• PAGE ONE
• INDEX
• HOME

`I-T commissioners driven by fear psychosis'

Our Bureau

CALCUTTA, Aug. 13

THE income-tax commissioners, unlike the members of the income-tax appellate tribunals, cannot take independent and objective decisions, as, more often than not, they are driven by a fear psychosis.

At a meeting on ``Cyber law, direct and indirect taxes'', organised by the All-India Federation of Tax Practitioners (Eastern Zone) here on Saturday, Mr. Justice Ashok Kumar Mathur, Chief Justice of the Calcutta High Court, in his inaugural address, urge d the I-T commissioners and assessment officers to shun the pedantic approach and be more practical by understanding the problems of the common man while filing the complicated I-T returns.

Mr. Justice Mathur said this was the reason why filing of references pertaining to tax matters before courts was on the increase.

Calling for further simplification of tax procedures, he pointed out that a sea-change will take place in the speedy disposal of cases once the cyber laws come into play. In this context, he cited the proposed amendments to the Evidence Act of 1872, whic h would permit admissibility of electronic documents (such as digital signatures) as evidence in courts, as significant. Presentation of duly authenticated copies of certificates, through electronic devices, may put an end to all the manipulations that a re now common with the certified copies of documents in courts.

Mr. Justice Mukul Gopal Mukherjee, Chairman, Human Rights Commission, West Bengal and former CJ of the Rajasthan High Court, said the various issues now plaguing taxation of e-commerce transactions are likely to cause an erosion of worldwide tax base, if not addressed judiciously.

Cautioning against the live issue of cyber frauds (such as fraudulent registration of domain names), Mr. Justice Mukherjee said e-commerce in this country was still in its infancy, and a cautious approach was imperative. He pointed out that laws should b e fair to both taxpayers as well as governments, and the tax incidence should be neutral and fair in the case of e-commerce transactions.

Dr. Debiprosad Pal, Senior Advocate of the Supreme Court, stated that the administration of tax laws should be such that confidence is created in the minds of the taxpayers. Citing the as-yet-unresolved question of conflict of interest between the taxpay er and the tax-gatherer, Dr. Pal said there was a strong need to bring the I-T commissionerates under the purview of the Law Ministry.

He described tax avoidance as a measure to cut down on tax liabilities by complying with the provisions of law (such as investments in LIC policies which provide a tax shield).

The AIFTP felicitated the immediate past president, Prof. Sukumar Bhattacharya, a noted tax practitioner and educationist.