Easy Office

The biggest litigant in the Government of India

Venkateswara Rao Sapare , Last updated: 16 August 2010  

The biggest litigant in the Government of India



It is my proud privilege to be part of this momentous occasion in the history of the Income Tax Department, which is celebrating 150 years of Income Tax in India. For the first time in the legislative history of India, a Bill for imposing duties on profits arising from property, professions, trades & offices was passed by the Legislative Council of India and received the assent of the Governor General on 24th July 1860.” Yes it is our Honorable Finance Minister, Shri. Pranab Mukherjee, felt so, , on 24th July, 2010, Venue: FICCI Auditorium, at 1530 hours.


I visited official web site of our “Income Tax Department,  Department of Revenue,  Ministry of Finance,  Government of India,  http://www.incometaxindia.gov.in/ , there is a  section “What is new”,  carrying on  an article called “Certificate of Merit given at the function held at New Delhi on celebration of 150 years of Income Tax in India.” Along with an attachment of EXCERPTS FROM THE SPEECH OF THE FINANCE MINISTER,  ON CELEBRATION OF 150 YEARS OF INCOME TAX”, wherein, following lines in Para 3, caught my sight for a while, please read:


3. Since 1860 to the present day, the Income Tax Department has traversed over three centuries and has witnessed the collapse of imperial rule in India and rise of a magnificent democratic economy.”  


Recollect the words “three centuries”, in the line.  


Is it “Three centuries”, since 1860 to the present day ( July 24th , 2010) ?



One area of concern is litigation with taxpayers.” Yes, the Finance Minister,  you are absolutely correct in your concern.  


How naïve is the Revenue Department in India till date,  is crystal clear in his further words that “Department is filing appeals in a routine manner without careful thought and examination leading to the Department earning the dubious distinction of being the biggest litigant in the Government of India. I have noticed that some of the appeals filed by the Department have been dismissed by the courts on account of gross delays. These issues require a relook at system of legal and judicial management.”. In the same article he also said that “A lot more remains to be done. The Department needs to reinvent itself to meet the challenges of the next 50 years.”


Foremost is, do not we need the Revenue Department to reinvent in presenting itself as a “tax facilitator  “by creating atmosphere conducive to voluntary payment?


Earlier tax administration enforced laws with intimidation”, the FM is again ruthlessly righteous.



“Every person shall be liable to pay income tax in respect of his total income for the financial year”. This is what Income Tax Act says.   


If an individual does not want to get in the trap of earning any income, remain passive,   he is not spared; he is liable to tax in the name of “Wealth Tax”, as his assets remain “Unproductive assets”. , in the case when the value of wealth exceeds the threshold limit of Rs.50 Crore.


If the very person makes every endeavour to  make productive his unproductive assets and fails to make profits, he will be liable to pay income tax in the name of “Minimum Alternate Tax.”   


Really, it is very interesting the way the direct taxes are extorted.



It makes one happy on reading line by line the “CITIZENS’ CHARTER, of Income Tax Department, 24th July, 2007. A Declaration of our commitment of Excellence in service to Taxpayers.”


The lines under the heading of “We aim” of the said “Citizen’s Charter”, need to be the basic responsibility of the Income Tax Department.


In the disguise of “We aim”, the department grapples for one or other excuse to harass the tax payers. The Revenue Department has projected itself to what it stands in the words of the FM as  that theDepartment is filing appeals in a routine manner without careful thought and examination leading to the Department earning the dubious distinction of being the biggest litigant in the Government of India.”


It is surprising to realize the missing accountability of the Revenue Department in its approach to the taxpayers, on reading the lines under the above heading “We aim”.  




Venkateswara Rao Sapare, Hyderabad – 500 008. Date 15.08.2010.     *





Join CCI Pro

Published by

Venkateswara Rao Sapare
Category Income Tax   Report

1 Likes   6778 Views


Related Articles