The author lashes out at the tax department for stonewalling the sincere efforts of the Court to reduce the arrears of tax matters by seeking repeated adjournments. He points out the problem areas and also outlines practical suggestions to help the department overcome its perennial drawbacks.

City of Mumbai contributes 40% of Direct Taxes revenue to Government of India. Also more than 40% of tax litigation is from the city of Mumbai. Significantly more than 70% appeals and references pending before the Bombay High Court are from the Revenue. It is on record that more than 4,000 tax appeals were filed late necessitating condonation of delay first before the matter can be taken up for hearing. To reduce the pendency of notices of motions filed by the tax department the Hon’ble Chief Justice of Bombay High Court allotted the work to eight tax benches. Tax Bar is of the considered view that by end of August at least all the notices of motions may be disposed of. More than 2,000 Tax appeals were pending for admission since 2002. To reduce the pendency, all tax appeals have been allotted to four tax benches. Tax Bar has made representation to the Hon’ble Chief Justice to have only one tax Bench dedicated to direct taxes and one tax bench for other taxes. Hon’ble Chief Justice has agreed with the view of the Tax Bar and constituted a tax bench only for hearing tax appeals and references and it is working very satisfactorily and is able to dispose large number of tax appeals and references. However, the Bar is of the considered view that instead of having four tax benches, if all pending notices of motion, tax appeals are transferred to one tax bench which is hearing the tax appeals and references, the disposal will accelerate and it will also help the tax administration to improve co-ordination and effective representation. This will prevent the embarrassing situation of different Benches taking different view in respect of identical issue.

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Judges want to be exempted from the rigours of the Right to Information Act (“RTI”) even for their non-judicial activities. And rightly so because the information that one can dig up on the honourables can be quite embarrassing to them.

CNN-IBN reported that it put in an RTI application which threw up interesting details of how judges extended their holidays, often for personal purposes, at Government expense.

It reported that Balakrishnan, soon after taking over as Chief Justice, was bitten by the travel bug. He made at least seven trips abroad in 2007 traveling First Class with his wife with the air fare alone costing over a whopping Rs 39 lakh.

Apparently, during his 11-day trip to Pretoria, South Africa in August 2007, the Chief Justice took the following route – Delhi, Dubai, Johannesburg, Nelspruit, Capetown, Johannesburg, Victoria Falls, where the judge finally didn’t go and returned via Dubai to Delhi.

The air fare alone cost Rs 5.70 lakh and did not include the stay, TA, DA or Entertainment Allowance. Entertainment Allowance itself was over Rs 80,000.

Predictably, Union Law Minister HR Bhardwaj reacted in a belligerent fashion “They also need comfort; they also need to go out. Why they should be deprived of it.” He was also sympathetic of the judges’ need to be accompanied by wives though government rules that say judges cannot be accompanied by wives on work tours. “How can you deprive the wife? You are a woman. You should understand,” Bhardwaj is reported as having lashed out at the CNN-IBN correspondent.

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The author laments that while the Income Tax Appellate Tribunal is globally recognized as one of the best tax tribunals for its independence and competence, its reputation at home is under a cloud owing to the allegations of corruption. He makes a fervent plea that the Bench and the Bar has to play a positive role to maintain the dignity, sanctity and integrety of the Tribunal. He also outlines a few suggestions towards this end.

1. Courts and Tribunals are temples of justice. They are viewed with great sanctity and reverence. The Income Tax Appellate Tribunal is in existence for more than 67 years and is one of the oldest temples of justice in our country. Recent CBI raid on the residence of the sitting member of the ITAT has shaken the faith and confidence as well as sullied the reputation of this great institution. The Federation is of the opinion that there has to be speedy and impartial examination of the entire episode. If it is held to be a frame up, the member concerned should be reinstated with dignity and Bar should make sincere attempt that such incidents do not recur. On the other hand if it is found that the incident to be correct, the Bar and Bench will have to play a positive role to eradicate the cancer of corruption from the institution. There has to be national debate and like minded people and members must come together and try to find a workable solution for eradicating the seeds of corruption from the roots of the institution.

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The judgement of the Delhi Bench of the Tribunal in Mayawati vs. DCIT, and the hysterical reactions thereto by the opposition political parties, makes interesting reading. The Tribunal was faced with the question whether whopping “gifts” amounting to Rs. 12 lakhs in cash and Rs. 62 Lakhs in immovable property received by the Dalit Czarina was assessable to tax as unaccounted income.

The Officer’s incredulity at the BSP Supremo’s claim that she had received “gifts” was founded on the fact that the so-called donees were seen to have borrowed moneys to bestow the largesse. They were not family members of the Dalit leader nor was there any other relationship. There was also no “occasion” for the benevolence, he claimed. Ergo, the bonanza was nothing but Madam’s illegitimate income, he alleged.

The Tribunal, however, did not have the same suspicious mind as that of the Officer. It took the view that “the aspect of voluntariness depends upon the mental state. The element of love and affection relate to emotions of a man. One may be impelled by his conscience or may be moved by emotions to part away with his wealth or property and to give the same to a particular person for whom he has developed love and affection. Such a desire can be developed at any time and on any ground. The factors which weigh for executing such desire are best known to the donor. It is not easy to make probe into such human psychology or human emotions which one may carry at the time of making such sacrifices. It has been stated by some of the donors that the assessee was engaged in the welfare of downtrodden and dalit in the society. May be the prompting motive were such appreciable deeds of social welfare of the problem of the weaker sections of the society, which made the donors to make gifts to her”.
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1. The State Commission, Delhi, by its order dated 10-3-2006 in Appeal No. 1815 of 2000 held that the services rendered by the Lawyer would not come within the ambit of Section 2(1)(o) of the Consumer Protection Act, 1986, as the client executes the power of attorney authorizing the Counsel to do certain acts on his behalf and there is no term of contract as to the liability of the lawyer in case he fails to do any such act. The State Commission further observed that it is a unilateral contract executed by the client giving authority to the lawyer to appear and represent the matter on his behalf without any specific assurance or undertaking.

2. Against the aforesaid order the Complainant had preferred the Revision Petition before the National Consumer Disputes Redressal Commission, New Delhi. The National Consumer Disputes Redressal Commission, New Delhi vide their Revision Petition No. 1392 of 2006 dated 6th August, 2007 has held that “In our view, the reasoning given by the State Commission is totally erroneous. The ambit and scope of Section 2(1)(o) of the Consumer Protection Act which defines ‘service’ is very wide and by this time well established, it covers all services except rendering of services free of charge or a contract of personal service. Undisputedly, lawyers are rendering service. They are charging fees. It is not a contract of personal service. Therefore, there is no reason to hold that they are not covered by the provisions of the Consumer Protection Act, 1986.”
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This could have come straight off a Ripleys’ believe it or not entry. Imagine – a court   room in a car!

HT reported that The Employees Provident Fund Appellate Tribunal, India’s top court dealing with PF disputes from across the country, has been functioning from an ambassador car for more than three months now. It has apparently been like this ever since a fire on October 6 destroyed its office in the ninth floor of Mayur Bhawan in Delhi. The car is the official vehicle of R.L. Koli, the Tribunal head or the presiding officer, as he is known.

HT provided graphic details as to how the court in the car functions: Apparently, the Tribunal’s head and his stenographer sit on the rear seat. The lawyer positions himself on the front seat, near the driver’s, and turns back to make submissions.

This sorry state of affairs did not go unnoticed. Outlook reported that the Chief Justice of India K G Balakrishnan lashed out at the government apathy. "There is failure of the states to create better judicial infrastructure. It is pity that the Executive is neglecting judiciary while carrying out infrastructure development in the states," it quoted him as saying. Unless the Executive comes forward with funds to provide adequate infrastructure to the judiciary, the latter will not be able to contribute better to the society, he said, adding that the states have to find a way out to bring judiciary out of the infrastructure constraints.