Early years

In the 1950s, one advantage of being a part time student in the Government Law College, Bombay was that it used to recruit a distinguished set of part-time teachers who would stray from their legal practice to give morning lectures. Undoubtedly, the most outstanding professor was young Nani Palkhivala. He happily did not restrict himself to the bare subject of the Evidence Act, 1872. He had become a part-time teacher in 1949 when he was 29 years old. He aroused the keen interest of the students even from neighbouring classes. The most fascinating part of his lecture was the way in which he could weave stories and contentions in law. You heard as much about Macaulay, the Draftsman as Macaulay, the Author. He had a way of narrating one story after another by holding the spell-bound attention of students. For instance, while speaking on language, Macaulay first was introduced as an author of Evidence Act, 1872 and the Indian Penal Code, 1860 but slowly moved to his mastery of language and literature.

Palkhivala was keen to teach not merely the text of the law but the principle behind it. One first observed how a persuasive and successful lawyer could cultivate legal logic in students, but it was the insight behind the thought that really ignited their curiosity. Palkhivala’s class attracted a large number of students who moved to his class.

Budget Speeches

In March 1958, the Forum of Free Enterprise arranged Palkhivala’s first talk on the Union Budget at the Green’s Hotel, where Taj Intercontinental is standing now. His talks on the budget were continued to be held at this venue till 1964 when it was found that the venue was inadequate to accommodate the increasing attendance, which had exceeded 1000. The meeting in 1965 was shifted to the more spacious Sir Cawasji Jehangir Hall, and when this venue was also found to be inadequate, the venue was shifted to the Cricket Club of India’s (CCI) East Lawns in 1966 where it continued till 1982. (In 1971 and 1980, since the Budgets were presented to the Parliament during the monsoon season, the meetings were held at the Shanmukhananda Hall. In 1978 and 1979, Palkhivala did not speak as he was in Washington DC as India’s Ambassador to the USA.)

The audience also grew from 3000 in 1966 to over 20,000 in 1982. At the 1982 meeting, Mr. Vijay Merchant, the then President of CCI, jocularly said that the meeting should be shifted to the Brabourne Stadium itself. The Forum promptly shifted the meeting to the Brabourne Stadium where Palkhivala spoke on the Union Budget from 1983 till his last talk on this subject in 1994. (In 1991 Mr. Palkhivala did not speak due to a major heart surgery). The attendance at this venue grew from about 35,000 in 1983 to over a staggering 100,000 in 1992, 1993 and 1994.

Every year Palkhivala would address two public meetings after the Budget was presented to the Parliament; one on the Budget on the Forum’s platform and the following day at the same venue on Finance Bill on the platform of the Institute of Chartered Accountants of India (WIRC). His talks on the Finance Bill were always technical as he analysed and discussed important provisions in detail. Even these talks also attracted attendance in excess of 25,000, mainly professional Chartered Accountants, and tax practitioners, as well as by students of Chartered Accountants’ course. It was a sight to see thousands of members in the audience taking copious notes of Mr. Palkhivala’s analysis of the Finance Bill. It was a classroom-like atmosphere.

After addressing the two meetings in Bombay, Mr. Palkhivala would proceed to a few other cities for talks on the Budget. The cities included New Delhi, Calcutta, Madras, Bangalore, Poona, Hyderabad and Ahmedabad. Needless to say, thousands attended these meetings in each place.

Contribution to tax law

The following cases stand out as benchmarks in the growth of tax law in our country and the principles laid down in those cases, thanks to his arguments, have stood the test of time. They are not in chronological order, but chosen at random.

Nalinikant Ambalal Mody¹ was a practising lawyer in the Bombay High Court. He was elevated to the bench. After his elevation to the High Court of Bombay, he received a substantial amount as arrears of fees for his professional services as a lawyer. He claimed that these were not taxable, since he had discontinued his profession, and while carrying on the profession, he was following the cash method of accounting. According to him, there was no provision in the income-tax law to bring to tax such receipts. The tax authorities took the view that the receipts may not be income from profession (since Mr. Mody had ceased to carry on the profession when he was in receipt of the arrears of fees), but assessed the amount under the head “income from other sources”, the residual head, relying on the principle embodied in the statute that income of any kind not chargeable to tax under other heads of income (including profession) can be charged to tax under the residual head. Palkhivala, who argued the case before the Supreme Court (the High Court having held against Mr. Mody), could successfully persuade the court to lay down the fundamental proposition that the heads of income did not overlap but were mutually exclusive, and if an item of income, which was properly chargeable under the head “profession” but could not be charged because of non-fulfillment of certain conditions, cannot be brought to tax under the residual head. For a long time, this judgment held the field not only with respect to professional income, but also formed the basis for exempting arrears of rent from property etc.

K. P. Varghese v. ITO², a case in which several leading tax lawyers appeared, including Palkhivala, is a decision rendered by a Division Bench of the Supreme Court; the judgment was written by Justice Bhagwati. Several important rules of interpretation applicable to income-tax law were laid down in the judgment, and every word in the judgment, in my humble opinion, is worth its weight in gold. The basic rule set out was that taxing any notional income (as opposed to real income) was opposed to and was violative of Entry 82 of the Union list, and a mere difference between the actual sale price of a property and its market value could not be brought to tax as it represented notional and not real income. The Entry, it was held, did not authorise such notional income to be brought to tax. Whenever the tribunals or the courts are faced with a knotty interpretational problem, this judgment often comes to their aid even today, as the principles laid down therein are enduring and govern the contours of the taxing provisions. This judgment is not any longer looked upon with the reverence it commands, and frequent violations thereof are evident in the Income tax Act, 1961; sections 50C and 56(2)(x) stark examples.

In Carborandum & Co v. CIT³, several questions relating to non-resident taxation arose. Questions also arose as to the jurisdiction of the High Court in a reference from the order of the Income Tax Appellate Tribunal. The entire issues, which were quite complex in nature, were simplified by Palkhivala in four propositions placed before the Supreme Court, all of which were accepted and the judgment of the Madras High Court was reversed. The limits of the advisory jurisdiction under section 256(1) of the Income-tax Act, 1961 were clearly spelt out in the judgment, including the proposition that in the guise of treating a specific question of law as being compendious and general in nature, the court cannot examine the correctness of findings of fact rendered on appreciation of evidence and seek to reverse them which would be in excess of its jurisdiction.

Gotan Lime Syndicate v. CIT⁴ is a case where Palkhivala took up the case of capital expenditure v. revenue expenditure, a vexed question in income-tax law those days. In a complicated set of facts, he was able to weave a simple solution by pointing out to the Supreme Court that ultimately what the assessee-company paid as royalty was for obtaining raw material, viz., limestone, and for the acquisition of an asset which contained deposits of limestone. The case may look simple and irrelevant in today’s focus of tax-law being at transfer-pricing issues with huge stakes, but with very little law involved and where minds are becoming stale and stagnant with mere application of formulae; but at a time when companies spent huge amounts as royalty payments, the tax effect was quite crucial for them, and it hurt them badly if the payments which were in reality revenue payments for obtaining the raw material were disallowed on a hyper-technical view of the matter and without having regard to the substance of the payments.

S. C. Parashar v. Vasantsen Dwarkadas⁵is a case in which Palkhivala appeared and argued when he was 46 years old, and if one reads the judgment one would be left in awe at the complex questions of law that were raised and decided in that case in relation to section 34 of the Indian Income Tax Act, 1922, and the various amendments it received.

In CWT v. Trustees of HEH Nizam’s Family⁶, a case in which Palkhivala appeared for the assessee, very interesting questions arose for consideration. One of them was whether the trustees could be charged to wealth tax under section 3 of the Wealth Tax Act, 1957, which did not, unlike the Income-tax Act, 1961, charge an association of persons with wealth-tax. Palkhivala did not press this question because in his view, which was accepted to be the correct view by the Supreme Court, they could be assessed to wealth-tax in the status of “individual”. Several important issues, basic and fundamental in nature, were decided in the case in the matter of assessment of trustees in accordance with section 21 of the Wealth Tax Act, 1957; uniformity in the treatment of the trustees for both income-tax and wealth-tax purposes was achieved through the judgment. It is a pleasure to read the judgment where ideas are very clearly expressed in the simplest of languages and style, and it is difficult to imagine all this would have happened without Palkhivala’s nuanced assistance.

One could go on citing cases in which Palkhivala had appeared and revel in his mastery of the facts and law; what I have attempted here is too miniscule a part of his monumental contribution to the development of the income-tax law.

Unfortunately, it would appear that neither the tribunals nor the courts have the time today to pay more attention to the development of this branch of the law. Tax litigation and the tax lawyer somehow do not seem to command the same respect from the courts as they used to, for unfathomable reasons. It can even be said that there is a tendency on the part of courts today to treat tax litigation as somewhat inferior to other branches of law. It is unfortunate that a general perception has gained currency that judges tend to avoid sitting in tax roster.

[Courtesy- Essays & Reminiscences: A Festschrift in honour of Nani A. Palkhivala, Edited by Arvind P. Datar, 2020, LexisNexis]

 

1 Nalnikant Ambalal Mody v. Commissioner of Income Tax, Bombay, (1966) 61 ITR 428.

2 K.P. Varghese v. ITO, (1981) 131 ITR 597.

3 Carborandum & Co v. CIT, (1977) 108 ITR 335.

4 Gotan Lime Syndicate v. CIT, AIR 1966 SC 1564.

5 S.C. Parashar v. Vasantsen Dwarkadas, AIR 1963 SC 1356.

6 CWT v. Trustees of HEH Nizam’s Family, AIR 1977 SC 2103.

It is my privilege to get this opportunity of putting together views and opinions, expressed by stalwarts of our field, about Dr. N. A. Palkhivala, an adorable person and in fact, is the presiding deity of the legal profession. In the initial days of my career, my senior, Dr. K. Shivaram Sr. Advocate, had given me the rare opportunity to interact with this towering personality of our times —–Padma Vibhushan Dr. N. A. Palkhivala; now again, I am blessed with this opportunity to work on this project.

While I felt elevated to walk a few steps with him, I can only imagine the advantage of those who had lived and worked with him. Even during that era of limited communications, the pre social media days, he became a house hold name for his independent views and for his high moral ground in public life. For professionals, in several walks of life, he was the role model providing inspiration and motivation. His public life with many facets and his professional versatility were an open book – any aspiring youngster can take a leaf out of it. His ‘perseverance’ as a professional had made him one of the greatest jurists of our times.

There is an air of optimism for the future generations due to the eco system created by such stalwarts. I am reminded of the lines written by Malcolm Gladwell in his book Outliers – The Story of success – “It make a difference where and when we grew up. The culture we belong to and the legacies passed down by our forebears shape the patterns of our achievement in ways we cannot begin to imagine. It’s not enough to ask what successful people are like, in other words. It is only by asking where they are from that we can unravel the logic behind who succeeds and who doesn’t” This is what is the gift of Padma Vibhushan Late Dr. N. A. Palkhivala to the future generations to excel in their chosen fields. The future generations are going to be indebted to him for creating the eco system where caliber and hard work are the passport for success. On behalf of the Journal Committee of the All India Federation of Tax Practitioners I thank all the contributors of this issue.

Mr. Mitesh Kotecha	Mr. K. Gopal
Chairman, Journal Committee	Editor, AIFTP Journal

I am very much delighted to be in the helm of affairs of the All India Federation of Tax Practitioners (AIFTP), when we all are celebrating the birth Centenary of Padmavibhushan Late Dr. N. A. Palkhivala, Senior Advocate, a True Legend, in whose presence AIFTP was formed on 11-11-1976. Dr. N A Palkhivala is a legend because, he used his talents to the fullest, and for all the right purposes. He did so by living for what he believed in, by working very hard, respecting the people he worked with and living his life with absolute grace and humility. I am equally delighted to be part of our Publication Team headed by Dr. K. Shivaram, Senior Advocate, who is publishing the Book Titled “A Legend” for AIFTP on this occasion, containing tributes paid to the Legend by the eminent personalities in our Country.

I remember a famous quotation of Dr. N. A. Palkhivala, who said, emphasizing the necessity of education “Education is at the heart of the matter. Literacy is not enough. It is good to have a population which is able to read; but infinitely better to have people able to distinguish what is worth reading.” He further said in his book “We, the Nation: The Lost Decades”, “A survey came to the conclusion that even among the educated classes 97 percent of the people could not think for themselves. They derived their opinions and beliefs from what they heard on the radio or television or read in the newspapers.” Who else can say this, so boldly, other than Dr. N. A. Palkhivala.

I wish, the readers of this book would be inspired from the expressions of the eminent personalities about this Legend.

Place : Eluru	M. Srinivasa Rao,
Dated : 02-01-2021	National President, AIFTP.

 

Message

It is my privilege to get this opportunity of putting together views and opinions, expressed by stalwarts of our field, about Dr. N. A. Palkhivala, an adorable person and in fact, is the presiding deity of the legal profession. In the initial days of my career, my senior, Dr. K. Shivaram Sr. Advocate, had given me the rare opportunity to interact with this towering personality of our times —–Padma Vibhushan Dr. N. A. Palkhivala; now again, I am blessed with this opportunity to work on this project.

While I felt elevated to walk a few steps with him, I can only imagine the advantage of those who had lived and worked with him. Even during that era of limited communications, the pre social media days, he became a house hold name for his independent views and for his high moral ground in public life. For professionals, in several walks of life, he was the role model providing inspiration and motivation. His public life with many facets and his professional versatility were an open book – any aspiring youngster can take a leaf out of it. His ‘perseverance’ as a professional had made him one of the greatest jurists of our times.

There is an air of optimism for the future generations due to the eco system created by such stalwarts. I am reminded of the lines written by Malcolm Gladwell in his book Outliers – The Story of success – “It make a difference where and when we grew up. The culture we belong to and the legacies passed down by our forebears shape the patterns of our achievement in ways we cannot begin to imagine. It’s not enough to ask what successful people are like, in other words. It is only by asking where they are from that we can unravel the logic behind who succeeds and who doesn’t” This is what is the gift of Padma Vibhushan Late Dr. N. A. Palkhivala to the future generations to excel in their chosen fields. The future generations are going to be indebted to him for creating the eco system where caliber and hard work are the passport for success. On behalf of the Journal Committee of the All India Federation of Tax Practitioners I thank all the contributors of this issue.

Mr. Mitesh Kotecha	Mr. K. Gopal
Chairman, Journal Committee	Editor, AIFTP Journal

Preface
From the Desk of the Editorial Board
Dr. K. Shivaram, Senior Advocate

Nani A. Palkhivala: God’s Gift to India – Savior of The Constitution of India – A Legend & A Role Model To The Tax Professionals

January 16, 2021 marks a memorable day in Indian history, wherein we will be celebrating centenary of Padma Vibhushan Late Dr. N. A. Palkhivala who is widely acknowledged as ‘God’s Gift to India’. Many of us at the ITAT Bar Association (Mumbai), and the All India Federation of Tax Practitioners (AIFTP) were fortunate enough to have an opportunity to interact with Shri N. A. Palkhivala frequently and at close quarters. I had the immense privilege of being the Honorary Secretary of the ITAT Bar Association during the period that he was the President of the Association. As kindred as every personal interaction with him was, I had the occupational advantage of listening to his arguments before the High Court at Bombay, the ITAT and his speeches at various Tax Conferences. His Budget speeches were a whole different delight, enthralling an entire stadium of people with the same rapt attention that a match on the same ground would struggle to replicate till perhaps it was classified as a nail biter that went up to the last ball!

Shri N. A. Palkhivala was instrumental in the formation of the ITAT Bar Association Mumbai, which was established on 18th November 1965. Shri N. A. Palkhivala Shri N. A. Palkhivala was the longest serving President of the ITAT Bar Association, a duration spanning from 1968 to 2002. Shri N. A. Palkhivala was also instrumental in the formation of AIFTP on the occasion of All India Shri N. A. Palkhivala was instrumental in the formation of the ITAT Bar Association Mumbai. He was the longest serving President of the ITAT Bar Association, a duration spanning from 1968 to 2002. Shri N. A. Palkhivala was also instrumental in the formation of AIFTP in the year 1976.

National Conference, which was organised by the Chamber of Income Tax Consultants on 11-11-1976.

Shri Nani Palkhivala delivering Keynote address at 1st All India
Conference on Taxation on 11th November 1976

In 1996, the ITAT Bar Association Mumbai challenged the order of the Government which had the effect of interfering with the Judicial functioning of the ITAT (ITAT Bar Association v. UOI WP. No. 2350 of 1996). I, along with Mr. N. R. Jagtap and Mr. K. Gopal, Advocates had an opportunity to appear before the Bombay High Court, lead by Shri N. A. Palkhivala before the then Chief Justice of the Bombay High Court, Hon’ble Justice Mr. M. B. Shah. It is said that it was his last appearance before the Court. His health did not permit him to appear thereafter in the matter, and on his request, Shri Iqbal M. Chagla, Senior Advocate, ably Assisted by Mr. Darius J. Khamabatta, Senior Advocate, argued the matter on behalf on the ITAT Bar Association Mumbai. The Independence of the Appellate Tribunal was up held, and guidelines for transfer of Hon’ble Members of the Appellate Tribunal were framed (Ajay Gandhi & Anr. v. B. Singh & Ors (2004) 265 ITR 451 (SC). In a land mark Judgement, ITAT through President v. V. K. Agarwal (1999) 235 ITR 175 (SC) the Hon’ble Court held that, the Law Secretary has no jurisdiction to interfere with the judicial functioning of the Appellate Tribunal. The conduct of the then law Secretary, of unduly interfering with the judicial function of the Appellate Tribunal was held to amount to a gross contempt of Court and a fine of ₹ 2,000 was imposed for the contempt.

On his demise, the AIFTP made an appeal to the Government of India to release a commemorative postage stamp in his memory. It was heartening to note that, the same was accepted and the then Hon’ble Prime Minister of India Late Shri Atal Behari Vajpayee himself, came to Mumbai to release the commemorative stamp on January 16, 2004. The entire release function was organised with the support of Shri Ratan Tata and Shri A. D. Shroff, President Forum of Free Enterprises.

Release of Commemorative Postage Stamp on
Shri Nani A. Palkhivala on 16th January, 2004

1st Row from Left to Right: S/Shri Ratan Tata, Soli Sorabjee, Attorney General for India, His Excellency Mohd. Fazal, Governor of Maharashtra, A. B. Vajpayee, Hon’ble Prime Minister of India, Sushil Kumar Shinde, Hon’ble Chief Minister of Maharashtra, Shri Arun Shourie, Hon’ble Minister of Communication, IT & Disinvestment.

2nd Row from Left to Right: S/Shri A. D. Shroff, President, Forum of Free Enterprises, Shri K. Shivaram, National President, All India Federation of Tax Practitioners, Smt. Jayanti Mehta, Hon’ble Minister of State (Power).

Picture of the Postal Stamp released in the honour of late Shri Nani A. Palkhivala, commemorating him in a befitting manner, on his 84th birth anniversary (16-1-2004)

It is also a matter of great coincidence that on the same day, on the request made by the ITAT Bar Association Mumbai, the then Hon’ble Justice Mr. V. N. Khare, Chief Justice of India visited the premises of the ITAT for unveiling the portrait of Shri N. A. Palkhivala. It was a memorable day in the history of the ITAT that the Chief Justice of India visited the premises of the ITAT Mumbai along with three Judges of the Supreme Court, Chief Justice of Bombay High Court and many Judges of the Hon’ble Bombay High Court. It is said that an artist is appreciated only after his death. It was perhaps fitting then, that death did not diminish the legacy of a lawyer that was considered a legend even during his lifetime.

Honourable Justice, Mr. V. N. Khare, Chief Justice of India, Honourable Justice
Mr. C. K. Thakker, Chief Justice Bombay High Court Unveiling the
Portrait of Nani Palkhivala on 16-1-2004

In the year 2003, the AIFTP had published a special Issue titled “A Tribute to the Stalwarts of the Tax Bar” (Shri R. J. Kolah, Shri N. A. Palkhivala and Shri S. P. Mehta) which contains Tributes by the Judges and Professionals. Whenever a junior joins our chamber or any student takes up internship, we make it a point to request them to read the Special issue of the AIFTP “A Tribute to the Stalwarts of the Tax Bar” (2013) AIFTPJ- August –Vol 5. and also “Nani Palkhivala – the Court room Genius” by Soli J Sorabjee, Former Attorney-General of India, Senior Advocate and Arvind P. Datar, Senior Advocate.

In the year 2004, with a view to developing a new generation of professionals to take up the cause of tax jurisprudence and to develop interest in taxation, the AIFTP in association with the ITAT Bar Association Mumbai and Government Law College Mumbai started Nani Palkhivala Memorial National Tax Moot court competition with active support of Shri B.A. Palkhivala Tax Professionals, Prof. P. R. Rao Principal, Govt law College, Prof. Sanjay Kadam, Chairman, Moot Court Association Govt. Law College and Student Members of Government law College Moot Court Association. This was the first National Moot court Competition on the subject of Taxation. The Moot Court Competition was held at the actual court rooms of the ITAT premises and was judged by the professionals who regularly appear before the ITAT and the High Court. The semifinal was judged by the Hon’ble Members of the ITAT and final was by the sitting Judges of the Bombay High Court. More than 26 leading law colleges from across the country used to participate in the competition every year. The wining team and runner-up team was awarded cash prices and also internship with leading law firms. The best speaker was given an opportunity of internship with leading Tax Senior counsel of India, Shri S. E. Dastur Senior Advocate, Shri V. Ramachandran, Senior Advocate and Shri. N. M. Ranka, Senior Advocate and Shri Bharat Ji Agarwal Senior Advocate. The best team and the best speaker were given the membership of AIFTP along with its publications. The Palkhivala Memorial National Tax moot court competition was held for a decade from 2004 to 2013. Every year a souvenir was published which contained the messages, articles etc.

A Nani Palkhivala Memorial research paper on Direct taxes was also set up for students from more than 200 law colleges to contribute to. The best three Research papers were published in the Journal of AIFTP and also on www.itatonline.org. It is also to be appreciated that in the year 2009, one of the research papers had the distinction of being published in the International Bureau of Fiscal Documentation (IBFD) journal (Amsterdam, Netherlands). The legacy of the man continued to support the development of tax as a profession long after he left the tax bar.

In the year 2004, the AIFTP has published a publication titled “A Fine Balance: law and Procedure Before Income-tax Appellate Tribunal”, which was dedicated to Padma Vibhushan Late Dr. N. A. Palkhivala. Similarly, in 2017, the AIFTP in association with ITAT Bar Association Mumbai has published a publication titled “Income Tax Appellate Tribunal – A Fine Balance, law practice, procedure and conventions”, also dedicated to his memory.

2021 being the centenary year of the Padma Vibhushan Late Dr. N. A. Palkhivala, the Journal committee of AIFTP is publishing a Special issue as a Tribute to Padma Vibhushan late Dr. N. A. Palkhivala. The Title of the special issue is “Centenary Celebration of Padma Vibhushan Late Dr. N. A. Palkhivala Senior Advocate – Remembering the Legend – A Tribute” In this publication we have made an attempt to publish the quotes from the Judges, Senior Advocates, Advocates and Chartered Accountants, which were published in the journal/ souvenirs of the AIFTP. Each quote will be an inspiration to young professionals to know and understand the life history of a legend who arguably is one of the greatest lawyers to this country and a savior of the fundamental rights enshrined in the Constitution of India.

The life history of Padma Vibhushan Late Dr. N. A. Palkhivala was marked with multiple challenges that were overcome more by his sheer perseverance and hard work more than any gift that lady luck may have bestowed upon him. Any first-generation lawyer, can even today empathise closely with the challenges that the young ‘Nani’ as he was fondly called might have faced in his early days:

— An initial handicap of stammering which he overcome by sheer willpower.

— The not having of any Godfather in the profession which today is considered to be ‘sin qua non’ for being successful at the bar.

— Not being born into a privileged family where all the luxuries of life were available to him.

But then, every problem must have a solution, and these he did find!

— As a junior, when he was not involved with any work he spent hours in the Judges’ library.

— He ardently believed that work is worship. He used to repeat the lines of a poem “blessed is he who has found his work; let him ask no other blessedness.”

— He was very particular about the English language, both spoken and written.

— Punctuality despite of a very busy schedule was made a habit rather than an exception. He always tried to come to the court at least 5 minutes before his case was expected to be called up or taken up

— He was considered a voracious reader and had a rare mastery over the English Literature. ‘Work hard’ was his motto. Those who were close to him attest to the fact that books were his constant companions. Even while travelling!

— He cultivated his memory very assiduously, and had managed to acquire the power of recall, developed the intellect of the highest calibre and photographic memory

— He had a genuine sense of affection and was overwhelmingly kind to people around him.

— Soft spoken, very courteous and humble and always readiness to help the profession or his fellow professionals. He was never rude to any judge nor to any member of the Bar. The questions put to him by the Judges, no matter how junior were answered with respect and humility.

— Most polite, co-operative and displayed a deep sense of understanding the views of his legal opponents.

— He emphasised human character, basic values, financial integrity, intellectual honesty, courage, integrity and humility.

— An incredibly analytical mind, a prodigious memory and a lucidity that made the most complex argument simple to a person of the meanest intelligence

— As a defender of Constitutional liberties and a champion of human rights, he had courageous advanced his conviction that ‘expediency in the name of progress, at the cost of freedom, is no progress at all, but retrogression’. He has been a lawyer, teacher, author, and economic developer,

— While arguing matter before Supreme Court in the case of Kesavanada Baharti v. State of Kerala, AIR 1973 SC 1461, on most of the days worked 18 hours a day including time spent in the court.

— He cherished freedom and fought for it against great odds. He saved our Constitution, as well as our fundamental rights when they needed saving from a brute parliamentary majority.

— He supported independence of our country’s institutions with special soft corner for the ITAT.

— He had great insight in financial and economic matters which he used to a great effect.

— He is not know to have spoken ill to any one and if someone did say something nasty about him, he would not take it badly, he never indulged in gossip.

— He is well known to have done many matters ‘ Pro bono’ when he came to know that the client was not in a position to pay and offered to pay the Court fee also when some injustice was done if required.

— He entertained junior lawyers in his chamber for discussing their personal difficulties or guidance.

— Humble enough to see every client to the door at the end of each meeting.

— Deprecated the tendency to accumulate wealth. He believed in the principle of Trusteeship and felt that all wealth, like knowledge, has to be shared.

— He believed in the need for continuous self- improvement.

— He was a great orator, an outstanding scholar and a humanist par excellence, a rare combination of humility, sensitivity, genius and integrity – all rolled up in one person. He is one of those rare people who became a legend during their life time.

At AIFTP, there are two wishes that are yet to be realized – The formation of Palkhivala Memorial Research Center on Direct Taxes and Indirect Taxes in association with Government of India and the conferment of the Barat Ratna on the Late Shri Palkhivala for his contribution to save the Democracy of the Country as desired by Shri M. L. Bhakta Advocate & Solicitor Mumbai.

We are sure that as long as the democracy in India survives, the contribution of late Shri N. A Palkhivala in fight to save the Constitution of India both in its letter and spirit shall be remembered. It is desired that his life story may be known to the citizens and future generation. We hope the future leaders of the AIFTP shall carry forward his legacy.

We desire that AIFTP in Association with ITAT Bar Association Mumbai and the Government Law College, Mumbai, may consider holding a Virtual version of the Nani Palkhivala Memorial National Moot Court Competition on Direct and Indirect taxes and also continue the Nani Palkhivala Memorial Research paper on direct and Indirect taxes for the benefit of young professionals who desire to develop a tax litigation practice. We also desire that Senior Tax Practitioners may be requested to address law colleges which are situated in remote places of our country on the subject of development of direct and Indirect tax practice and also value , ethics and conventions practiced by Padmavibhushan Late Dr. N.A. Palkhivala and stalwarts of the Tax Bar.

We are hopeful that by studying the life history of Late Shri Palkhivala, we may be able to get many more brilliant lawyers. We also believe that legacy of Shri N. A. Palkhivala would be best preserved by practicing unstintingly the values he preached and practiced during his lifetime. After all, the legacy of the past is nought bust rubble, if not preserved, cherished and propagated!

Mr. M. Srinivasa Rao National President, AIFTP, Mr. Mitesh Kotecha Chairman of Journal Committee, AIFTP, Mr. Janak Vaghani Vice President (AIFTP) West Zone, Mr. K. Gopal Editor of AIFTP Journal and the Committee Members of the Journal Committee deserves a special appreciation for devoting their valuable time and support for this prestigious publication.

This publication is hosted on the website of the AIFTP i.e., www.aiftponline.org and made available to all the members of the AIFTP and others.

For Editorial Board

Dr. K. Shivaram
Senior Advocate

Padma Vibhushan Late Dr. N. A. Palkhivala
Senior Advocate

(16-1-1920 – 11-12-2002)

Shri N. A. Palkhivala was born on January 16, 1920 in Bombay. He took his M. A. degree with Honours in English from the Bombay University in 1942. He stood First Class First in the 1^st LLB (1943), as well as in the 2^nd LLB (1944) examinations and again First in the Advocate (Original Side) Examination of the Bombay High Court in 1948.

He was a Professor of Law at the Government Law College Bombay, for many years, and was appointed as the Tagore Professor of Law at the Calcutta University.

He was a Member of the First Law Commission of India (1955) and also of the Second Law Commission (1958).

In 1975 he was elected an Honorary Member of The Academy of Political Science, New York, in recognition of his “outstanding public service and distinguished contributions to the advancement of political science”.

In September 1977, Mr. Palkhivala was appointed Ambassador of India to the United States of America.

In June 1978 the Princeton University, New Jersey (USA), conferred on Mr. Palkhivala, the Honorary Degree of Doctor of Laws, describing him as “defender of constitutional liberties, champion of human rights, teacher, author and economic developer.”

In April 1978 the Lawrence University, Wisconsin (USA), conferred on Mr. Palkhivala, the Honorary Degree of Law with the following citation :–

“…. As India’s leading author, scholar, teacher and practitioner of constitutional law you have defended the individual, be he prince or pauper, against the state; you have championed free speech and an unfettered press; you have protected the autonomy of the religious and educational institutions of the minorities; you have fought for the preservation of independent social organisations and multiple centres of civic power …. Never more did you live your principles than during the recent 18 month ordeal which India went through in what was called “The Emergency,”…
Under the shadow of near tyranny, at great risk and some cost, you raised the torch of freedom…”

Mr. Palkhivala was the author of The Law and Practice of Income-tax, which is the standard reference book on the subject. He is co-author of Taxation in India, published by the Harvard University in the World Tax Series. He has written a book on India’s tax structure — The Highest Taxed Nation; on the Constitution of India — Our Constitution Defaced and Defiled in which he has discussed the basic features of the Constitution and the amendments made to it; and on the cultural heritage of India — India’s Priceless Heritage. In 1984, We, the People, and we the nation was published which contains extracts from his speeches and writings of over three decades. This volume also includes extracts from his speeches on the Union Budget, and an incisive analysis of the public policies of India.

He has argued number of landmark cases in the Courts of India and abroad.

Mr. Palkhivala successfully argued before the Supreme Court the cases which affirmed the Fundamental Rights of minorities to establish and administer educational and religious institutions of their choice, and to choose the language in which education should be imparted.

Barring some exceptions, the above cases were all fought by him on honorary basis and as a matter of service to the nation.

Mr. Palkhivala was the Chairman of The Associated Cement Companies Ltd., Tata Exports Ltd., Tata Consultancy Services, and of several overseas companies. He was the Vice-Chairman of Tata Engineering and Locomotive Company Ltd. and Associated Bearing Company Ltd., and a Director of Tata Sons Ltd., The Tata Iron and Steel Company Ltd., Tata Energy Research Institute, National Organic Chemical Industries Ltd., and of several overseas companies.

Mr. Palkhivala had many activities outside the immediate sphere of his work. He was the President of the Forum of Free Enterprise, Chairman of The Leslie Sawhny Programme of Training for Democracy, The A. D. Shroff Memorial Trust, The Lotus Trust, and the Income Tax Appellate Tribunal Bar Association, Bombay, and a Trustee of other charitable trusts.

Felicitated with the Life time achievement award by Maharashtra Governor, Hon’ble Shri P. C. Alexander at a function organised by the All India Association of Industries (AIAI) on 15^th April, 1999.

Government of India awarded Padmavibhushan on 26th January, 1998.

Passed away on 11-12-2002.