Now and often at the time of union budget speech being delivered by the Hon’ble Finance minister, it is the common for every Finance minister in last 30 years to reiterate the much heard assurance about the simplification of taxation laws particularly the Direct tax laws inspite of knowing well in the heart of hearts that Income Tax law stands far far apar from the other enactments both in status as well as in complexsities. Because it is nation and world economics in practical and rest of other segments of the financial world rove around it like the planets over the Sun. Moreover it is the only instrument in the hands of every nation to maintain the social equilibrium on income disparities which is the root cause of all revolution and social upheavals as history tells us. So it is neither a law nor a science or a philosophy in complete sense thus compelling great EINSTEIN to acknowledge that it is beyond his understanding and only philosophers may explain it. He was absolutely correct and accurate. Several times many national governments tried to simplify it but ended with being more complex because it is as Alien subject as like Great Shakespeare dramas. So the newly proposed DIRECT TAX CODE will be sheer copy and paste of current ACT as clearly manifested in the previous abortive attempt to replace the current ACT by the then UPA government but wisely left that futile attempt which is being taken again by the present dispensation.
What is the universal truth is that the Income Tax laws can not be simplified and are bound to be more complex with the passage of time with the cropping up new financial activities and new kind of tax evasion modes. However still the mandarins in revenue department are all-time committed good samaratians to reduce the volume of the Act by bringing multiple proceedings and penalties through the merger and introducing bunch of new sections to compensate the loss of abolished sections. For example in the Budget, 2021 both the survey and search proceedings were wisely brought within the ambit of sections 147/148 thus drastically reduction of procedural sections benefitting both the assesses and the departmental officers being already under the yoke of heavy work pressure. Only misnomer had been the power of reopening for 10 years which will cause immense harassment to the assesses and for that reason it is now reduced to 5 years. But such good job has been done away by introducing a herd of separate new sections in the search cases which are almost the copy, paste of the previous abrogated 153 sections, means old wine in a new bottle. So these wise folks in North Block has again made the Income tax more complex and heavier by the gift of these these new sections when 148 is the more than sufficient arsenal for the department to take care of revenue interest.
Now more confusion and litigations will prevail for keeping the survey under 148 while separating the search cases. In many cases both these two proceedings go hand in hand and any genuine tax evaders will have most convenient loopholes to dodge the department in the court and tribunal availing the said confusion. Another glaring instance is the introduction of several penalty provisions like 270A, 271AAC and many concerning the same issue of penalty for the concealed and undisclosed incomes for which 271(1)(c) is more than sufficient to take care of revenue interest. So here too the introduction of many unnecessary sections burdening both the assesses, consultants and officers who are already over burdened. So this kind of kidding experimentations by the bureaucrats in the North Block will be continued in future ceaselessly more and more through the New DIRECT TAX CODE in anvil.
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