LETTER & SPIRIT vs. LITTER & SPIT

[Mr. Harish Chander Bhatia]

It reminds me of a phrase:

"One or two bites are allowed to every dog, if dog keeps on biting different view has to be taken"

The Department despite having been reprimanded, strictured, penalized and being labeled as ignominious in its atrocities, again raged the assessee with its self designed modus operandi in precipitous defiance of all the legislative laws of the land and not following the laws in its letter and spirit and more appalling is the re-action of parent body in glorification and defending the assessing officer by approaching the Jurisdictional High Court to satiate its self-esteem albeit UNSUCCESSFUL.

In recent case, the detail of which will be reproduced at the end of this sad and anguish write-up, the main question always comes to my mind that whether the assessing officer is a human being or not, visibly I may be wrong, if I decide that the assessing officer is not a human body, but practically I am correct, When me and all the professional and the taxpayers envisage that their act and activities of the assessing officers during the assessment proceedings and post assessment proceedings they not only yell but sting too and attempt to gulp their prey.

My professional colleagues could be able to define the Assessing officer in more ignoble way, Even the God would be little sympathetical with the assessee but the demon would not; the same is the situation here. Why the assessing officer acts in undue haste in torturing the assessee whereas if the assessee begs before him for a refund of any amount from small to big he turns deaf ear but blind eyes too and cites many reasons or probably not allow the assessee to speak to him. Why this dual character, Why no efforts in refunding the collected amount of tax now lying without any authority of law. After all income tax department is neither the property of tax officials nor the inherited business of them, then why consider themselves as Jagirdar of the department and act so.

They have no rules to follow and when time comes to abide the law in its letter and spirit they litter and spit in shameless manner in absolute defiance of the same without and fear but with fervor

If the assessing officers syndicate is determined to act in defiance of the law either causing corruption on the assessee or atrocities or both, Then why the law, It should be declared a tax assessment shop and those are honest should be divested from these of work as a punishment , so let the demon rule and jungle raaj prevails blatantly.

How can we dream of an Honest CBDT and its family remains a dream, which is too difficult to imagine even and forget about its being practicable. I have read in tax journals and heard from our seniors about the misdeed of assessing officers but nothing seems to be improving and generations will pass on but incorrigible remains incorrigible.

रखिये उसे लपेटिये या काटते रहिये,

करदाता कपड़े का एक थान होता है।

अधिकारी के लिए निर्धारण खुशी की बात सही,

करदाता की आबरू का इम्तिहान होता है।

 DENIAL OF EXEMPTION BY INVOKING AMENDED PROVISIONS OF SECTION 2(15) OF THE ACT

The activities of Maharashtra Housing and Area Development Authority are held not be the activities of public welfare and general public utility and while denial exemption u/s section 11 of the Act imposed a tax of Rs: 159.84 crores by invoking the amended provision of section 2(15) of the Act.

AO’s action of recovering outstanding taxes without affording reasonable time to take remedial steps is a misuse of powers and a gross violation of the directions laid down by the Courts.

The assessee received the order of the CIT (A) on 16.11.2013. It filed an appeal before the Tribunal on 18.11.2013 that was the next working day. The assessee also filed an application before the Tribunal requesting stay of demand. The said application was fixed for hearing on 22.11.2013. However, the AO, without awaiting the outcome of the stay application, not only attached the assessee’s bank account u/s 226(3) on 18.11.2013 but also swept out Rs. 159.84 crores.

The assessee argued before the Tribunal that the coercive action of the AO was wrong because (i) the AO had taken coercive action before the expiry of time of filing the appeal against the order of the CIT (A), (ii) the action was taken even prior to the disposal of the stay application by the Tribunal and (iii) no prior notice was given to the assessee before taking the recovery action u/s 226(3). HELD by the Tribunal:

The action of the AO in recovering the outstanding without affording the assessee minimum reasonable time to take remedial steps is a misuse of powers and a gross violation of the directions laid down by the Courts as well as the basic rule of law and principles of natural justice. Accordingly, we direct the Revenue to refund the entire amount of Rs. 159.84 crores to the assessee within 10 days from the receipt of this order (Mahindra & Mahindra Ltd UOI [1992 (4) TMI 42 - HIGH COURT OF JUDICATURE AT BOMBAY]), Mahindra & Mahindra W.P. 2164/2007 [2007 (4) TMI 132 - HIGH COURT, BOMBAY],  UTI Mutual Fund [ 2012 (3) TMI 333 - BOMBAY HIGH COURT], RPG Enterprises [2000 (7) TMI 919 - ITAT MUMBAI] & Maharashtra State Electricity Board Versus Joint Commissioner of Income-tax - 2001 (3) TMI 1011 - ITAT MUMBAI, M/s Maharashtra Housing & Area Development Authority Versus Addl. DIT(E) I (1), Mumbai - 2013 (11) TMI 1485 - ITAT MUMBAI, The Director Of Income Tax (Exemption) Versus The Income Tax Appellate Tribunal, The Maharashtra Housing And Area Development Authority - 2014 (2) TMI 271 - BOMBAY HIGH COURT followed) .

The department filed a Writ Petition to challenge the said order of the Tribunal.  High Court dismissed Petition.

M/s Maharashtra Housing & Area Development Authority Versus Addl. DIT(E) I (1), Mumbai - 2013 (11) TMI 1485 - ITAT MUMBAI,

The Director Of Income Tax (Exemption) Versus The Income Tax Appellate Tribunal, The Maharashtra Housing And Area Development Authority - 2014 (2) TMI 271 - BOMBAY HIGH COURT