petitioner vide assessment orders dated 30.03.2024 for AY 2011-12 to 2016-17, 2019-20 to 2022-23 and order dated 28.03.2024 for AY 2017-18.

4. Being aggrieved by the assessment orders, the petitioner filed appeals before the Commissioner of Income Tax (Appeals) [CIT(A)]. On 02.07.2024, a third FIR No.22/2024 was registered against the petitioner and subsequently, she was granted interim bail by the Supreme Court in relation to Enforcement Case Information Report (ECIR) No.9 vide order dated 25.09.2024. She was also granted default bail in relation to the third FIR by Special Court Raipur vide order dated 08.01.2025. It was thereafter, that PCIT vide the impugned orders authorised the AO for initiation of prosecution under Section 276C of the Act for the AYs 2011-12, 2012-13, 2014-15, 2015-16, 2017-18, 2019-20, 2020-21, and 2022-23.

5. Pursuant to the impugned orders, the respondent no.4 filed complaints under Section 223 of the Bhartiya Nagarik Suraksha Sanhita, 2023 (BNSS) before the Additional Chief Judicial Magistrate (Special Acts), Central, Tis

Hazari Courts, Delhi (ACJM) seeking a trial and conviction of the petitioner under Section 276C of the Act. As per the case of the petitioner, she was granted bail by the Supreme Court in relation to the second FIR as well, although, she contends that she was arrested ag