Beloved Brothers and Sisters in the AIFTP family,

All my learned and affectionate brothers and sisters in AIFTP family and friends in the profession. At the outset, we would be happy and delighted to convey our heartiest and respectful wishes and greetings to all of you on the eve of Merry Christmas followed by New Year 2017 and Sankranti festival. We sincerely wish everyone to be joyful and happy on the three occasions with all health, wealth and prosperity in abundance. We also wish that every learned member of AIFTP family would have many more value additions in the coming year to their professional and legal knowledge through active and continual participation in various educational imparting conferences and seminars.

Friends with the wholesome and collective assistance, guidance and co-operation from everyone of you, despite a short tenure for me, as the National President of the glorious and most respected apex professional organisation I have left an indelible mark over the affairs of the Federation. In a tenure of one year, your Federation has organised more than 6 tax conferences of National and International repute, convened 7 NEC meetings, one OGM at Mumbai to approve important amendments to the bye-laws and to give a legal quietus to the approved amendments to the bye-laws by way of ratification in the EOGM on 24-12-2016 at Hyderabad. Apart from all these in the entire nation and in all zones with the affectionate co-operation of all the office bearers, local bar associations and other friends having respected my word as many one day seminars as 27 have been organised, the last one is to be on 18th December, 2016 at Eluru, the hometown of my respected companion and bosom friend Shri Malladi Srinivasa Rao, Secretary General of the Federation for 2016 who has been kind enough to travel and journey with me throughout this year, of course only in the overall interest, growth and reputation of the Federation. As all of you know that this much of activity in a short period cannot be a single handed show but indisputably a combination of many hands with their dedication and unreserved co-operation. Every call by your National President for an activity of the Federation even in every nook and corner of the country has been unhesitatingly respected and honoured. I owe a deep debt of everlasting gratitude to all my colleague national office bearers, chairmen of zones and all the learned members of NEC, the highest policy making authority in the Federation, all the members of Managing Committees of the zones, zonal office bearers, all the learned office bearers of the partnering local bar associations in the country in all the conferences and seminars and finally to all my learned and affectionate brethren and sisters in the AIFTP. The addition of colourful feather in the cap of the Federation in our term is that our Life Member and one of NEC members from Chennai has been elevated as judge of the Madras High Court. Friends 2017, the new year starts with a most dynamic leader Smt. Premlata Bansal to lead the Federation as the first lady National President and we sincerely wish her a very meaningful and purposive term to her and her team of office bearers for a successful journey and we are sincerely hopeful that the Federation under her leadership would march forward in all respects.

Friends before we part from the office of the President and take leave from all of us, it is a matter of necessity for me to inform all my professional brethren that AIFTP has been on the forefront to take up all justiceable causes in the interest of its members and the current one is the issue of tax practitioners fraternity and to have the legacy continued even in the GST regime. AIFTP with the positive response from the Government is also able to reach halfway through by efforting to include the tax practitioners fraternity also as authorised representatives along with others. We hope that the balance of the work for inclusion of the tax practitioners for certification or verification or compliance part with the GST law through annual returns would definitely be pursued to a positive reflection by the incoming team. Nevertheless, it does not mean that my personal interference will cease with demital of the office by me. As stated in all the conferences, seminars and NEC meetings particularly as an addition to the efforts of the Federation, I would certainly continue to lend my hand unto the last we achieve the goal.

Finally, I am thankful once again to the national treasurer CA S. B. Kabra for setting a new trend by placing the financial state of affairs of the Federation every month and attending the office bearers meeting at head office. Though I need not say specifically still my beloved Secretary General has always been a hand in glove with me for efficacious discharge of duties and I am always thankful to him for his advises and guidance. We also thank sincerely to the staff office of the Federation Mr. Ravindra J. Patade, Mrs. Shweta R. Patade and Mr. Kalpesh Chavan for their continuous and dedicated co-operation and support and immediate response whenever required.

We are hopeful that the journal being the official mouthpiece of the Federation is always looked at by all the members of the Federation for updating their knowledge and quench the thirst of aptitude to learn. We are also hopeful that the federation by the end of 2018 during the presidentship of our learned brother Shri Ganesh Purohit would reach the magic figure of 10,000 membership.

Once again , we wish all of you Merry Christmas, Happy New Year and Happy Sankranti and with your good wishes, greetings and blessings, we take leave from all of you.

 

Dr. M. V. K. Moorthy
National President

Demonetisation

Demonetisation is showing itself to be good for the country, however tax professionals are of the considered opinion that the amendment introduced in “Taxation Laws (Second Amendment) Act, 2016” may lead to unintended litigation and honest taxpayers may suffer.

Addressing the “Economic Times Asian Business Leaders”, the Honourable Prime Minister Shri Narendra Modi has stated “India is currently witnessing an economic transformation. We are now moving towards a digital and cashless economy”. The Honourable Prime Minister has also stated that “presently, cleaning the system of black money and corruption is very high on agenda”.

We are of the opinion that tax professionals must come together and make suggestions objectively to the Honourable Prime Minister to achieve the agenda of cleaning up black money from the system.

One may recollect that the Federation in the year 2002, in the consultation paper on Direct Taxes presented to the Dr. V. L. Kelkar Committee had made a representation to the Government that all payments through card must be encouraged and that there has to be an incentive for making payment though cards. We are pleased to state that Government has started encouraging payment by cards as this will help the tax administration to bring more assessees under tax net. We are of the opinion that in the years to come, India will be moving towards a paperless economy which will definitely reduce the generation of black money.

The younger generation of this country are of the considered view that
86 per cent of the Indian citizens are happy with demonetisation. They feel that the bold step of the Honourable Prime Minster of India which he has taken in the interest of the nation to eradicate corruption from the country must be appreciated.

One may also recollect that the Federation had suggested in the Year 2010, the introduction of “India Development Tax Free Relief Bond, 2010” that was similar to the now existing “Pradhan Mantri Garib Kalyan Yojana, 2016”. The “India Development tax free relief Bond, 2010” which was drafted by Shri N. M. Ranka Sr. Advocate, Past President of the Federation which was forwarded to the Government through Shri Y. P. Trivedi Sr. Advocate and then Member of Parliament. However the Government had not acted upon it at that time. We highly appreciate that the present Government has accepted the suggestions and introduced a new scheme called “Pradhan Mantri Garib Kalyan Yojana”. We are of the opinion that present scheme of the Government is a good scheme and the tax professionals must explain the scheme to the citizens who can then take advantage of it. The citizen’s awareness programme on the subject of “Demonetisation – Tax & Legal Issues” organised by the Chamber of Tax Consultants of Mumbai on 7-12-2016 was very educative and for the benefit of the readers, the gist of the programme is published in this publication.

A view can be taken that taxing deemed income as per the provisions ofthe Second Amendment Act, 2016, under sections 68, 69, 69A, 69B, 69C, or 69D @ 60% (apart from surcharge, educational cess and penalty which, when added, make the effective tax rate to 83.25%) may lead to increased litigation.

We are of the opinion that tax professionals may have to play a role in ‘Risk Management’ in Taxation by advising the assessees to comply with the law and procedure so that they will not be liable to penalty, interest or prosecution.

One of the suggestions made the Government by the Federation and many professional organisations was to introduce the accountability provision in the tax administration as recommended by Dr. Raja J. Chelliah Committee. The ITAT Bar Association, Mumbai in their representation to Justice R. V. Easwar Committee, has once again, strongly recommended that accountability provision may be introduced in the Income-tax Act.

We hope the Government will introduce accountability provision in the proposed Finance Bill.

Tax professionals are known for innovative ideas and I am sure that professional organisations will join hands and prepare a white paper on the subject of reduction of black money and eradication of corruption from the system which has spread across the country as cancer.

Dr. K. Shivaram
Editor-in-Chief.