Page 24 - Banking Finance December 2020

LEGAL UPDATE

removal from service, of a bank (ii) The appellate authority while en- Various case laws were cited on behalf
manager for sanctioning loan to hancing the punishment consid- of the appellants in support of the
his spouse in contravention of ser- ered charges which were not above contentions and it was pleaded
vice rule, is just and proper espe- proved in the enquiry. that the punishment of removal be set
cially when the cheque issued pur- (iii) The order of removal is unsustain- aside and the punishment imposed by
suant to the loan was not able as no personal hearing was the disciplinary authority be restored.
encashed?
given to the appellant by the ap-
2. Whether the enhancement of pellate authority before enhance- Court separates IT wings
punishment by the appellate au- ment of punishment. fighting each other
thority without giving a personal (iv) The order of enhancement of pun-
hearing to the appellant was in Recently, the Delhi High Court deliv-
ishment by the appellate author- ered a judgment in the case, Commis-
order?
ity is not just when it is not recom- sioner of Income Tax vs Authority for
3. Whether the appellant, having mended by the disciplinary author- Advance Ruling, Income Tax. CIT filed
filed appeal after the period of ity and that too in the appeal filed a writ petition claiming that it alone
limitation, can contend that his by the delinquent employee. had jurisdiction in deciding a tax mat-
appeal being time barred should
(v) Though loan was granted by the ter involving a foreign firm, Crocs Eu-
not have been considered by the appellant to his wife under a rope BV. It argued that its sister
appellate authority?
Scheme meant for educated unem- organisation, AAR, passed an order
4. Whether taking into account of un- ployed youth in violation of Service violating the jurisdictional bar under
proved charges in the departmen- Rules, the bank cheque issued by Section 245R(2) of the Income Tax Act.
tal enquiry by the appellate au- the appellant was not encashed, it Dismissing the petition, the court
thority while enhancing the pun- was only an attempt and no loss stated that the questions before the
ishment in appeal is in order? has been caused to the bank. two income tax authorities were differ-

Arguments on behalf of the appel- (vi) Therefore, impugned action of the ent. CIT was looking into discrepancy
lant respondent bank in enhancing the in the declared income during random
(i) The appeal should not have been punishment to removal is unjust, scrutiny. AAR was looking into royalty
considered by the appellate au- unwarranted, violative of statu- for use of intellectual property in the
thority as the same was time tory rights as also the principles of context of double taxation avoidance
barred. natural justice. treaty with the Netherlands. T

Date for availing direct tax dispute resolution scheme till Dec 31

The government has extended the last date for availing the direct tax dispute resolution scheme till December 31,
2020, the finance ministry notified. Taxpayers willing to settle their tax disputes under the Direct Tax Vivad se Vishwas
Act can file their declarations till December 31, and will be mandated to pay the settled tax amount by March 31,
2021, with a complete waiver of interest and penalty. After April 1, 2021, a 10% higher amount will have to be paid.
Further, where arrears relate to disputed interest or penalty only, then 25% of the amount is to be paid by March 31,
2021 and 30% after April 1, 2021. The extension has been provided "in order to provide further relief to the taxpay-
ers desirous of settling disputes under the scheme," the Central Board of Direct Taxes (CBDT) said.
Finance secretary Ajay Bhushan Pandey has asked tax officials to expedite the Scheme which, he said, is highly ben-
eficial to the taxpayers, after reviewing the progress made so far by the income tax department on the scheme in a
high level meeting. "We need to advance the Vivad se Vishwas Scheme with greater persuasion and perseverance
and must reach out to the taxpayers to facilitate all necessary handholding," he said.

24 | 2020 | DECEMBER | BANKING FINANCE