EMPLOYEES PROVIDENT FUND ORGANIZATION, REGIONAL OFFICE, DELHI (SOUTH) vs. PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI & ANR.
What did the High Court hold?
The Delhi High Court held that an order edified on non-existent or hallucinated citations is a nullity and amounts to fraud upon the justice delivery system. The Court noted that while an adjudicating authority's order may be founded on its own logic, it cannot be based on incorrect law or non-existent precedents. The High Court found that the practice of citing non-existing judgments is increasing and warrants strict action. Consequently, the Court set aside the impugned order dated 24.02.2026 passed by the CIT(A) and remanded the matter back to the Appellate Authority for a fresh decision in accordance with the law. Given that the author of the impugned order had retired, the Court decided not to initiate disciplinary action against him. The petitions were disposed of accordingly.
What were the facts?
The Employees Provident Fund Organization (EPFO), Regional Office, Delhi (South) filed two writ petitions before the Delhi High Court challenging an order dated 24.02.2026 passed by the Commissioner of Income Tax (Appeals) [CIT(A)]. The petitioner's challenge was based on the ground that the six judgments cited by the CIT(A) in its order did not exist. The High Court issued a notice to the author of the impugned order, Mr. Brij Lal Meena, ADDL./JCIT (A)-2, Jaipur, who had since retired. The Department, through its counsel, submitted that the retired officer, due to a heavy workload, had relied on his Inspector who furnished the citations, and these were inserted without verification. The officer filed an affidavit supporting this explanation.
What were the issues?
1. Whether the order passed by the CIT(A) dated 24.02.2026 is liable to be set aside on the ground that it relies on non-existent judgments, thereby vitiating the decision-making process under Section 250 of the Income Tax Act, 1961? Assessee (EPFO) argued that the CIT(A)'s order is a nullity and amounts to fraud upon the justice delivery system because it is based on fabricated or non-existent judicial precedents. They contended that reliance on such citations renders the entire reasoning flawed and unsustainable. Revenue (Principal Commissioner of Income Tax) explained that the reliance on non-existent judgments was an inadvertent error due to the workload of the retired officer and the incorrect submission of citations by his Inspector, without proper verification. They did not dispute the fact that the judgments did not exist but attributed it to human error.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
W.P.(C) 6049/2026 & W.P.(C) 6051/2026 Page 1 of 3 $~5 & 6 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6049/2026, CM APPL. 29798/2026 & CM APPL. 29799/2026 + W.P.(C) 6051/2026, CM APPL. 29804/2026 & CM APPL. 29805/2026 EMPLOYEES PROVIDENT FUND ORGANIZATION, REGIONAL OFFICE, DELHI (SOUTH) .....Petitioner Through: Mr. Rony Dominen John and Mr. Piyush Swami, Advocates. versus PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI & ANR. .....Respondents Through: Mr. Vipul Agrawal, JSC, Mr. Gooraang Ranjan, Ms. Harshita Kotra, Advocates along with Mr. Brij Lal Meena, JCIT (A)-2, Jaipur (Retd.). CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE RAJNEESH KUMAR GUPTA O R D E R % 17.07.2026 1. The instant writ petitions have been filed by the petitioner- Employees Provident Fund Organization, Regional Office, Delhi (South), an arm of the Union of India, challenging an order passed by another arm of the Union of India. The challenge is founded on a rather strange ground that the judgments which have been referred to by the Commissioner of Income Tax (Appeals) [hereinafter referred to as ‘CIT (A)’] in its order dated 24.02.2026 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:47:46
W.P.(C) 6049/2026 & W.P.(C) 6051/2026 Page 2 of 3 do not exist. 2. When the matter was listed for motion hearing on 04.05.2026, learned counsel for the petitioner invited the Court’s attention towards paragraph No. 6 of the impugned order and submitted that CIT (A) had relied upon six judgments to substantiate its reasoning and none of which actually existed. 3. Consequently, a notice was issued to the author of the impugned order, Mr. Brij Lal Meena, ADDL./JCIT (A)-2, Jaipur, seeking clarification/ response in relation to the source from which he has taken above citations. Our Legal Researchers inform that they have not been able to find the said judgments of the courts with the given titles. The judgment that the officer has mentioned are the following:- A. CIT v. Outstanding Industrial Enterprises, (2002) 256 ITR 466 (Del) B. CIT v. Orissa Corporation (P) Ltd., (2007) 7 SCC 229 C. CIT v. Jayachandran Textile Mills, (2019) 413 ITR 244 (SC) D. CIT v. Veerabhadrappa & Sons, (2000) 245 ITR 232 (SC) E. CIT v. Sree Meenakshi Mills Ltd., (2004) 267 ITR 337 (SC) F. CIT v. Oswal Agro Mills Ltd., (2008) 304 ITR 1 (SC) 4. We have called/summoned above books and to our utter surprise, none of the cited judgments exist. 5. An affidavit has been filed by Mr. Brij Lal Meena. Mr. Vipul Agrawal, learned Senior Standing Counsel for the Department, submitted that Mr. Meena who has since retired was having heavy workload, due to which he had relied upon his Inspector, who had furnished above citations, and he had used/inserted these citations, without verifying. The same plea has been taken in the affidavit, so filed. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:47:46
W.P.(C) 6049/2026 & W.P.(C) 6051/2026 Page 3 of 3 6. We have experienced that the practice of citing non-existing or hallucinated citations is increasing day by day. Any order which is edified on any order/judgment which does not exist, is a nullify and amounts to fraud upon the justice delivery system. The time has come, if an Authority or court is found citing or relying upon non-existent judgments, whether generated through artificial intelligence or self-generated, a strict action including a disciplinary action be taken. 7. An order passed by an adjudicating authority may well be founded on his own logic, reasoning or interpretation of the provisions. It is not necessary that every conclusion must flow from a judicial precedent or should be fortified by a judicial pronouncement. But an order based on an incorrect law is meant to be set aside. 8. We, therefore, set aside the impugned order dated 24.02.2026 passed by the CIT (A) and remand the matter back to the Appellate Authority for decision afresh, in accordance with law. 9. As the author of the impugned order has since retired from service, we do not wish to pass any direction for initiation of disciplinary action against him. 10. The petition is accordingly disposed of along with all pending applications. DINESH MEHTA, J. RAJNEESH KUMAR GUPTA, J. JULY 17, 2026/nd This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:47:46
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