Fin Min warns tax officials on resolution against revenue dept

Taking a strong exception to some tax officials passing a resolution against directives issued by the Revenue Department, the Finance Ministry on Thursday termed it as "insubordination" and warned of disciplinary action.

In a strongly worded statement, the ministry said: "Finance Minister Arun Jaitley has taken a serious view of such a resolution by officers of organised Group 'A' service to advise the government on what role it should play.

"This is an act of insubordination. Officers indulging in acts of indiscipline would be subject to Conduct Rules." The statement followed reports that taxmen, including some of the senior-most officers, assembled in Mumbai last week to discuss Revenue Department's alleged interference in "operational matters" saying it was hurting the morale of Income Tax Department officials.

In the resolution passed by them, they charged the Revenue Department of undermining the autonomy of the Central Board of Direct Taxes (CBDT). The ministry said it learnt of the resolution passed by some officers of Indian Revenue Service (Income-tax) Mumbai Branch against the Department of Revenue through media reports.

"No Department of the Government has absolute autonomy. It has to serve the larger goal of the Government. The supervisory powers of next higher authority ensures that there is no misuse of power by anyone in the Government," it said. According to ministry sources, the resolution followed a case pertaining to an assessment order passed by tax official 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 on the same day.

The bank paid the tax and requested for rectification on the same day because the actual amount paid in advance tax was Rs 4,900 crore, while assessing officer had taken only Rs 1,200 crore. The assessing officer had therefore slapped an interest of Rs 5,800 crore on short payment of advance tax, sources said.

The assessing officer passed rectification order on March 31, 2016, sources said, adding that this was a clear case of how the officers of the Income Tax Department jacked up their achievement of revenue collection for the year.