Page 17 - Banking Finance January 2018

LEGAL UPDATE

LEGAL

CASES
CASES
CASES
CASES
CASES

Interim Payment relief in SC wants special courts to deal with politicians

cheque bounce cases The Supreme Court has advocated creation of special courts to exclusively deal
with criminal cases relating to politicians, in the "interest of
The cabinet approved an amend- the nation". THE Supreme Court directed the Centre to place
ment to a before it a scheme in this regard, and asked the government
current law about the 1,581 cases involving MPs and MLAs, and details on
to allow for how many of them had been disposed of within one year as
payment of per its directions in 2014. It sought details of the number of
an interim cases that ended in conviction and acquittal, and criminal cases
compensa- lodged against politicians from 2014.
tion in cheque dishonour cases with
a view not to allow unscrupulous el- Supreme Court: Norms required for raids
ements holding payments, pending
The Supreme Court has questioned the behaviour of CBI investigators during raids
long trial, people familiar with the
matter said. and wondered how a senior bureaucrat arrested in a
graft case and his family members had committed
An amendment to the Negotiable In- suicide here last year. A bench of Justices Ranjan Gogoi
strument Act will allow a court to and L. Nageswara Rao said guidelines were needed
order for payment of an interim com- on searches and seizures carried out by the CBI. "We
pensation to those whose cheques would like the director of the CBI to look into the
have bounced due to dishonouring matter and file a response within four weeks," the court added. A former direc-
parties, a move aimed at promoting tor-general of corporate affairs, B.K. Bansal, and his son had committed suicide
a less cash economy. The amendment in September last year and his wife and daughter in July.
is likely to be introduced in the ongo-
ing winter session of Parliament. Slap higher tax rate on fraudulent returns: CBDT
Law minister Ravi Shankar Prasad The Central Board of Direct Taxes has asked the Income tax Officers to conduct
detailed scrutiny on cases where a taxpayer has filed a re-
said amendment to Negotiable In-
vised income tax return (ITR) post demonetisation and di-
struments Act, 1881 has been ap-
rected them to slap "higher tax rate" in instances where
proved. However, the people said
black money is detected. The CBDT has issued a 2 page in-
the amendment would enable the struction to all regional chiefs of the I-T department. "Un-
court to order interim compensation
accounted income so assessed in scrutiny assessment is liable to be taxed at a
to the payee of a cheque, a part of
higher rate without any set off losses, expenses etc. under section 115BBE (treat-
the cheque amount at the trial stage. ment of tax credits) of the I-T Act," the CBDT instructions said.
BANKING FINANCE | JANUARY | 2018 | 17

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