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.