Union finance minister Arun Jaitley on Thursday took a serious view of the resolution passed by some income-tax officials (from the Indian Revenue Service) against alleged interferences by the Departm
Union finance minister Arun Jaitley on Thursday took a serious view of the resolution passed by some income-tax officials (from the Indian Revenue Service) against alleged interferences by the Department of Revenue.
“This is an act of insubordination. Officers indulging in acts of indiscipline would be subject to conduct rules,” said Mr Jaitley. He said no department of the government has absolute autonomy. “It has to serve the larger goal of the government. The supervisory powers of the next higher authority ensure there is no misuse of power by anyone in the government,” said Mr Jaitley.
The department of revenue is currently headed by Mr Hasmukh Adhia, a Gujarat-cadre IAS officer seen by many as a powerful bureaucrat in the Modi government. According to reports, some of the most senior officers assembled in Mumbai last week to discuss the revenue department’s alleged interference in “operational matters”, saying it was hurting the morale of I-T officials.
Mumbai accounts for one third of India’s direct tax collection.
In the resolution passed by them they charged the revenue department with undermining the autonomy of the Central Board of Direct Taxes (CBDT). The resolution followed a case pertaining to an assessment order passed by tax officials on March 30 in which a demand of Rs 10,000 crore was raised against State Bank of India and it was asked to pay the dues the same day, said finance ministry sources.
It was found that income-tax officials had unfairly slapped interest of Rs 5,800 crore on SBI for paying advance tax that was less than what was due, said sources. The government finds this to be a clear example of how income-tax officers raise their revenue collection achievements for the year. The revenue department took a serious view of this and asked CBDT to initiate action against those responsible, mainly because this time the government had made it very clear to all field functionaries that no such unfair means were to be used to jack up revenue achievements, sources said.
This matter comes to light when the government is going all out to ensure that the amnesty scheme launched last month for domestic black money holders succeeds.
