Page 13 - Banking Fiannce March 2018

LEGAL UPDATE

LEGAL

CASES
CASES
CASES
CASES
CASES

E-assessment of allscrutiny Trademark cancellation only after issue of notice
The Bombay High Court recently ruled that the registration of a trademark
cases, sans search
cannot be removed without giving notice to the company
The tax depart- owning it. Even if the owner of the trademark is neglient
ment had issued about applying for renewal of the trademark, the Regis-
instructions for trar of Trade Marks cannot unilaterally remove the name,
the current fi- the high court stated in its judgment, Kleenage Products
nancial year ask- Ltd vs Registrar of Trade Marks. It was emphasized in the
ing some of the field offices with lim- judgement that if the registered proprietor did not apply for renewal, the Reg-
ited internet bandwidth to conduct istrar must notify him of the approaching expiry of the trademark. Prior notice
only 10% of the scrutiny with e-assess- is a mandatory requirement because loss of the trademark has serious conse-
ment, in cases where the deadline is quences for the company. The Registrar was directed to consider the company's
expiring on March 31. The Central application for renewal of the trademark.
Board of Direct Taxes will issue a list
of such stations shortly, it added. Gratuity can't be attached
As part of its drive to speed up as- The Calcutta High Court recently ruled that United Bank of India cannot attach
sessments and cut down on face-to- the gratuity payable to its employee for recovery of hous-
face interface between officers and ing loan sanctioned to him. Gratuity under the Payment
taxpayers, the government is moving of Gratuity Act had immunity and the bank can not ad-
to electronic assessment as part of just that amount for arrears of the housing loan. Uphold-
scrutiny of a limited number of re- ing the order of the single judge, the division bench
turns that are taken up. characterised the bank's action in depositing the amount
in a frozen account as "sharp practice" and deprecated it.
The instructions issued said that in
case of enquiries before assessment,
notices have to be issued electronically HUFs eligible for interest on PPF on negligency of
and need to be posted in the e-filing postal department
account. Assessees have been advised The postal authorities negligently received PPF deposits from HUFs and no in-
that online submissions have to be terest was paid after the maturity. IT resulted to sev-
made within office hours by the stipu- eral complaints before the Raipur district consumer fo-
lated date. Also mentioned by the rum, only to stand invalid. On appeal, the Chhattisgarh
CBDT that the facility for online sub- state commission ordered the postal authorities to pay
mission of documents will automati- the depositors the amounts with nine per cent interest.
cally close a week before the deadline The department appealed to the National Consumer
in cases which are time barred. Commission, which reduced the rate of interest to six per cent.

BANKING FINANCE | MARCH | 2018 | 13