The unprecedented dismissal of 12 senior I-T officers without retirement benefits has created turmoil among the serving officers. They feel that some of the officers who are facing allegations or disciplinary action may take VRS, which will create a talent crunch in the Department.

On Monday, orders were issued by the Finance Ministry, in consultation with the Centre Board of Direct Taxes, for the compulsory retirement of 12 senior Indian Revenue Service (IRS) officers for corruption and professional misconduct. They were relieved of their duties by Tuesday afternoon.

Senior I-T officers told BusinessLine that those facing allegations, vigilance actions or adverse remarks in the Annual Confidential Report (ACR) could leave the I-T Department, availing extant VRS and join corporate tax practice, where their experience will count.

Good ACR is sacrosanct for any government employee but some of the I-T officers who were forced to retire had bad remarks in their reports. There is a constant fear among the fraternity that ACR may be misused by higher IRS cadre to victimise the juniors, who are not willing to act upon their whims and fancies. Cases of tarnishing the ACRs could also rise, the officers said.

Tax collection

The Department’s audit of I-T officers are also conducted at fixed intervals, which scrutinises actions of the officers for their efficiency in collecting the taxes. If the “so-called” tax losses in audits are found then they could face further actions from the higher authorities, the officers said.

The officers pointed out that tax assessment and collection is a combined activity of many hands but primarily led by the directly appointed IRS officers, who are supported by promotee IRS. But such a summary dismissal from service will also create a rift between the two inter-departmental cadres due to the perceived unstable position of direct IRS officers. The promotee IRS officers may not fully support all the actions of their bosses. In serious tax evasion cases, the files also have to be signed by the promotee IRS officers.

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