Supreme Court Fines Income Tax Department ₹2 Lakh for Harassing Taxpayer

The Supreme Court has imposed a ₹2 lakh fine on the Income Tax Department for disregarding its own circulars and harassing taxpayers.

The court condemned the department’s actions as "high-handed" and contrary to its duty to act fairly and in accordance with the law. The case involved an assessee who was denied the benefit of a circular meant to reduce litigation.

The court directed the department to deposit the fine with the Supreme Court Legal Services Committee and ensure strict compliance with its directives in the future.

[Vijay Krishnaswami @ Krishnaswami Vijayakumar v The Deputy Director of IT]