The Constitution of India recognizes the significance of Co-operative Societies by incorporating them within Part III, i.e., Fundamental Rights, specifically under Article 19(1)(c). Co-operative Societies are also addressed in Part IV, which outlines the Directive Principles of State Policy.

In line with the objective of facilitating the systematic growth of the co-operative movement, the Maharashtra Co-operative Societies Act,1960 (“MCS Act”) was enacted. In 2011, Article 43B and Part IX-B (consisting of Article 243ZH – Article 243ZT) were inserted in the Constitution by the ninety-seventh constitutional amendment. As per Article 43B of the Constitution of India, it is the duty of the State to actively promote the voluntary formation, autonomous functioning, democratic control, and professional management of these societies. Part IX-B of the Constitution of India focuses on the co-operative societies and provides a comprehensive framework for their incorporation, regulation, and winding up. The process of election of board members is outlined in Article 243ZK. The provisions of this Part apply to multi-state cooperative societies with necessary modifications by the State. Further, this part extends to Union Territories, subject to specific provisions for territories without a Legislative Assembly. However, Part IX-B of the Constitution so far State Co-operative Societies are concerned has been struck down / quash by the Hon’ble Supreme Court in case of Union of India v. Rajendra N. Shah, 2021 SCC Online SC 474, decided on 20-07-2021. However, the State of Maharashtra had already amended the Maharashtra Co-operative Societies Act as mandatory by the Part IX-B of the Constitution of India.

Recognizing the substantial presence and influence of Co-operative Housing Societies within this sector, Chapter XIII-B was introduced into the Act in 2019.

Introduction

Under the MCS Act, different types of co- operative societies exist based on their objectives. Among them are Housing Co- operative Societies having members less than or upto 250 members as of March 31st of the preceding year, also known as Type “E” co- operative housing societies whereas the Housing Co-operative Societies having more than 250 members fall under Type “C” societies. Co- operative Housing Societies have the primary goal of providing affordable housing and / or related common amenities and/or services to its members. These societies consist of individuals who collaborate to construct or acquire residential properties. The Act contains provisions and regulations governing the establishment, functioning, and management of these societies.

This article focuses on the provisions of the Election Rules for Co-operative Housing Societies which fall under Type “E” Societies.

State Co-operative Election Authority

According to Section 73CB(1) of the Act, the State Co-operative Election Authority (“SCEA”) is the designated authority responsible for overseeing the preparation of electoral rolls and the conduct of all elections in co-operative societies. However, with the introduction of Chapter XIII-B for Housing Societies in the Act, an amendment was made to sub-section (11) of Section 73CB in 2019 by inserting second proviso, which provides that in case of Type “E” Co-operative Housing Societies, the elections of the Committee shall be conducted by the said housing society itself in the prescribed manner. Following the amendment, the Managing Committee and the Returning Officer of such a society became responsible for conducting elections for the committee.

To regulate the conduct of elections to the co-operative societies, the State Government introduced the Maharashtra Co-operative Societies (Election to Committee) Rules, 2014 (“Election Rules”). These Rules have replaced Maharashtra Specified Co-operative Societies to Elections to Committee Rules, 1971 and also Rules governing Notified Societies under Chapter V-A of MCS Rules. In 2021, the State Government amended the Election Rules by Maharashtra Co-operative Societies (Election to Committee) (Amendment) Rules, 2019 and laid down the procedure for conduct of election for housing societies in Maharashtra having less than or up to 250 members. This was done by primarily amending Rule 2 and 4 thereof, by adding Clause (V) to provide for a new category i.e. Type “E” societies as those with up to 250 members as of March 31st of the preceding year. To provide specific guidelines for the election process in Type “E” societies, a new part titled X-1A was introduced to the Election Rules. This part encompasses Rules 76-A to 76-R, which are exclusively applicable to Type “E” societies including Rules 1, 2, 4, 14, 17, 72, 78 to 86 of the Election Rules also made applicable vide Rule 76-R thereof. Rule 76-A states that the rules outlined in Part- X-1A are designed for Type “E” Societies, defined as housing societies with up to 250 members. Powers of the SCEA are specified in Rule 3 of the Election Rules and that by amendment in Rule 2(16) the power of the SCEA to appoint Returning Officer was taken away and the same is conferred upon the Managing Committee of the Society or the Registrar.

Appointment, Eligibility and Role of the Returning Officer

According to Rule 76-B of the Election Rules, the Managing Committee of a co-operative society is responsible for appointing a Returning Officer to conduct elections. The Returning Officer can be chosen from a panel of Returning Officers approved by SCEA and maintained by the Divisional Joint Registrar of Co-Operative Societies or from among the members of the Society who do not wish to contest the election. This appointment should be made at least sixty days before the existing Committee’s tenure expires, and the information should be communicated to the Registrar. The tenure of the Managing Committee extends for a period of five years, commencing from the initial meeting of the newly constituted Committee.1

While explicit qualifications or experience requirements are not stipulated for assuming the role of a Returning Officer, it is essential that the individual is of legal age, mentally sound, and not disqualified by law. The Returning Officer cannot be an auditor, employee, or a member of the outgoing management committee.

The Divisional Joint Registrar may prescribe minimum qualifications and experience criteria for enrolment as a Returning Officer on the panel maintained by them and approved by the SCEA2.

Furthermore, undergoing mandatory training is an essential requirement for the Returning Officer. This training can be obtained from the District Cooperative Housing Society Federation or any institute specified by the State Government. A training app called “Election CHS Training” in the Google Play Store is one of the many accessible training options, along with in-person training workshops and online training. Participants who successfully conclude the course are awarded a training certificate by the District Co-operative Housing Federations, verifying their eligibility to serve as Returning Officers.3

The Registrar has the ability to name a Returning Officer from the authorised panel in the event the Society’s committee fails to do so, and may do so suo moto or in response to a request from any member of the society.

As per Rule 14 r.w. rule 76-R of the Election Rules, it is general duty of the Returning Officer at any election to do all such acts and things as may be necessary for effectually conducting the election in the manner provided in these Rules and Bye Laws of the Society.

Provisional List of Voters

As per Rule 76-C of the Election Rules, the Provisional List of Voters, is a temporary compilation of names prepared and published by the Secretary or an Authorized Officer appointed by the Registrar of the society. It is created at least sixty days prior to the scheduled election and includes the names of Members and Provisional Members listed in the “I” Register and “J” Register of the Maharashtra Co-operative Societies Rules, 1961 (“Rules, 1961”). Joint Members and Associate Members are excluded from this list. Provisional List is prepared with the purpose to allow members to raise claims or objections regarding their inclusion. The Provisional List is posted on the notice board of the society, sent to the Registrar’s Office, and made accessible to all members through written notice with acknowledgment or by any electronic mode4.

As per Rule 76-D of the Election Rules, the provisional list shall contain the surname, name father or husband name, age, gender with addresses as recorded in Register of Members in Form E-3 and with such other particulars as may be necessary to identify the member.

Claims and Objections

According to Rule 76-E of the Election Rules, any member, associate member, joint member, or provisional member of the society, or any person having an interest in one of the society’s flats, may file claims and objections to the provisional list of voters. Such claims and objections must be made in writing stating the grounds on which claim is based or the objections are raised to the Returning Officer within 10 days of the provisional list’s publication. The Returning Officer will then conduct necessary inquiries and make a decision on each claim or objection or corrections within 10 days from the last date for receiving the claims or objections. The decision will be communicated in writing to the concerned individuals. Once all claims and objections have been resolved, the Returning Officer will publish the final list of voters within 10 days from the last date prescribed for receiving the claims/ objections in Form E 3(1). This final list will be displayed on the society’s notice board within two days of its preparation. The final list of voters is conclusive and an unamendable list.5

Transfer of Voting Rights

Rule 76-F of the Election Rules outlines the process for the transfer of voting rights in a society. Members of the society must submit written consent for transfer of voting rights to an associate or joint member within ten days of the publication of the provisional list of voters. This transfer is allowed under specific circumstances, such as when a relative is admitted as an associate member or when multiple individuals hold shares jointly.

In the case of legal entities like companies or firms, the authorized director, person, or partner must inform the Returning Officer of the representative appointed to vote on their behalf within the same ten-day period. Failure to communicate the representative’s name means the company or legal entity cannot exercise its voting rights.

Before the provisional list of voters is published, the secretary or office bearers have certain responsibilities. These include updating the associate member register and the ‘I’ and ‘J’ registers, informing all members about the amended definition of associate and joint members, promptly deciding on applications for associate membership, and issuing notices to inform legal entities and members about the transfer of voting rights as per the Election Rules.6

Election Program Guidelines

The election program for conducting elections in a society is governed by Rule 76-G of the Election Rules, which outlines the various stages and timelines. The Returning Officer is responsible for declaring the program within seven days of displaying the final list of voters. The program includes important dates such as the last date for making nominations, the date of publication of the list of nominations, the date of scrutiny of nominations, the date of publication of the list of valid nominations after scrutiny, the last date for withdrawing candidature, the date of publication of the final list of contesting candidates and allotment of election symbols, the date and time of the Special General Body Meeting or declaration of uncontested election, the date, time, and place for counting votes, and the date of declaration of voting results.

The election program must be published on the society’s notice board, and copies should be provided to all members either electronically, by hand delivery, registered post, or courier along with the notice of the Special General Body Meeting with date, time and venue in which the election will be conducted, if required. The Notice shall contain information regarding (i) no of vacancies to be filled by election and (ii) no of reserved seats as per the Act and Bye Laws.

The Returning Officer has the authority to determine the dates, times, and venues of each stage of the election program, ensuring maximum member participation. It is mandatory to call a Special General Body Meeting to declare the results of an uncontested election, and only the election matter should be discussed during the meeting. Even housing societies with fewer than 10 members must follow the election program outlined in the Election Rules. The Returning Officer does not have the authority to shorten the time periods specified in the election program. Before publishing the election program, the Returning Officer must finalize the dates and times of each stage, make necessary arrangements, ensure the availability of required resources and documents, and choose a convenient venue for the Special General Body Meeting. It is important to verify the addresses and email addresses of members to provide them with the election program information.

Nomination Form Procedure

The nomination process for candidates is governed by Rule 76- H of the Election Rules. As per the Rule, candidates must submit their nominations in FORM E-5, which shall be provided free of cost by the Returning Officer to the members. The nomination paper needs to be signed by two members listed in the final voter list, one acting as the proposer and the other as the seconder. The candidate is also required to include a signed declaration expressing their willingness to stand for the election. If contesting for reserved seats, the nomination paper must be accompanied by a copy of the Caste Certificate issued by the Competent Authority. Upon receiving the nomination papers, the Returning Officer assigns a serial number, certifies the date and time of receipt, and provides a written acknowledgment. The Returning Officer prepares and publishes a list of the confirmed nominations at the end of the nomination period. Individuals whose names are not on the final voter list or who are disqualified by the terms of the Act, Rules, or bye-laws are not eligible to be nominated as candidates.7

Symbols and Deposit Rules (Rule 76-I and 76-J of the Election Rules)

According to the Election Rules, the SCEA has provided a list of specified symbols that candidates may choose from during elections. However, symbols associated with recognized political parties are not allotted. If multiple candidates prefer the same symbol, it will be allocated on a “first come first serve” basis8. The Returning Officer is responsible for displaying the list of symbols specified by the SCEA and ensuring that symbols associated with recognized political parties are not allotted. If a candidate submits more than one nomination paper, the symbols mentioned in the declaration of the first nomination will be considered as their choice of symbols.

Candidates are required to deposit a specific amount as a nomination fee. Deposit for SC/ ST category is Rs.200/- and for other than SC/ ST category it is Rs.500/-

The procedure for the return or forfeiture of a candidate’s deposit is governed by Rule 70 r.w. Rule 76-R of the Election Rules. If a candidate’s name is not included in the list of contesting candidates due to rejection or withdrawal of their nomination, or in the case of the candidate’s death before the commencement of the poll, the deposit shall be returned, if possible, after the publication of the list or after the candidate’s death. If a candidate runs in the election and his or her deposit is not forfeited, it shall be reimbursed as soon as the election results are announced. On the other hand, a candidate’s deposit shall be forfeited to the Election Fund if they fail to get elected and receive less than one-tenth of the valid votes cast overall (or, in the case of elections for more than one member, one-tenth of the votes divided by the number of members to be elected).

Within two days after the election results, the forfeited deposit amount must be sent to the Election Fund of the SCEA’s bank account. The transfer details should be submitted to the Hon’ble Secretary of the SCEA in Pune.9

Nomination Scrutiny Procedure

One of the most important steps in making sure an election is fair and transparent is the scrutiny of nominations, as laid out in Rule 76-K of the Election Rules. The Returning Officer at the appointed hour shall take up scrutiny of nominations papers and shall examine the nomination papers and makes decisions about any objections made by any candidate, proposers, or seconders. Either on receiving such objection or on his own motion, the Returning Officer may accept or reject any nomination after conducting summary inquiry, if any, as he thinks necessary. The Returning Officer for the reasons to be recorded in writing, may reject any nomination for any number of reasons, such as nomination paper not signed or filled or candidate is disqualified under the MCS Act, Rules or Bye-laws of the Society. Minor flaws (not of a material character), such as spelling and clerical mistakes, incorrect voter list number shall not result in rejection.

The Returning Officer may permit the members in attendance to review the nomination documents during the scrutiny, ensuring openness. If any objections arise, the concerned candidate must be given a reasonable opportunity to respond within a specific timeframe. The Returning Officer records the decision on each nomination paper and communicates the reasons for rejection, if applicable.10

The candidate has the right to appeal under Section 152A of the MCS Act against the decision of rejection of his nomination within three days to the Registrar, who must resolve the appeal within ten days. There is no right of further appeal or reconsideration after the Registrar’s decision making in the appeal, and it is final.

Withdrawal in Form E-6

According to Rule 76-L, any candidate can withdraw their nomination by submitting a notice of withdrawal in writing. The notice must be subscribed by the candidate and delivered to the Returning Officer using Form E-6. This withdrawal can take place at any time after the nomination paper has been presented, but it must be done within the timeframe specified in the election program. The Returning Officer will compile a list of candidates who have withdrawn their candidature.

Candidate List Preparation

As per Rule 76-M of the Election Rules, the Returning Officer is responsible for preparing and declaring a final list of contesting candidates, which is displayed on the society’s notice board in Form E-7. The list contains the names of candidates arranged in alphabetical order. The allocation of symbols is mandatory, and the Returning Officer follows a specific procedure. Firstly, the Officer refers to the list of valid nominations, excludes withdrawn candidates, and includes candidates whose appeals have been accepted by the Registrar under Section 152A, if applicable.

A meeting is then convened to allocate symbols to the candidates. Additionally, if more than 30% of the candidates for total contesting seats come together and form a group, they can request a common symbol through a written application signed by all concerned candidates.

Polling Procedures and Guidelines

In Rule 76-N of the Election Rules, the process for conducting a poll is outlined. If the number of candidates whose nomination papers are valid exceeds the number of candidates to be elected for a particular constituency, a poll must be conducted. The Returning Officer has the authority to appoint polling officers as needed. Canvassing of votes at the election venue is prohibited. Before the poll begins, the Returning Officer must display the empty ballot box, lock it, and affix seals to prevent tampering. Each member eligible to vote receives a ballot paper with the names of candidates in alphabetical order. The voter must mark an ‘X’ against the name(s) of the candidate(s) they wish to vote for and put it into the ballot box. Members cannot enter a polling compartment when another voter is inside. If the identity of a voter is challenged, the Returning Officer will make an inquiry and decide on the matter.

If there are any interruptions or obstructions during the poll, or if it is impossible to conduct the poll, the Returning Officer has the power to postpone it and must record the reasons for doing so. The decision of postponement must be communicated to the Registrar and displayed on the society’s notice board. In case of a postponed poll, a new notice of a Special General Body Meeting must be issued at least seven days in advance11. The existing committee will continue to manage the society until the new committee is elected or an Authorized Officer is appointed by the Registrar. There is no provision for online voting for outstation members provided for in the Rules.

The Returning Officer presides over the Special General Body Meeting, which is attended by all members whose names appear in the final voter list. The meeting does not require a quorum, and the Returning Officer briefs the members about the election process.12

Voting rights of members of housing society

According to Section 154B-11 of the Act, no member of society shall have more than one vote in its affairs. If members of the one family own multiple flats/ houses in a society, each of them is entitle to vote as held by the Supreme Court in the case of Veena Kumari Tandon v. Neelam Bhalla & Ors. [(2007) 12 SCC 764] while interpreting Section 27 of the MCS Act (which is substantially similar to Section 154B-11 of the MCS Act) dealt with voting rights of members of all co-operative societies including housing societies (prior to the insertion of Chapter XIII-B) and upheld the principle of “one house/ unit, one vote” as provided in the statute and also held that the principle of “one family, one vote” as provided in their bye-laws was in derogation of the statute. Even those who default payments are allowed to vote. Further, every right to vote shall be exercised personally and in case of equality of votes, the chairman shall have a casting vote in the meeting of the society. Associate Members shall have a right to vote with prior consent of a Member. The provision also provides that a provisional member shall also have right to vote and in case of joint member, the person whose name stands first in the share certificate, shall have right to vote. In his absence, the person whose name stands second, and in the absence of both, the person who stands next and likewise, who is present and who is not a minor, shall have right to vote. In case of association of society, authorized person of member society shall have right to vote. In case of company or firm or any other body corporate or local authority or any legal body constituted under any law for the time being in force, the authorised director or person or any one of the partners as appointed by the firm, shall have right to vote.

Counting of votes and Declaration of results (Rule 76-O of the Election Rules)

As soon as the polling is completed according to the declared election program, the Returning Officer initiates the counting process. The Returning Officer, assisted by a Counting Assistant if appointed, opens the sealed ballot box in the presence of the members and candidates. The ballot papers are then taken out and organized into separate bundles based on the category of constituency, using different colors for easy arrangement.

Once the counting process is completed, the Returning Officer declares the constituency- wise result of the candidate who has received the highest number of valid votes as elected. The result is certified in Form E-17. Within two days of the declaration of the result, the Returning Officer submits the result to the Registrar and publishes it on the society’s notice board. The Registrar then proceeds to constitute the committee within 15 days upon receiving Form E-17.

As per Section 154B-19(4) of the MCS Act, a casual vacancy in the Committee, can be filled through co-option, and the term of the co-opted member aligns with the term of the Committee. Furthermore, as per Section 154B-22 of the MCS Act, if members from reserved categories are not available or elected to fill reserved seats, those seats are not counted towards the strength of the managing Committee for the composition of a quorum during meetings, as specified in sections 154B-20 and 154B-21 of the Act.

Election of Office Bearers

The election of office bearers is regulated by Rule 76-Q of the Election Rules. It states that the Returning Officer, must call a meeting of the elected committee members to elect the office bearers. At least seven days’ notice, given in writing with an acknowledgment, must be provided to every member of the committee. The notice should include information regarding the number of officers to be elected, as well as the date, place, and time of the meeting. The proceedings of this meeting should be recorded in the society’s minute book and communicated to the Registrar.

Moreover, as per Section 154B-19 of the MCS Act, the Committee of the society shall stand constituted on the date of declaration of result of election to the Committee by returning officer where more than two third of the Committee Members of the strength as may be decided by the Registrar, from time to time, have been elected. However, where two third is a fraction, it shall be rounded off to next higher number. The meeting will be presided over by the Returning Officer, and there is no provision of taking permission of the Registrar to call such meeting.13

Custody of Election Documents

As per Rule 76-P of the Election Rules, during an election, specific documents are required to be sealed. The Returning Officer is responsible for carefully preserving all the records of the election in a box duly locked and sealed and hand it over to the Secretary or authorized officer of the society for a period of 6 months and destroy thereafter. However, if the result of the election is disputed, the records pertaining to the election shall be preserved until the final decision of the dispute.

Election Expenditure

The Election Expenditure Report emphasizes the responsibilities of the Returning Officer in managing election expenses. The Returning Officer is required to submit statements of account that detail the expenditure incurred during the election process. However, as, there is no provision in the Election Rules on how to levy the election expenses and also due to the lack of a definite policy of the government regarding the levying of expenses, the government received various complaints that the Returning officers were charging unreasonable expenses for the elections of the co-operative housing societies. Accordingly, to resolve this issue, after taking into consideration the present situation, the maximum working hours / allowances, the government fixed the election expenses vide Government Resolution No.

dated 6/7/2022 as follows:

 

Membership strength Returning officer and

Remuneration

Election expenses Total expenses in case of election Total cost if

unopposed

  If election held If election unopposed election ballot, nomination form printing and stationery Travel expenses
1-100 3500 2000 2000 1500 7000 3500
101-250 4500 3000 2500 1500 8500 4500

As per the said GR, all the expenses incurred for holding the special general body meeting for elections such as table, chair, electricity, meeting room and other incidental expenses should be borne by the Society. Further, society must make payment to the Returning officer.

Thus, the Returning Officer must make sure that the election expenses claimed are accurate, valid, presented correctly, provided on time, and auditable by the managing committee and does not go over the cap established by the Government Resolution dated 06/07/2022. For its part, the committee is in charge of giving the returning officer all required logistical assistance and advancements. Before the subsequent General Body Meeting, the committee must submit a statement of expenses for approval.

If the Returning Officer is appointed by the Society from amongst its members then such officer is entitled to payment from the society for training expenses. The Returning Officer cannot, however, recover such costs if they are chosen from a panel.14

Election Disputes and Corrupt Practices (Rule 78 under Part XI and Rules 79 to 86 under Part XII of the Election Rules, respectively)

The rules regarding election disputes and corrupt practices are defined in Sections 78 to 86 of the Act. According to these rules, any election can only be questioned through an election petition presented to the Co-operative Court, as specified in Section 91 of the Act.

It is settled principle in law that where election process has already commenced and is at an intermediate stage, court should refrain from interfering in the same in its writ jurisdiction as the aggrieved petitioner has an efficacious alternate remedy under Section 91 of the MCS Act to challenge the same after declaration of results.15 However, in the case of Dhanraj Dattatray Patil & Ors. v. State Co-operative Elections Authority [2023 SCC OnLine Bom 776]the Bombay High Court entertained a Writ Petition filed under Article 226 challenging an order passed by the Taluka Returning Officer & Assistant Registrar, Co-operative Society, Mukhed, which deleted their names from the provisional voters list for being defaulters under sections 73(CA)(1), 75(2), and 27(10) of the MCS Act on the ground that though the Petitioner has an effective and efficacious alternate remedy under Section 91 of the MCS Act and that preparation of provisional voters list is an intermediate stage, the impugned order being patently illegal and would deprive 20 voters from participating in the elections, and directed to include the names of the Petitioners in the final voters list without disturbing the election process. While passing the order, reliance was placed on the decisions of the Dattatray Genaba Lole v. Divisional Joint Registrar, Co-operative Societies reported in (2022) 1 Bom CR 471 wherein it was held that High Court under certain circumstances alone (i.e. ground of patent illegality), can interfere with the election process.16

Corrupt practices, as defined in Section 79, include bribery, which involves candidates or their agents offering gifts or promises to induce individuals to contest or withdraw from elections, or to influence voters. Other corrupt practices involve undue influence, hiring vehicles for conveying electors, using vehicles belonging to a society for elections, incurring unauthorized expenses, making special advances or loans, and favoring electors between the declaration of the program and the declaration of election results. The Election Rules also emphasize maintaining the secrecy of voting, prohibiting officers and individuals from acting for candidates or influencing voting, canvassing near polling stations, maintaining order and decorum, and penalizing misconduct at polling stations. These rules aim to ensure the integrity and fairness of the electoral process, and any violations of these regulations may result in penalties or legal consequences.

Conclusion

On perusal and analysis of the Election Rules, particularly, Part X-IA thereof, it appears that the Government has made an endeavor to simplify the procedure of conducting the election process for small societies. However, there appears to be some lacunas like non provision of rules for situations like rejection of ballot papers (as Rule 55 is not applicable to Type “E” Societies) or not providing any rule in respect of election expenditure report or maximum that the returning officer can spend for election, etc. As this Part X-IA of the Election Rules have recently been amended, there also appears to be lack of awareness amongst the citizens and not much material on the same is easily available online including on government portals. However, active attempts are made by the co-operative department on the awareness front which is laudable.

  1. Sub-section (3) of Section 154B-19 of the MCS Act
  2. By Shri Rajesh Lovekar, Deputy Registrar, C.S. and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 4, (Rajeshree Publication 2021).
  3. By Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 6, (Rajeshree Publication 2021).
  4. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 15-19, (Rajeshree Publication 2021).
  5. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies, 25- 30, (RajeShree Publication 2021).
  6. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 38-43, (RajeShree Publication 2021)
  7. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 66-71, (RajeShree Publication 2021)
  8. Rule 76-M(3)(b) of the Election Rules
  9. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 80-83, (RajeShree Publication 2021).
  10. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 88-91, (RajeShree Publication 2021).
  11. Proviso to sub-section (4) to section 166
  12. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 107-114, (RajeShree Publication 2021)
  13. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 129, (RajeShree Publication 2021).
  14. Shri Rajesh Lovekar, Deputy Registrar, C.S and Adv. Shreeprasad Parab, Law relating to Election of Housing Societies 133-134, (RajeShree Publication 2021).
  15. Shri. Sant Sadguru Janardan Swami (Moingiri Maharaj) Shahakari Dugdha Utpadak Sanstha v. State of Maharashtra [(2001) 8 SCC 509]; Someshwar Sahakari Sakhar Limited v. Shrinivas Patil reported in 1992 SCC OnLine Bom 48 and Shri. Sant Sadguru Janardan Swami (Moingirid Maharaj) Sahakari Dugdha Utpadak Sanstha reported in (2001) 8 SCC 509
  16. Also followed in Vaibhav Manohar Bhokare v. State Co-operative Election Authority through its Secretary reported in 2023 SCC OnLine Bom 133

 

Introduction

The concept of ‘proceeds of crime’ is central to understanding the full import of the Prevention of Money Laundering Act, 1992 (PMLA). The phrase ‘proceeds of crime’ is fairly generic and self-explanatory. However, for the purposes of the act, the phrase proceeds of crime has been given a very specific meaning which is critical because of the way the offence of money-laundering has been defined under the PMLA. A perusal of Section 3 of the PMLA will show that the phrase proceeds of crime is the fulcrum around which the offence of money laundering is balanced. The term proceeds of crime may, at first blush look to be all- encompassing, but for the purpose of the PMLA, it is exhaustively defined.

The phrase ‘proceeds of crime’ is especially important for those advocates and chartered accountants who seek to practice in the practice area of attachment and confiscation under the PMLA as the attachment and confiscation that, as provided for under the said act, is with respect to proceeds of crime.

The Offense of Money Laundering

To better appreciate the importance and role of proceeds of crime under the PMLA, it would be appropriate to first look at the offence of money laundering itself. After all, it is the definition of money laundering that gives importance to this phrase. The Offence of money laundering is defined by Section 3 of the PMLA which states: “Whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the [proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming] it as untainted property shall be guilty of offence of money-laundering.

Explanation— For the removal of doubts, it is hereby clarified that—

  1. a person shall be guilty of offence of money laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely:
    1. concealment;
    2. or possession;
    3. or acquisition;
    4. or use;
    5. or projecting as untainted property;
    6. or claiming as untainted property in any manner whatsoever,
  2. the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever.]”

The term proceeds of crime finds itself taking centre stage not only in the section itself but also the explanation thereto. A literal interpretation of the section leaves little room for doubt that for the offence of money laundering to be made out, there must be a connection with proceeds of crime. It is in fact this connection that separates the offence of money-laundering from the primary offence which generates the proceeds of crime. Therefore, the existence of proceeds of crime is essential for the existence of attachment and prosecution proceedings for the offence of money laundering made out under the PMLA.

The Supreme Court in Vijay Madanlal Choudhary & Ors. v. Union of India & Ors. 2022 SCC OnLine SC 92 has that the expression “money-laundering”, ordinarily, means the process or activity of placement, layering and finally integrating the tainted property in the formal economy of the country. The Court however observed that Section 3 of the Prevention of Money Laundering Act has a wider reach. The offence, as defined, captures every process and activity in dealing with the proceeds of crime, directly or indirectly, and is not limited to the happening of the final act of integration of tainted property in the formal economy to constitute an act of money laundering. From the bare language of Section 3 of the Act, it is amply clear that the offence of money laundering is an independent offence regarding the process or activity connected with the proceeds of crime which had been derived or obtained as a result of criminal activity relating to or in relation to a scheduled offence. The process or activity can be in any form — be it one of concealment, possession, acquisition, or use of proceeds of crime as much as projecting it as untainted property or claiming it to be so. The involvement in any one of such processes or activities connected with the proceeds of crime would constitute an offence of money laundering. This offence otherwise has nothing to do with the criminal activity relating to a scheduled offence — except the proceeds of crime derived or obtained as a result of that crime. The Supreme Court observed that it is only such property which is derived or obtained, directly or indirectly, as a result of criminal activity relating to a scheduled offence that can be regarded as proceeds of crime. The authorities under the Act cannot resort to action against any person for money laundering on an assumption that the property recovered by them must be proceeds of crime and that a scheduled offence has been committed unless the same is registered with the jurisdictional police or pending inquiry by way of complaint before the competent forum. The expression “derived or obtained” is indicative of criminal activity relating to a scheduled offence already accomplished.

The observations of the Supreme Court in this landmark judgement bring proceeds of crime into sharp focus with respect to the offence of money laundering. In order to better understand the offence of money laundering, it is essential to understand the concept of proceeds of crime.

Proceeds of Crime

The phrase proceeds of crime would sound to anyone who reads it as self-explanatory and for all intents and purposes it is. Generically, the phrase proceeds of crime would mean the benefit obtained from a criminal activity. This generic meaning would of course be very vague and all- encompassing and would not do for a specialised legislation such as the PMLA. Section 2(1)(u) of the Prevention of Money Laundering Act defines the term ‘proceeds of crime’. The Supreme Court in Vijay Madanlal Choudhary held that the term “proceeds of crime” needs to be construed strictly as it is one of the core ingredients constituting the offence of money laundering.

The definition reads as follows:

“proceeds of crime” means any property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to a scheduled offence or the value of any such property [or where such property is taken or held outside the country, then the property equivalent in value held within the country [or abroad]]

[Explanation.—For the removal of doubts, it is hereby clarified that “proceeds of crime” include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be

The relevance of ‘Proceeds of Crime’ under the Prevention of Money Laundering Act, 1992 derived or obtained as a result of any criminal activity relatable to the scheduled offence;]

The definition of proceeds of crime is extremely wide in as much as it refers to any property derived or obtained both directly and indirectly “as a result of criminal activity relating to a scheduled offence” or the value of any such property. In fact, in the definition that seems to cover as much ground as possible by using extremely wide terms such as “directly and indirectly”, the only restraint seems to be the statutory requirement that for the purposes of the PMLA, just any ‘proceeds of crime’ shall not do. Proceeds of crime for the purposes of PMLA must be as a result of criminal activity relating to a scheduled offence. This restraint is a redeeming factor and the cornerstone of every defence that can be taken up for proceedings under the PMLA, whether they be criminal proceedings with respect to prosecution or civil proceedings with respect to attachment. While the words of the section talk about property resulting from a criminal activity relating to scheduled offence, the explanation clarifies that the property may not need to be only derived or obtained from the scheduled offence but may also be directly or indirectly derived or obtained as a result of any criminal activity relatable to the scheduled offence. The import of the term “relatable to” is extremely wide and has expanded the meaning of the phrase proceeds of crime and also in turn the ambit of the offence of money laundering as provided for in Section 3 of the PMLA.

The Supreme Court in Vijay Madanlal Choudhary held that the definition of “proceeds of crime” in Section 2(1)(u) of the Prevention of Money Laundering Act is common to all actions under the Act, namely, attachment, adjudication, and confiscation being civil in nature as well as prosecution or criminal action. By a further explanatory amendment vide Finance (No.2) Act, 2019, an Explanation was added. The Court observed that the fact that the explanation also includes any property which may, directly or indirectly, be derived as a result of any criminal activity relatable to scheduled offence does not transcend beyond the original provision. In that, the word “relating to” (associated with/has to do with) used in the main provision is a present participle of the word “relate” and the word “relatable” is only an adjective. The thrust of the original provision itself is to indicate that any property is derived or obtained, directly or indirectly, as a result of criminal activity concerning the scheduled offence, the same be regarded as proceeds of crime. In other words, property in whatever form mentioned in Section 2(1)(v), is or can be linked to criminal activity relating to or relatable to scheduled offence, must be regarded as proceeds of crime for the purpose of the Act.

The Supreme Court further held that the definition clause in Section 2(1)(u) of the Prevention of Money Laundering Act includes any property derived or obtained “indirectly” as well. This would include property derived or obtained from the sale proceeds or in a given case in lieu of or in exchange for the “property” which had been directly derived or obtained as a result of criminal activity relating to a scheduled offence. In the context of the Explanation added in 2019 to the definition of the expression “proceeds of crime”, it would inevitably include other property which may not have been derived or obtained as a result of any criminal activity relatable to the scheduled offence. The Court concluded that “As noticed from the definition, it essentially refers to “any property” including abroad derived or obtained directly or indirectly”. This observation of the court reaffirms the extremely wide ambit of the term proceeds of crime for the purposes of PMLA.

The Supreme Court in the same judgement also observed that all properties recovered or attached by the investigating agency in connection with the criminal activity relating to a scheduled offence under the general law cannot be regarded as proceeds of crime. There may be cases where the property involved in the commission of scheduled offence attached by the investigating agency dealing with that offence, cannot be wholly or partly regarded as proceeds of crime within the meaning of Section 2(1)(u) of the Prevention of Money Laundering Act — so long as the whole or some portion of the property has been derived or obtained by any person “as a result of” criminal activity relating to the stated scheduled offence. To be proceeds of crime, therefore, the property must be derived or obtained, directly or indirectly, “as a result of” criminal activity relating to a scheduled offence. To put it differently, the vehicle used in the commission of a scheduled offence may be attached as property in the concerned case (crime), it may still not be proceeds of crime within the meaning of Section 2(1)(u) of the Act. For being regarded as proceeds of crime, the property associated with the scheduled offence must have been derived or obtained by a person “as a result of” criminal activity relating to the concerned scheduled offence. This distinction must be borne in mind while reckoning any property referred to in the scheduled offence as proceeds of crime for the purpose of the Act.

Epilogue

The Supreme Court in Directorate of Enforcement v. Padmanabhan Kishore 2022 SCC OnLine SC 1940 was seized of a curious case where it fell for consideration as to whether a bribe giver can be charged with the offense of moneylaundering.

The Supreme Court held in the context of giving a bribe that so long as the amount is in the hands of a bribe giver and till it does not get impressed with the requisite intent and is actually handed over as a bribe, the money in question would definitely be untainted money. If the money is handed over without such intent (of giving a bribe – i.e. without the requisite mens rea), it would be a mere entrustment. If the money given in entrustment is thereafter appropriated by the public servant, the offence would be of misappropriation or species thereof but certainly not of bribe. The crucial part is the requisite intent to hand over the amount as a bribe and normally such intent must necessarily be antecedent or prior to the moment the amount is handed over. Thus, the requisite intent (or mens rea) would always be at the core before the amount is handed over. If such intent has been entertained well before the amount is actually handed over as a bribe, the person concerned would certainly be involved in the process or activity connected with “proceeds of crime” including inter alia, the aspects of possession or acquisition thereof. By handing over money with the intent of giving a bribe, such person will be assisting or will knowingly be a party to an activity connected with the proceeds of crime. Without such active participation on part of the person concerned, the money would not assume the character of being proceeds of crime. The Supreme Court held that relevant expressions from Section 3 of the Prevention of Money Laundering Act are thus wide enough to cover the role played by such a person. This judgement again shows the centrality of the term proceeds of crime with respect to the offence of money laundering.

In Vijay Madanlal Choudhary, the Supreme Court held that the possession of unaccounted property acquired by legal means may be actionable for tax violation and yet, will not be regarded as proceeds of crime unless the concerned tax legislation prescribes such violation as an offence and such offence is included in the Schedule of the Prevention of Money Laundering Act. As it stands today, no section of the Income- tax Act, 1961, finds itself in the schedule to the PMLA, and therefore based on the judgement of the Supreme Court, it is reaffirmed that not only is it required that the property in question is derived/obtained from an offence but it is equally important that the offence must be included in the schedule to the PMLA.

In summation, for the purposes of PMLA, it is not enough that the ‘proceeds of crime’ are in fact derived/obtained from crime or criminal activity but the criminal activity must also necessarily find itself in the schedule to the PMLA. This seems to be the only explicit restraint and safeguard that has been interwoven into the wording of the statute with respect to proceeds of crime.

 

Prelude

The Finance Minister while presenting the budget for financial year 2016/17 observed as under:

“I had, in my last budget speech mooted the proposal to reduce the rate of Corporate Tax from 30% to 25% over a period, accompanied by rationalization and removal of various tax exemptions and incentives. In any case the, effective rate of tax paid by companies comes to an average of 24.67% because of various exemptions and tax incentives was placed in public domain and we have received a large number of constructive suggestions. The final plan of phasing out exemptions is given in Annexure . The highlights are as follows:-

  1. The accelerated depreciation provided under Income tax Act will be limited to maximum 40% from 01-04-2017.
  2. The benefit of deductions for Research would be limited to 150% from 01-04- 2017 and 100% from 01-04-2020.
  3. The benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31-03-2020.
  4. The weighted deduction under section 35CCD for skill development will continue upto 01-04-2020

The reduction in corporate ta rate has to be calibrated with additional revenue expected from the incentives being phased out. The benefits from phasing out of exemption are available to Government only gradually. In the first phase, therefore I propose the following two changes in corporate income tax rates:-

  1. The new manufacturing companies which are incorporated on or after 01-03-2016 are proposed to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
  2. I also propose to lower the corporate income tax rate for the next financial year of relatively small enterprise i.e. companies with turnover not exceeding Rs. 5 crore (in the financial year ended March 2015), to 29% plus surcharge and ces.

Therefore, the new regime of taxation imposes tax on domestic companies under sections 115BA, 115BAA and 115BAB of the Act at concessional rates after removing certain incentives and deduction.

Further, all these sections start with “Notwithstanding anything contained in this Act”, which mean that the sections are non obstante – means these sections override the other sections of the Act.

Definition

The term company has been defined u/s. 2(17), which means:

  1. any Indian company, or
  2. any body corporate incorporated by or under the laws of a country outside India, or
  3. any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income tax Act, 1922 or
  4. which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970, or
  5. any institution, association or body, whether incorporated or not and whether Indian or non Indian, which is declared by general or special order of the Board. Such institution, association or body shall be deemed to be a company only for such assessment year or assessment years as may be specified in the declaration.

     

1) Tax on income of certain manufacturing domestic companies

Section 115BA has been introduced by the Finance Act, 2016 with effect from Assessment year 2017/18. An option is given to domestic company who is engaged in the business of manufacture or production of any article or thing and research in relation to or distribution of such article or thing to pay income tax @ 25%, subject of fulfilment of conditions mentioned in sub-section (2) of section 115BA,

What is manufacturing

The term “manufacture “ has been defined u/s. 2(29 BA) of the Act. Manufacture with its grammatical variations, means a change in non- living physical object or article or thing:-

  1. resulting in transformation of the object or article or thing into and distinct object or article or thing having a different name, character and use, or
  2. bringing into existence of a new and distinct object or article or thing with a different chemical composition or integral structure.

Thus a new product emerges from the process, it amounts to manufacture.

The Supreme Court in Ujagar Prints v. UOI [179 ITR 317) held that the prevalent and generally accepted test to ascertain whether there is ‘manufacture’ is to find whether the change or services of changes brought about by the application of process take the commodity to point where commercially it can no longer be regarded as the original commodity but is, instead recognized as a distinct and new article that has emerged as a result of the process.

Article or things:

The word “ article and things” are used interchangeable It is submitted that “article or thing” means the same thing as “goods” and would apply to movable property that is capable of being sold or marketed [see page 596 of Kanga and Palkhivala Eleventh Edition]

Conditions

Sub section (2) of section 115BA provides for following conditions:

  1. the company has been set up and registered on or after March 01,2016;
  2. the company is exclusively engaged in business of manufacture or production of any article or things and research in relation to or distribution of such article or thing manufactured or produced by it; and
  3. total income has to be computed without any of the deductions [sixteen in number] mentioned below

     

    1. Any deduction available for companies that have been established in Special Economic Zones u/s. 10AA
    2. Any additional depreciation u/s. 32(1)(iia)
    3. Any investment allowance in new Plant and Machinery u/s. 32AC
    4. Any investment allowance in new plant or machinery in notified backward area in certain states u/s. 32AD
    5. Any deduction in Tea, Coffee or rubber development account u/s. 33AB
    6. Any deduction under Site Restoration fund u/s 33ABA
    7. Any deduction for expenses towards Scientific Research on any amount provided to research institution, university, collage etc. u/s. 35(1)(ii)
    8. Any sum paid to a company for scientific research u/s. 35(1)(iia)
    9. Any sum paid to a research association, college or other institution which has as its object the undertaking of research in social science or statistical research u/s. 35(1)(iii)
    10. Any sum paid to a National Laboratory or a university or an Indian Institute of Technology or other specified person with a specific direction that it shall be used for scientific research undertaken under a programme approved by the prescribed authority u/s. 35(2AA).
    11. A company engaged in the business of bio technology or in any business

      of manufacture o production of any article or thing (other than article or thing specified in Eleventh Schedule) incurs any expenditure on scientific research.(not being expenditure in the nature of cost of any land or building) on in-house research and development facility as approved by the prescribed authorities u/s. 35(2AB).

    12. Any expenditure on eligible projects or scheme u/s. 35AC.
    13. Any deduction in respect of expenditure on specified business u/s. 35AD
    14. Any expenditure on agricultural extension project u/s. 35CCC.
    15. Any expenditure on skill development project u/s. 35CCD and
    16. Any deduction as per Chapter VIA on certain income other than the provisions of S. 80JJAA i.e. deduction in respect of employment of new employees.

Section 115BA( 2) (ii) also prohibits to set off any loss carried forward from earlier assessment year in respect of any of the deductions referred to above and the aforesaid loss shall be deemed to have given full effect, and no further deduction for such lose shall be allowed for any subsequent year.

Notwithstandng the above disallowance of deductions other allowances and deductions provided in the Act are allowable.

Option

The company has to choose the option of taxation u/s 115BA either on or before filing the first of the return of income u/s. 139(1) of the Act in Form No. 10IB Once the option is exercised for any previous year, it cannot be withdrawn except it opts to pay tax u/s 115BAA (i.e. @ 22%)

Tax on income of certain domestic companies Section 115BAA has been introduced by the Taxation Laws (Amendment) Act, 2019 with effect from April 01, 2020 i.e. from assessment year 2020/21. This section is similar to section 115BA and is applicable to all domestic companies irrespective of their nature of business and date of set up . Domestic companies can opt to avail the concessional rate of tax @ 22% subject of restrictions set out in sub section (2). These restrictions are similar to section 115BA (except S. 32AC i.e. Investment in new Plant and machinery installed before March 31,2017 and section 35AC i.e. expenditure on eligible projects or scheme, incurred before March 31, 2018, since section 115BA was applicable from assessment year 2017/18, wherein those sections were applicable.

Alike section 115BA no deduction is allowable under chapter VIA except section 80JJAA i.e. deduction in respect of employment of new employees and section 80M i.e. deduction respect of certain inter-corporate dividend

Likewise, no loss carried forward from any earlier assessment years in respect of prohibited deductions be allowed to set off and the aforesaid loss shall be deemed to have given full effect. Even in case of amalgamation or demerger of companies no loss shall be allowed to set off in respect of any of the prohibited deductions.

Similar to section 115BA in this section also the company shall have to exercise the option for lower rate of tax before filing the return of income u/s. 139(1) of the Act in Form No. 10IC and such option once exercised shall apply to subsequent assessment years. Further, once the option has been exercised it cannot be withdrawn for the same or any other previous year. However If option is exercised u/s. 115BAB but has been rendered invalid due to violation of certain conditions specified in that section, then the assessee may excise the option under this section.

Further sub section (4) of section 115BAA provides for a deduction that if a company having unit in the International Financial Services Centre, then such company shall be entitled to deduction u/s. 80LA under chapter VIA.

Taxation on Income of new manufacturing domestic companies

Introduction:

Section 115BAB also has been inserted by the Taxation Laws (Amendment) Act 2019 with effect from April 01,2020 i.e. from assessment year 2020/21, Under this section, the income tax payable in respect of total income of domestic company shall at the opinion of the company be @ 15% if the conditions contained in sub section (2) are satisfied.

Conditions to be fulfilled:

As per sub section (2), the following conditions are to be complied with, otherwise option would be invalid:

    1. The company has been set up and registered on or before October 01,2019 and has commenced manufacturing or production of an article or thing on or before March 31,2024.
    2. Further, the business is not formed by splitting up or the reconstruction, of a business already in existence, However, this condition shall not apply in respect of a company, business of which is formed as a result of re-establishment, reconstruction or revival of the business of such undertaking as referred to in section 33B in the circumstances and within the period specified in the said section.
    3. Does not use any machinery or plant previously used for any purpose. The Explanation clarifies that any machinery or plant which was used outside India by any other person shall not be regarded as machinery or plant previously used for any purpose, if following conditions are fulfilled.
      1. Such machinery or plant was not, at any time previous to the date of the installation used in India;
      2. Such machinery or plant is imported into India from any country outside India, and
      3. No deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under the provisions of this Act in computing the total income of any person for any period prior to the date of the installation of machinery or plant by the Company.

However, where in the case of a person any machinery or plant or any part thereof previously used for any purpose put to use by the company and the total value of such machinery, plant or part thereof does not exceed 20% of the total value of the machinery or plant used by the company, then, for the purpose of this clause, the condition specified therein shall be deemed to have been complied with.

  1. Does not use any building previously used as a hotel or Convention Centre, as the case may be, in respect of which deduction u/s. 80ID has been claimed and allowed. The expressions ‘hotel” and “Convention Centre” shall have the meaning respectively assigned to them in clause (a) and clause (b) of sub section (6) of section 80D.
  2. The company is not engaged in any businesses other than the business of distribution of, such article or thing manufactured or produced by it. For

this clause business of manufacture or production of any article or thing shall include the business of generation of electricity. Further, it is hereby clarified that the business of manufacture or production of any article or thing shall not include business of:

  1. Development of computer software in any form or in any media;
  2. Mining;
  3. Conversion of marble blocks or similar items into slabs;
  4. Bottling of gas into cylinder;
  5. Printing of books or production of cinematograph films; or
  6. Any other business as may be notified by the Central Government of India in this behalf.
  7. The total income of the company has been computed without any deduction mentioned u/s. 115BA(2) and u/s. 115BAA (2) except deduction u/s. 80JJAA or section 80M of chapter VIA.
  8. Without set off of any, loss or allowance for unabsorbed depreciation so u/s. which is attributable to any of the deduction referred to sub section (2) of section 115BA and sub section (2) of section 115BAA and loss shall be deemed to have been given full effect to and no further deduction for such loss shall be allowed in. Even in case of demerger or amalgamation u/s. 72A, position remains the same.
  9. Further, it is clarified that in case of an amalgamation option to opt for taxation under this section shall remain valid in case of the amalgamated company only if the conditions mentioned above are complied with.

Check on Inflated Claims:

If it appears to the Assessing Officer that owing to the close connection between the person to which this section applies and any other person, or for any other reason the course of business between them is so arranged that the business transacted between them produces to the person more than the ordinary profits which might be expected to arise in such business, the Assessing Officer shall, in computing the profits and gains of such business for the purposes of this section, take the amount of profits as may be reasonably deemed have been derived. Further the amount being profit in excess of the amount of the profits determined by the Assessing Officer, shall be deemed to be the income of the person and shall be taxed @ 30%.

Further more, it is provided that in case the aforesaid arrangement, involves a specified domestic transactions referred to in section 92BA, the amount of profits from such transaction shall be determined having regard to Arm’s length price as defined u/s. 92F(ii).

Option to be exercised

This section shall apply only the option is exercised by the company in the Form No. 10ID on or before the due date specified u/s. 139(1) for furnishing the first of the returns of income for any previous year commencing from assessment year 2020/21; and such option once exercised shall apply to subsequent assessment years. Further once the option is exercised for any previous year it cannot be withdrawn for the same or any other previous year.

No benefit u/s. 80LA

Unlike section 115BAA this section does not provide any benefit to a unit established in the International Financial Services Centre as referred to in section 80LA(1A), for the Services Centre as referred to in S. 80LA(IA), for the reason that no manufacturing or production unit can be established in the International Financial Service Centre.

Miscellaneous

Further section clarifies the following points:

  1. Where the total income of the company includes any income which has neither been derived from nor incidental to manufacturing or production of an article or thing in respect of which no specific rate of tax has been prescribed separately under this chapter, such income shall be taxed @ 22% and no deduction or allowance in respect of any expenditure or allowance has specified u/s 115BAA(2) shall be allowed in computing such income.
  2. In respect of income being short term capital gain derived from transfer of a capital asset on which no depreciation is allowable under this Act shall be computed @ 22%.
  3. For the purpose of section 115AA and this section the expression “unabsorbed deprecation” shall have the meaning assigned to u/s. 72A(7)(b) of the Act.
  4. If any difficult arises regarding fulfillment of the conditions, the Board may with approval of Central Govt. issue guidelines for the purpose of removing the difficulty and to promote manufacturing or production of article or thing using new plant & machinery
  5. Every guidelines issued by the Board shall be binding on the company and income tax authorities.

Conclusion

Thus from, the above it is clear, that as per intention of the Government, the Finance Minister has reduced the tax rate but removed certain incentives and deductions.

 

Income-tax, as the name suggests, is a tax on income. But, what is income is not defined in the taxing statute. Though the Income-tax Act, 1961 (‘the 1961 Act’) sets out certain provisions as to particular kinds of receipts that should be excluded or included and as to the methods of computing income, the word itself has not been exhaustively defined. Rightly so, as the word ‘income’ for a taxing legislation, cannot have a definitive or static meaning. As to the nature of income, we have to seek guidance from judicial pronouncements, which again are based largely on commercial usage. Commercial usage, unfortunately, is not altogether a reliable guide; and in practice there is no more baffling problem that faces a Commercial Accountant than the allocation of items as between Capital and income1.

This article tries to examine one of the colors of income, namely ‘perquisites’2. Over the years, taxation of perquisites arising to an employees have largely attained definitive meaning, thanks to the elaborate valuation rules. But taxation of perquisites received in the course of carrying on business have not been subjected to greater judicial review, though express charging section existed since 1964. The reason therefor being absence of a robust reporting mechanism for perquisites given in the course of trade. The introduction of Section 194R to the 1961 Act, and the larger consequences of non-deduction of tax has necessitated to understand the meaning of the word ‘perquisite’ in a greater detail.

Historical perspective on taxation of perquisites

The usage of the word ‘perquisite’ dates from feudal times, and meant casual income arising to a feudal chief3. In taxing statutes, perquisites that arise in the course of employment have been legislatively considered as ‘income’ (in the nature of salary) atleast since 1842. Schedule E read with Rules to Schedule of British Income- tax Act, 1842 read as under

Sh E – upon every public office or employment of profit, and upon every annuity, pension or stipend, payable by the Crown

Rule 4 – Perquisites to be assessed under the Act shall be deemed to be such profits of offices, payable by the Crown

The Indian Income-tax Act, 18604 and Indian Income-tax Act, 18865 too contained a similar charging provision. The 1860 Legislation, in Section 3(4) specifically defined ‘salary’ to include allowances, fees, commission, perquisites, or profits received from employment.

It seems perquisites arising from employment have always been treated as income in the nature of salary. However, disputes arose on taxability of such perquisites, due to peculiar wordings of the charging section. Section 8 of the British Customs and Inland Revenue Act, 1876 provided for taxing of perquisites. The Corresponding Section 6(1) of the Indian Income-tax Act, 1918 read as under

Sec. 6- Tax shall be payable in respect of any salary or wages, any annuity, pension or gratuity, and any fee, commission or perquisite received by him in lieu of or in addition to any salary or wages, paid by the Government

Section 3(2)(x) of the 1918 Act also expressly exempted from taxation, “any perquisite or benefit which is neither money, nor reasonably capable of being converted into money.”

Where a rent free accommodation was provided by a Bank to its employee, the House of Lords in Tennant v Smith (Surveyor of Taxes)6 [while interpreting Section 8 of the British Customs and Inland Revenue Act, 1876] inter alia held that, though the benefit provided to an employee is a perquisite, it cannot be subject to tax as the perquisite is not “paid” by the Government. The judgment lead to a series of amendments to taxing statutes across Britain and her colonies.

When the Indian Income-tax Act, 1922 was enacted, Section 3(2)(x) of the 1918 Act was omitted, with the object of bringing to tax perquisites that are not convertible into money. The Report of the Joint Select Committee on the Income-tax Bill, 1922 that lead to the 1922 Act, acknowledged the need of the amendment ‘in order to avoid inequalities in assessments’, The Statement of objects and reasons of 1922 Act, in relation to omission of Section 3(2)(x) of the 1918 Act read as under

“… the existence of this provision [S.3(2)(x)] makes it impossible under the present law to assess. to income-tax rent-free residences in cases where the asséssee has not the power to sub-let, while rent-free residences are liable to the tax where the assessee has the power to sub-let..”

However, the 1922 Act did not amendment the charging section which even under the new law, permitted taxing salary “paid” to an employee. There was no specific charging section to bring perquisites into taxing net either. The section as introduced in 1922 read as under

“Sec. 7(1)- Tax shall be payable in respect of any salary or wages, any annuity, pension or gratuity, and any fee, commission or perquisite received by him in lieu of or in addition to any salary or wages, paid by the Government

Sec 4(3)(vi) – Act shall not apply to special allowance, benefit or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of employment

For the first time, by the Income-tax Amendment Act, 1923, provision of Rent Free Accommodation was specifically treated as ‘perquisite’ for the purpose of taxation of salary [by introduction of Explanation to Section 7(1) of the 1922 Act]. This still did not overcome the problem of salary being subject to tax, only when it is paid.

It was only in 1939 that the Act was comprehensively amended to tax any salary (including perquisite) “due to him, whether paid or not”. Even then, the only perquisite that was subject to taxation in India was rent free accommodation provided to an employee.

The Income-tax Enquiry Committee of 1954, in its report made the following recommendation

Currently, only rent free accommodation is being subject to tax. All other benefits should also be brought to tax on the principle of equity. However, considering the harassment that tax payers would suffer, benefits and perquisites received by directors, and persons earning more than Rs 24,000 alone be taxable.

This lead to a comprehensive substation of provisions relating to taxation of salary by the Income-tax Amendment Act, 1955, and introduction of an inclusive definition of ‘perquisite’.

Interestingly, all these changes concerned taxation of income under the head salary alone. There was no specific provision to taxa perquisites gained by a person carrying on business or profession, perhaps as there was no need for one. In 1964, Section 28(iv) was introduced in the 1961 Act to expressly provide for taxation of value of any benefit or perquisite arising from business or profession carried on by a person. By the Finance Act, 2022, Section 194R of the 1961 Act was introduced, casting an obligation on the person providing the benefit or perquisite to deduct tax at source on the value of the benefit or perquisite.

Meaning of ‘perquisite’

As the word ‘perquisite’ has, for a large part of the history, been associated with taxation of income arising from employment, dictionaries and judgments explain the meaning of the word from the perspective of an employee, more particularly of an individual. According to Murray’s Dictionary, the word means “any casual emolument, fee or profit attached to an office or position in addition to salary or wages”.

Both monetary and non-monetary benefits, over and above the monetary remuneration would be regarded as a perquisite. The fact that the perquisite is agreed to in the terms of engagement would not change its character.

As in the case of income, the word perquisite cannot be subjected to a statutory definition. Anything that denotes a personal advantage, that benefits a man by going “into his own pocket” would be regarded as a perquisite.

A motor car provided by a client to a professional engaged by the client, to commute between the place of residence and work, is not something which is provided in the performance of duties as held in Andrews v. Astley7, and would be regarded as perquisite within its ordinary meaning.

Often questions arise, when a Chartered Accountant or an Advocate is asked by a client to travel to a place away from his usual place of work, for undertaking the client’s work and the expenses of the travel are borne by the client, would they be regarded as a benefit extended to the Chartered Accountant or the Advocate. Useful reference can be made to the explanation of Rowlatt, J of Court of Appeals in Ricketts y..Cvlquhoun8, though the question related to examination of taxing rules from a slightly different perspective. The claim of Mr Ricketts, an advocate practicing in London, for a deduction for expenses to travel to Portsmouth to discharge his duties as Recorder of Portsmouth, was denied on the ground that the expenses were not incurred in performance of his duties. The Court made the following observation when denying the deduction.

“A man must eat and sleep somewhere, whether he has or has not been engaged in the administration of justice. Normally he performs those operations in his own home, and if he elects to live away from his work so that he must find board and lodging away from home, that is, by his own choice, and not by reason of any necessity arising out of his employment ; nor does he, as a rule, eat or sleep in the course of performance of his duties….”

From the natural meaning of the word ‘perquisite’ and the interpretation given by the various Courts, the salient features of perquisites include the following:

  1. It is a benefit, amenity or profit in addition to regular fixed payment
  2. It is a privilege, gain, or incidental profit
  3. It should have monetary value
  4. The recipient get a right to use the benefit as per own terms
  5. The benefit may or may not be convertible into money

Seasonal gifts, casual accommodations (even on professional engagement), discounts or special concession, can all constitute perquisites in their ordinary meaning. In First ITO v. G. Delaforge9, providing food during official duties was also regarded as perquisite.

Difference between ‘perquisites’ and ‘benefits’ From a perusal of legislative history of the words, it appears that ‘benefit’ and ‘perquisite’ are used as a pair of words, without there being any intelligible difference between them. While Section 3(2)(vi) of 1918 Act grants certain benefits to “benefit or perquisite”, Section 3(2) (ix) extended the exemption to “perquisite or benefit”. In some other instances, perquisites is defined to include a benefit. The words have thus been used synonymously or a pair of words.

Valuation of perquisite for the purpose of Section 28(iv)

There are no provision under the 1961 Act to determine value of benefits for perquisite for the purpose of S. 28(iv) or 194R. Rule 3 of the 1961 Rules which provides for valuation of perquisites arising in the course of employment, are artificial rules, and would not apply to Section 28(iv) of the 1961 Act. As a general rule, assessable value would be the benefit personally derived estimated in monetary terms and not the price which other persons might be prepared to pay10.

When a director gifted suits to its employees on the occasion of Christmas, the Revenue treated the purchase price of the suits to be the value of perquisite for the employees. The House of Lords held the value of perquisite would be the price which the taxpayer would get for the suits in the open market, if he sold it immediately and not the purchase price or the retail price11.

The Federal Court of Australia in Donaldson v. FCT [1974]12 held that, where what is given is freely transferable, its value may be found by determining what a willing but not anxious purchaser might pay for it.

If benefits cannot be resold (flight tickets, club memberships), as held in Abraham v. Federal Commissioner of Taxation13, followed in Rathinasabapathy Chettiar v. Commissioner Of Wealth-Tax14, ordinary market value has to be taken, assuming that the benefits are transferable.

Withholding tax obligation on perquisites provided

Any taxable perquisites provided to an employee have always been subject to deduction of TDS under Section 192 of the 1961 Act. The scheme has been in operation for more than five decades. Though standard perquisites have been subject to withholding tax, many employers do not practically examine as to whether many a benefits extended to employees are infact taxable perquisites.

Section 194R of the 1961 introduced by the Finance Act 2021 has created a new obligation on persons providing perquisites to deduct tax on the value of the perquisites provided. Being a new obligation, its practical applicability have raised many a questions. In exercise of powers granted under sub-section (2) of the Section, the Central board of Direct Taxes have issued certain guidelines on operation on the Section. Though these are statutory guidelines, they cannot go beyond what the Act says, but would definitely be binding on issues not governed by the Act (including matters relating to judicial interpretation. A few practical issues arising on applicability of the section have been examined below

  1. Value on which tax is to be deducted – For the purpose of Section 194R of the 1961 Act, the Central Board of Direct Taxes, vide Circular No. 12 of 2022 dated 16.06.2022 specifically provides that, where the perquisites are bought out, the value for the purpose of the section would be the cost incurred. The common law explained in the earlier paragraphs would apply where the perquisites are not bought out, as well as in the case of taxation in the hands of the person receiving the benefit. Certainly, the value for the purpose of TDS need not be value for the purpose of taxation in the hands of the recipient.
  2. Manner of deduction of tax – Where the perquisite is in the form of cash or cash equivalent (say gift cards), tax can be deducted on the value of the perquisites. If the perquisite is wholly in kind, the person providing the benefit can (a) deduct the equivalent value of tax from other consideration payable to the person receiving the benefit (if any), (b) bear the tax cost (in which case, the value of consideration would have to be grossed up), (c) Require the person receiving the benefit to deposit the quantum of TDS (in the manner provided in the Circular).
  3. Deduction on deemed benefits/ debts written off – If a trading liability was allowed as a business expense, it would ordinarily not become income upon its remission, as held by the Bombay High Court in Mohsin Rehman Penkar v. CIT15. To overcome this judgment, Section 10(2A) was introduced in the 1922 Act vide Finance Act, 1955 to deem such remission as income. The provision continues as Section 41(1) of the 1961 Act. When a businessman, due to commercial expediency, writes off a debt resulting in a notional income to the debtor, the creditor cannot be regarded as having ‘provided’ a perquisite to the debtor. The section also requires the person providing the benefit to deduct tax before providing/ releasing the benefit. The term “provide” or “release” has not been defined in section 194R of the 1961 Act. The requirement of deducting tax before releasing an income was first introduced in Section 194B of the Act, by the Finance Act, 1997. The context in which the term “provide” and “release” have been used in section 194R of the Act clearly contemplates there should be some positive action on the part of the person providing the benefit/perquisite resulting in something tangible being transferred from the person providing the benefit to the debtor. In the absence of a “provision” of a benefit, nor a “release”, TDS under Section 194R would not apply on write off of debts.
  4. Applicability of business to consumer transaction – Section 194R of the 1961 Act applies to any perquisite provided to a person carrying on business or profession. If the consumer of the product is a businessman or a professional, the section would apply. To illustrate, if a tractor manufacturer extends certain benefits to a farmer [say free tyre replacement for being the 100th customer for the year], provisions of Section 194R would apply so long as the farmer is carrying on farming as a business, irrespective of the fact that the farmer is a final consumer, nor that the income of the farmer might not liable to tax.
  5. Applicability on loyalty points – Loyalty points or reward points merely acts as a discount on whatever property or services are being purchased by the consumer. They would by themselves not be regarded as income [Shankar v. Commissioner16]. A US Tax Court has however recently in Konstantin Anikeev v. Commissioner17 held that in certain instances, cash backs can be regarded as income accruing to the person earning the points. Certainly, when the points are redeemed by a businessman or a professional, the value of the goods received would be subject to TDS.

Items which represent business income of the recipient would also be subject to deduction of tax under this Section.

  1. The Law of income Income-tax in India, V S Sundaram, 6th edition, 1947, page 1
  2. For reasons given in the latter part of this article, the words ‘benefits’ and ‘perquisites’ are interchangeably used in the statute, and do not have a distinct meaning.
  3. The Law of income Income-tax in India, V S Sundaram, 6th edition, 1947, page 481
  4. Schedule 4 of Indian Income-tax Act, 1860, read with Part X of the Rules
  5. Section 4 read with Second Schedule and Section 3(4) of Indian Income-tax Act, 1886
  6. [1892] AC 150
  7. [1924] 8 TC 589
  8. 10 TC 118
  9. [1991] 38 ITD 528 (Bombay ITAT):
  10. Tennant v. Smith [1892] A.C. 150
  11. Abbott v. Philbin (Inspector of Taxes) [1959] 3 W.L.E. 739 and Wilkins (Inspector of Taxes) v Rogerson [1961] 2 W.L.R. 102
  12. 4 ATR 530
  13. 70 C.L.R. 23 High Court of Australia
  14. [1974] 93 ITR 555 (Mad)
  15. [1948] 16 ITR 183 (Bom)
  16. 143 T.C. 140 (2014)
  17. [2021] 127 taxmann.com 612 (TC- US),

Friends,

After the historic Independence Day celebration by the AIFTP wherein more than 150 programmes were organized throughout India. We had another historic programme being organized at New Delhi. It was a great moment for us that one of our member Hon’ble Mr. Justice Ujjal Bhuyan had been elevated as the Judge of the Hon’ble Supreme Court of India. This year we had seen that two of our Members had been elevated as the Judge of the Hon’ble Supreme Court of India.

We had a felicitation function organized at New Delhi on 18th August, 2023 by the AIFTP Northern Zone at the Indian Law Institute, New Delhi. The said programme was attended by around 200 Members. We got the opportunity of felicitating Hon’ble Mr. Justice Ujjal Bhuyan, Judge, Supreme Court of India. He in his speech remembered about the events attended by him earlier of AIFTP and also remembered the close association with our Past President Dr. Ashok Saraf and the advice and blessing received by him earlier when he was appointed the Judge of Gauhati High Court from Hon’ble Mr. Justice B. P. Saraf Sb. Special thanks for organizing this felicitation function to Mr. K. C. Kaushik. My gratitude to the AIFTP, Northern Zone Chairman Mr. O. P. Shukla and all other Members who had worked hard to make the programme a grand success.

A grand event was organized by way of National Tax Conference and NEC meet at Shirdi by the AIFTP Western Zone under the leadership of Mr. Vinayak Patkar. A wonderful conference was organized with participation of more than 200 persons and a gathering from all over Maharashtra and Gujarat in addition to other parts of India on 21st and 22nd August 2023. My congratulations to the AIFTP, Western Zone and Mr. Ashwin Acharya for it. Special efforts and working being done by Mr. Vinayak Patkar and special efforts of the Past President Mr. M. Srinivas Rao are appreciated. Thanks to all the Co-organisers for it. The Darshan at the Shirdi was organized in a flawless manner and everybody got good darshan.

At Rourkela a grand National Tax Conference was organized by the AIFTP, Eastern Zone along with Rourkela Tax Bar Association and 26th and 27th August, 2023. It was a grand success with participation of more than 250 delegates. The Conference was inaugurated by Hon’ble Mr. Justice Subhashish Talpatra, Chief Justice, High Court of Orissa and Hon’ble Mr. Justice Chittranjan Das, Judge, High Court of Orissa as the Guest of Honour. Special congratulations to Conference Chairman Mr. Subhash Agarwal, Vice Chairman Mr. Dilip Agarwal, Mr. P. K. Rout, Mr. Manoj Agarwal and all other who had worked actively for the success of the Conference. Congratulation to Mr. Vivek Agarwal, National Vice President, Eastern Zone and Mr. Basudeb Chatterjee, Chairman, Eastern Zone for another wonderful event. The technical sessions on GST and Income Tax were amazing and superb.

The AIFTP, Northern Zone Chairman Mr. O. P. Shukla and other Members of AIFTP met with Smt. Nirmala Sitaraman, Union Finance Minister on 27th August, 2023 and submitted representation on GST, Income Tax and other allied laws. The meeting to place at Varanasi.

Grand RRC was organized at Vrindavan by the AIFTP, Northern Zone under the leadership of its dynamic and vibrant Chairman Mr. O. P. Shukla. The RRC Chairman Mr. Manoj Sharma and the Team worked hard to make the Vrindavan RRC a grand success. Darshans of all Mandir including Bankebihari Ji was done. Prasad was given to all. It was always a dream that the event of AIFTP should be held at Vrindavan and it was finally done on 2nd and 3rd of September, 2023. On the second day the technical session was organized and Mr. Adish Agarwala, Advocate and President, Supreme Court Bar Association was the Guest of the Honour. In the technical sessions the issues regarding GST and Income Tax was discussed. In the evening cultural event was organized. Congratulation to the Team of AIFTP, Northern Zone for this wonderful event.

Many more programmes are planned and the forthcoming list of the programme is available on the website. We look forward to your continuous participation in all the programmes. We also look forward to ensure that new Members are made and the circular / information regarding the new Members is circulated in all Professional groups.

We are also planning to organized the foundation day of AIFTP i.e. on 12th November, 2023 in a grand manner and as a foundation month of AIFTP. Accordingly, it is decided that November, 2023 would be deemed as foundation month of AIFTP and all programmes relating to AIFTP will be organized in this month.

We request all Zones to planned the programmes in Foundation month and ask all Members to celebrate the Foundation Day and Month of AIFTP in grand manner and to fly the flag of AIFTP on their houses and send the photo so that we can have a collection of it.

Friends, we have seen that the information of the Members is incomplete and therefore, we are working on updating our records and the Directory. We are getting the data’s from the Members by calling them and we had also devised way and sending mail directly to Members with their Data to verify the same. Support is requested from the Members to see the mail and to verify the Data, so that we may be in regular touch with you.

We look forward to active participation of the Members and also request. In case Members are having suggestions then the same may kindly be informed by sending mail at [email protected] or WhatsApp to the undersigned.

Regards,

Pankaj Ghiya

National President

Dear Members

WISHING ALL A VERY HAPPY GANESH CHATURTHI

Season of festivals are here with arrival of Ganpati Bappa. May lord Ganesha keeps you and your family and dear ones in Good Health, Prosperity and Happiness.

The CBDT in its very recent Press Release dated 5.9.2023, has informed that as of now more than 6 crore ITRs of AY 2023-24 have been processed resulting in processing of over 88% of the verified ITRs. The Press Release also mentions that more than 2.45 crore refunds for AY 2023-24 have already been issued. The Press Release further stated that in line with the Department’s efforts to provide seamless and expeditious taxpayer services, average processing time of ITRs (after verification) has been reduced to 10 days for returns filed for AY 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022- 23. The efforts are commendable.

However, adjustment made in intimation u/s. 143(1), non-passing of order giving effect to appellate authorities, non-processing of rectification application, refund adjustment without intimation etc are few areas which needs improvement and CBDT needs to act on the same.

Similarly matters held up at first appeal level is a matter of serious concerns. Matters where all pleading are completed are not taken up for years together, however repeated notices are issued to file submission and papers, which only show non application of mind and causal approach. Pendency of matters at First Appellate authority since last 3 years needs immediate attention of authorities.

These matter can be effectively disposed if department can segregate the matters; Few suggestions :

  1. All old appeal should be given priority. And should be red flagged. It is in interest of department that such matters should be disposed at earliest.
  2. Senior citizen matters should also have priority of hearing.
  3. All matters wherever additional evidence or additional grounds are filed the same may be referred to JAO for remand report
  4. Where ever all pleadings are completed provide hearing opportunity and conclude the hearing. Otherwise automatic stay of demand should be granted
  5. Appeals having single grounds of appeal/ issue, may be assigned for hearing.
  6. Appeal involving low tax effect, appeals against rectification order, intimation etc may be taken up.
  7. Penalty appeals can be fixed only after disposable of quantum appeal. Preferably department can get matters lined up in such manner.
  8. Matters involving important questions of law or having larger public interest can be dealt separately providing sufficient time to professional to place various facets of contentions by providing sufficient effective hearing.

This month journal consists of very interesting articles on audit and expert views on various other topics, hope readers shall enjoy reading the same. I also request our esteem readers to provide feedback and suggestions if any.

Jai Hind

Ajay R. Singh

Editor

Sr. No. Name of Members Profession Zone
1 Vaibhav N. Kalbhairav CA. South
2 Sudharani G. E. GSTP. South
3 Mahesh Patil TP. South
4 Keshava M. GSTP. South
5 J. Mahadev Prasad Adv. South
6 Vinay Samuel TP. South
7 Monish P. GSTP. South
8 Ambresh Motikar GSTP. South
9 Ambadas Ankalkar Adv. South
10 Girish Heralgi GSTP. South
11 Aravind Minajagi GSTP. South
12 Vivekanand Hundekar Adv. South
13 Santosh Aleri GSTP. South
14 Vishal Nagathan GSTP. South
15 Anup Maigond GSTP. South
16 Dr. K. Mohanan Nambiar CA. South
17 Dwarakesh S. CA. South
18 Manoj Ayachit CA. Central
19 Gaurav Kumar Gupta CA. North
20 Mukul Ranjan Giri TP. East
21 Kinshuk Jain Adv. Central
22 Ritu Mahajan CA. North
23 K. K. Singla Adv. North
24 Vivek Agarwal CA. North
25 Abhishek Agarwal CA. North
26 Durgadas C. GSTP. South
27 Amit Goyal Adv. North
28 Ankush Jain Adv. North
29 Sujala M. B. GSTP. South
30 Ramanjan Bhattacharyya Adv. East
31 Anil Kumar Israni CA. North
32 Santosh Kumar Gupta Adv. Central
33 Vikrant Reja Adv. Central
34 Sonal Gupta Adv. Central
35 Rama Kanta Nayak CA. North
36 Pratik Sharma Adv. Central
37 Shubham Teotia CA. North
38 Sujishma K. U. GSTP. South
39 Prateek Tyagi Adv. North
40 Sachin Dudeja Adv. North
41 Om Bansal GSTP. Central
42 Jitendra Kumar Jena Adv. East
43 Jatin Arora Adv. West
44 Ashish Kumar Khandelwal Adv. Central
45 Sanjay Kumar Lakhani Adv. North
46 Mukesh Kumar Lakhani Adv. North
47 Kamal Bajaj Adv. North
48 Anurag Asati Adv. Central
49 Niraj Modi Adv. East
50 Bhavesh Patel GSTP. West
51 North Maharashtra Tax Practitioners Association Association West
Sr. No. Name of Members Profession Zone
1 Santosh Ambanna Hatti T.P West
2 Pranay Sharma Y. Adv. South
3 Rajgopal N. Chandak T.P West
4 Aditya R. Chandak CA. West
5 Garvit G. Paliwal CA. West
6 Ramakant Sharma Surelia Adv. East
7 N. Dhanakotti T.P South
8 Amol Manan Parikh CA. West
9 Abhishek Gupta Adv. North
10 Association Of Tax Practitioners Association South
11 Tarun Kumar Sharma Adv. North
12 Rana Kumar Dutta Adv. East
13 Chiranjeevi Matcha GSTP South
14 Jawhar Lal Nandi Adv. East
15 Y. Sridhar CA. South
16 S. Jaikumar Adv. South
17 Antaryami Sahu GSTP East
18 Pampa Sen Adv. East
19 K. Thirunavukkarasu CA. South
20 Kalpesh Bhupendrabhai Soni GSTP West
21 Sureshkumar Ishwarbhai Prajapati GSTP West
22 Ashwani Tiwari GSTP North
23 Abhijit Ray Adv. East
24 Nidhi Rathi CA. South
25 Seethalakshmi A. CA. South
26 Suresh C. Agrawal CA. North
27 Gaurav Kumar Srivastava CA. North
28 Ankur Srivastava Adv. North
29 Paras Sharma Adv. North
30 Abhishek Sharma Adv. North
31 Sham Walve Adv. West
32 Suresh J. Adv. South
33 Vrushabhnath D. Shetti CA. South
34 Yashvant Nijagal CA. South
35 Sri Krishna Patel CA. South
36 R. Prasanna Kumar CA. South
37 Rahul R. Gandhi CA. South
38 Prasad Sholapurmath CA. South
39 Abhilash P. Lapasia CA. South
40 Anil Iranna Ramdurg CA. South
Sr. No. Name of Members Profession Zone
1 Rajiv Kumar Bagga Adv. North
2 Utsav Hirani CA. West
3 Ayyappa Chede T.P. South
4 Jitendra Motwani CS. Central
5 Mamta Kedia Adv. East
6 Ravi Khandelwal CA. Central
7 Shilpa Yuval Mangaonkar CA. West
8 Krishna Kumar Adv. North
9 Alisha Jain CA. North
10 Pushparaj Thambu GSTP South
11 Rajesh Kumar Mishra Adv. East
12 Chandra Prakash Sharma GSTP Central
13 Sohanlal Sampatlal Barmecha GSTP West
14 Santosh Sagar Kapilavai Adv. South
15 Bidhan Chandra Rai Adv. North
16 Nikhil Sunil Deshmukh Adv. West
17 Shanti Swarup Gupta CA East
18 Sushil Kumar Dhanuka Adv. East
19 Subhash Kumar Dhanuka Adv. East
20 Girish Vakharia CA. East
21 Mohit Bhuteria CA. East
22 Mahak Bhuteria CA. East
23 Rajendra Bhutra CA. East
24 Anshuma Rustagi CA. East
25 Ashish Rustagi CA. East
26 Ashok Kumar Parakh Adv. East
27 Ashish Kumar Agrawal CA. Central
28 Dinesh Bishnoi Adv Central
  Shantanu Kumar Bhua Adv East
29 Vikram Ranganathan CA. South
30 Subhomay Das Adv. East
31 Nitesh Soni CA. East
32 Shreya Loyalka CA. East
33 Jeyam Prathap S. Adv. South
34 Madhusudhan Dutta Adv. East
35 Sumit Jha Adv. West
36 Krishan Garg CA. Central
37 Aman Suman Pirgal GSTP South
38 Tushar Gupta Adv. North
Sr. No. Name of Members Profession Zone
1 Ashish Bakliwal CA. West
2 Tarun Kumar Gupta CA. East
3 Subash Chandra Behera Adv. East
4 Manish Lohia CA. North
5 Prathik Jain B. GSTP South
6 Jaya Babu Devuri Adv. South
7 Mritunjay kumar Adv. East
8 Gyanendra Kumar Singh Adv. East
9 Girijesh Sharma   North
10 Ramendra Lal Auddy Adv. East
11 Rajesh Kumar Kankaria CA. East
12 Prasanta Kumar Dutt Adv. East
13 Tarak Chandra Saha Adv. East