#Banking Sector

The Himachal Pradesh High Court set aside a bank’s termination of a probationary employee, ruling that FIRs lodged during probation cannot be used as a ground for dismissal without a proper inquiry, as it breaches natural justice and Article 311. The decision safeguards probationers from stigmatic discharge pending criminal investigations.

The Bombay High Court has held that denying a government employee access to the Inquiry Officer’s report before imposing compulsory retirement violates the fundamental principles of natural justice. This ruling reinforces that procedural fairness in disciplinary actions is non-negotiable - especially in public sector employment where livelihoods hang in the balance.

The ITAT Bangalore ruled that public sector banks can claim CSR spending and 60% depreciation on ATMs as allowable business expenses under Section 36(1)(viii), thereby excluding them from Section 115JB book profit tax. This sets a critical precedent for the banking sector, affirming that regulatory compliance costs and infrastructure investments essential to modern banking operations qualify as genuine business expenditures, not disallowable non-business outlays.

The Punjab & Haryana High Court ruled that writ petitions challenging charge sheets are premature until a final order is passed, reinforcing that judicial intervention is unwarranted before exhausting departmental proceedings. This principle protects the integrity of disciplinary inquiries and prevents piecemeal litigation in service law matters.