Tax tribunal's role in settling disputes

Quite often than not, the assessments are done by the sole discretion of DCT. And those cases do not result into any sort of disputes. Revenue, often deprived, does not cause any dispute or discord with the tax payer in most cases. These are often the core revenue files. Consequently, few cases have gone to the appeal section of the revenue department.

The appeal officials are mostly on deputation from the assessment offices under NBR. They are of the levels of appellate joint commissioner, appellate additional commissioner, commissioner of taxes, of tribunal under the quasi judicial banner. But the officials working in appeal section are all taken from taxation services, actually under NBR. Only the retired Commissioners of Taxes are taken on contracts for the tribunals as members. This leads to limitations of the tribunal. Such situation stems from the fact that the contract of members, deputation of officials and staff are directly controlled by the NBR when their verdicts and outputs in the tribunal are supposed to be directly against the NBR, revenue and their employer. Consequently they are not free to infuse justice on disputes. Nevertheless these officials have been doing this job somehow rather only for maintenance of a balance and the routine work. Also some body has to do the unpopular jobs for the government.

The recent changes in tax laws have rendered the disposals to an expeditious delivery of justice by the appeal section of the revenue despite limitations. This has occurred by way of imposing time frame for disposals along with tax official personnel in the Tribunal Benches with a few honest persons at the top of the tribunal. The tribunal functions by way of two members, often retired Commissioners of Taxes now. When both of them are having total allegiance to revenue their verdicts quite often go in favour for revenue. Moreover, they are directly under NBR, having worked under NBR and got into contract with NBR. With the exception of only a few for personal qualities, they cannot get out of the domain of NBR for delivering justice.

In no court/quasi court absence of retired judge/judge is evident except these courts -- the tax appellate tribunals. The tribunals should be brought under Ministry of Law, which is a long cherished demand of assessee and lawyers. Earlier, the tribunals used to include a member from judicial cadre, giving it a judicial look but that has become lackluster by absence of any judicial cadre persons.

However, the tribunal in the recent past has taken large number of steps for disposal of cases despite all limitations. The recent 1.5 years have marked a disposal of about 15,000 cases. Now the disposal takes only a month which previously took 2 to 3 years. The time frame enshrined in law of the day along with very efficient persons in the tribunal has shown remarkable efficiency in disposal. But in most cases justice has been only partly rendered to the assessee.

But large number of faulty assessments by some officials have also rendered the revenue to suffer at large. This means, irrational, unjust and egoistic assessments by the offices have led to the deprival or deferral of receipt of revenue by the government. Those officials have never been made accountable for their deeds, more properly misdeeds. They should be held for such misdeeds and wrong doings after scrutiny at tribunal. The evasion are dual function of these wrong doer officials and the assessees.

As such tribunal's domain for actions should be extended.

In order to effect the extension judicial cadre members should be deployed along with retired members of tax cadre. But the services of members have to be contained in the law ministry. It is ridiculous to expect verdict against employer, when the contractual employment depends on the sweet will of NBR. The tribunal and appellate body officials should be trained by judicial and those of judicial cadre by the tax personnel to infuse efficiency and justice together. The law and fiscal expertise together are likely to bring in positive outcome and equitable justice to the appellants. This will add impetus to revenue also as people will feel urge to pay taxes.

Also new additional benches would be created to instantly settle down the disputes and discords between assessees and revenue. Justice delayed is justice denied. Thus far as such the tax appeal offices, from bottom to top have deprived the seekers of justice by way of dilly dallying. Now that the law has taken note of tightening the flaws in appeal system and offices, justice should me made ready for all who need it. Also those officials depriving the seekers from getting justice and resultantly instigating them to seek justice from appeal office must be brought under note. Time is passing fast and there is no moment to spare and to ponder over it any more. Let us not bring the changes but suomoto start the changes for development through drawn but expeditious reform actions. Of course we cannot spare moments for reform wailing for prescriptions by heterogeneous agencies often against national interest as we cannot any longer afford that.

Masih Malik Chowdhury, FCA is partner, Masih Muhith Haque & Co.,chartered accountants.