My beloved Members,


We have borrowed the above title of a illuminating column dated 19-8-2015 written by Mr. Jug Suraiya, the distinguished writer, who writes on the edit page of TOI.

The above is in the context of a news item, based on a CAG report, published in TOI dated 27-7-2015 under the heading – ‘No proof of Govt. spending of Rs. 44,000 Cr.’ The CAG, among others reported top defaulters who did not submit Utilisation Certificates pending at the end of March 2014. Here below is the tally of top defaulters:

Top Defaulters

Sl. No. Ministry * Pending UCs Amount in crore Rs.
1 Health 6,724 16,192
2 Agriculture 3,089 12,380
3 HRD 3,889 9,954
4 Youth Affairs & Sports 7,100 1,439
5 Social Justice and Empowerment 10,046 653

*Utilisation certificates pending at the end of March 2014.

As per Comptroller and Auditor General (CAG) in a new report which pointed to close Rs. 44,000 crore released over the past few years without getting utilisation certificates or accounts of grants given to statutory bodies and organisations, resulting in spending without any evidence of gains flowing to the beneficiaries. The numbers would be much higher as at least 13 Ministries including power, panchayati raj, rural development, petroleum, public enterprises and commerce and industry did not share information with the CAG. The CAG findings, however, point to a completely careless approach where funds were repeatedly released without any evidence of spending having taken place.

We tax practitioners always take pride in saying that we act as a bridge between the taxpayer and the tax gatherer, and, thus, are a part and parcel to earn revenue for the Government which spent the same for the overall growth of the civilised society. But we miserably failed to see whether such revenue is really spent for the aforesaid cause? However, Mr. Jug Suraiya loudly and boldly opine that public money comes from the hard-earned private money out of which taxpayers pay their taxes. But once this private money goes into government coffers it becomes public money for which no hisaab (i.e. no account) is required. We keep asking for an accountable government. Let alone accountability, our Sarkar seems often in capable of basic accountancy. Literally and figuratively, a Sarkar of no account. Who is going to find out a solution for this malady for Mr. Jug Suraiya and for ourselves? Your feedback on this issue will be highly appreciated.


As per PTI report dt. 15-9-2015, the Income Tax Dept. has updated its CPC working and from the current year i.e. A.Y. 2015-16, assessees’ who filed their returns on or before 7-9-2015 on the e-filing portals will certainly be given their refunds within 10 days time. If so happens, we will heartily congratulate IT Dept. and CBDT. Simultaneously, the new Revenue Secretary Mr. Hasmukh Adhia, who took charge of the Revenue Dept. recently, commented – “Government to act against bad elements in Tax Dept.” He further said, “There is no tax terror in the Dept.” As far as the back-log mess created by the CPC in non-granting refunds due to mismatch data uploaded by the ward offices across the country, yet no solution is found and the solution given to such problems by the Delhi High Court in a landmark judgment dated March 14, 2013 given in the case of Court on its own motion v. CIT And AIFTP v. UOI And Ors., reported in (2013) 352 ITR 273 (Delhi), is not even known to the ITOs and even in many cases to the CIT’s also. As a result, large number of assessees running into thousands across the country, are yet to receive their refunds and still the Dept. is silent on their rectification applications. So, who says that the IT Dept. due to technology advancement has found a solution to serve its taxpayers ?

Notwithstanding the above observation, for A.Y. 2015-16, the honest taxpayers numbering 2.06 crore have had e-filed their returns on the e-filing portal on or before 7-9-2015, which are more than 26.12% as compared to the previous assessment year. So let us see whether the IT Dept. and CBDT keep their assurance of refunds within 10 days time ! With best wishes and regards,

J.D. Nankani
National President

Comments are closed.