India Inc cries foul over new IT order

January 25th, 2012 - 9:16 pm ICT by IANS  

Mumbai, Jan 25 (IANS) The corporate world Wednesday expressed “serious concerns” over the directive of the Central Board of Direct Taxes to the Income Tax Department to visit the premises of taxpayers who have not been assessed or who have not furnished PAN numbers while entering into high-value transactions.

In a letter to CBDT Chairman M.C. Joshi and Mumbai’s Chief Commissioner-ITD N.P. Singh, the Indian Merchants Chamber objected to the proposal, contending that it was ‘unwarranted’ since it bypassed existing processes and procedures.

“Such visits by tax officials to premises without checks and balances and without authority of law are bound to lead to harassment and possible source of corruption,” IMC President Bhavna Doshi said in her letter.

She pointed out that “the law has built-in safeguards to ensure that there is no undue harassment of taxpayers without adequate reason, and without following proper processes. To bypass such existing processes and procedures is unwarranted.”

Doshi urged Joshi to instruct the tax officers to first call for information on the sources of income and evidences thereof by giving reasonable time, and in case of no cooperation by the taxpayer, to follow the due processes of law.

“IMC will be happy to extend any assistance to the Government and tax authorities in their efforts to unearth the black money and delighted to discuss the issue to make the existing processes and procedures more effective without undue harassment of citizens,” Doshi assured.

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