New Delhi, Jan. 31 -- Setting aside the rejection of an Indian Revenue Service Officer's candidature for becoming a member of the Income Tax Appellate Tribunal (ITAT), the Supreme Court on Friday held that the participation in the selection process, of the then revenue secretary and current Reserve Bank of India governor Sanjay Malhotra, referred to in the judgement only as "the officer" was in gross violation of the principles of natural justice.

A bench of justices Vikram Nath and Sandeep Mehta imposed a cost of Rs.5 lakh on the Union government for what it termed "rank procrastination" and conduct "bordering on vendetta". It said that Malhotra's presence as a member of a search-cum-Selection Committee (SCSC) in September 2024 gave ris...