Concerned over the CBDT panel’s proposal to allow reopening of tax filings of the past 16 years, experts and lawyers said it would only result in harassment of assessees without yielding any substantial gains to the exchequer.
At present, taxmen can reopen cases of suspected assessees of the past six years only.
CA Dev Kumar Kothari Said on the Proposal as follows:-
It seems that purpose of this step is to unearth black money lying in foreign banks however, I am afraid that real persons holding large black money may not be caught rather the revenue authorities will find it handy tool for harassing other assesses who have been paying regular taxes.
There is need of provisions to check specifically targeted tax evader. In fact the target should be to unearth ill-gotten and accumulated money by illegal means.
Businessman should not be target because if at all they have black money they have earned it by legal means and hard work and are using money productively. The money lying undisclosed in foreign banks is illgotten, illegal, and in fact theft of national resources. To bring back that money scheme to clean all sins scheme is required under which a payment of 50% cleaning fees paid to government should clean all sins of the person concerned without any question being asked and without attaching any stigma for future. “When amnesty can be granted to criminals to bring them in social stream and to allow them live as good citizen, why should not we allow ill-gotten money to become part of normal economy on payment of 50% of such money.”
The scheme should be such that other people are not able to make misuse of the same.
In our opinion Re-Opening up to 16 Years is too long period and any such attempt by the government will result in undure haressment of the Assessee.
I am of the opinion that the move would only create chaotic situation. Take a case where a tax payer who invested in a vacant site say, 12 years ago. He might have debited his capital account and would not be there in the balance sheet now. If he transfers the same the AO will not just stop with capital gain tax but might try to tax the purchase price of land as well by reopening the assessment.
A better alternative would be to amend sections 69,69A and 69B to include funds held outside India including bank balances and deposits and investments outside India. Then taxpayers of general category would not be affected and the proposal for extending to 16 years could also be shelved.In result all overseas deposits and investments would be taxable on deemed basis as income of the year of detection.
NORMALLY ACCOUNT RECORDS ARE KEPT FOR 8 YEARS ONLY. THEN HOW WILL IT BE POSSIBLE FOR AN ASSESSEE TO PRODUCE RECORDS AND VOUCHERS OLDER THAN 8 YEARS. MAY THE ALMIGHTY GIVE GOOD SENSE TO THE LAW MAKERS. WHAT ELSE WE CAN HOPE?
If the said amendment applies rationally the very judgments of various Hon’ble High Courts would there be infruqtuous as the gist of the judgments says – if the process is continued by the revenue the litigation would be endless and an assessee would never get relieved from this endless process.
So, the revenue department should think twice before making such an amendment.
I suggest that the proposal for 16 years is big harassment to the tax payers. For small numbers of big black money holders (in international banks) the big numbers of small indians tax payers should not be harassed. To unearth these types of tax evaders this provision should be brought in in such a way that the section will be excercised by the department only in cases where the department has information with respect to the person of holding black money in overseas bank only. The action will be taken with the approval of at least three persons consisting of Chief Commissioner,CBDT highest authority and RBI governer so that a normal Indian tax payer should not get harassment. Further the reason should be openable under RTI Act so that if by collusion of these three persons if one get harassment the harassed person have an option to get remidal action by approaching supreme Court only directly.
Yet another step by Govt to enhance bureaucracy, corruption and harassment of persons who pay their taxes.
Time will come when many of tax payers will think that It is better not to pay tax as Hasan Ali who has not paid 50000 Crore as tax is in Good state.
Govt is looting us for their own benefits sake, bureaucrats, kasab, Pension of Bloody corrupt govt employees who do not work, Swiss Bank etc……………..
If you want to live in India do not follow any law.
PRESENTLY ASSESSING OFFICER IS NOT ABLE TO COMPLETE THE ASSESSMENT IN CASES WHERE THE CASES ARE OPENED OF LAST 6 YEARS, HOW IT WILL BE POSSIABLE FOR HIM TO COMPLETE THE ASSESSMENT OF 16 YEARS. IN MOST OF THE CASES A.O. MAKES HUGE ADDITTION ON ESTIMATED BASIS WITH OUT PROPER WORKING, GOD KNOWS FOR WHAT REASON?