MCCI for inclusion of judicial member in tribunal benches
Friday, 16 November 2007
FE Report
The Metropolitan Chamber of Commerce & Industry (MCCI) has reiterated its call to the National Board of Revenue (NBR) for reconstituting the Tribunal benches by inclusion of a judicial member in each bench in order to help make qualitative improvement in the decision-making process of such benches.
Judicial members, the MCCI recalled in an editorial comment in the latest issue of its Tax News, were excluded from the Tribunal benches under amendments made to the Income Tax Act in 2002. "Previously, Tribunal benches comprised of both judicial members and accountant members, and as was the practice, the judicial member used to head the Tribunal as its President. Judicial members mostly were found to be well-conversant with legal interpretation of various laws and rules. This position is now non-existent due to the amended legal provision. A non-judicial member and at times a retired member of NBR now heads the Tribunal as its President. The non-judicial members are drawn mostly from retired members of the NBR and incumbent Commissioners of Taxes", it noted
According to the chamber, such retired members and Commissioners of Taxes who served the NBR under Internal Resources Division (IRD) are widely termed as subservient to IRD. "They are reported to be more inclined to protection of revenue rather than dispense justice to an aggrieved appellant assessee. In disposing of appeal cases, most of such members of the tribunal remain alert so that their decisions do not act to displease the IRD. Similarly, the incumbent Commissioners of Taxes appointed as members of the Tribunal can not afford to antagonise IRD in the discharge of their duties", it said.
It pointed out that legal matters were often associated with complexities, ambiguities and multi-connotations. "No single law, say income tax is confined to fiscal limitations alone. It is now concomitant with various other laws like Muslim laws, laws of inheritance and jurisprudence of all kinds. These require thorough study by a legal expert. An income tax functionary often lacks the requisite back-ground. A judicial member having long experience in judicial matters is capable of passing appropriate rulings on important legal matters thereby improving the quality of judgment. So not to speak of transparency and non-partisan aspect of tribunal judgment, the quality of the decisions made at the tribunal is important thing which needs to be reckoned within the set-up of Tribunal benches without judicial member."
"Besides, aggrieved appellants look upon the Tribunal as the last resort of justice to get their grievances redressed equitably and in just manner in respect of fact finding in the highest order. For this, it is necessary that the Tribunal as a judicial body should be free from the executive influence of the Government. This will also be in conformity with the present trend in the country for judicial autonomy", it observed.
"In this context, the MCCI welcomed the recent amendment of the Income Tax Act under which the appellate power, i.e., the revisional power of the Executive Commissioner of Taxes "has been withdrawn".
To neutralise the executive influence in the Tribunal benches, inclusion of a judicial member, the chamber felt, is of paramount importance. "It will provide the Tribunal benches a system of bult-in-stabilizer to maintain a check and balance in the delivery of judgment and thereby contribute to the improvement of quality judgment", it said.
The Metropolitan Chamber of Commerce & Industry (MCCI) has reiterated its call to the National Board of Revenue (NBR) for reconstituting the Tribunal benches by inclusion of a judicial member in each bench in order to help make qualitative improvement in the decision-making process of such benches.
Judicial members, the MCCI recalled in an editorial comment in the latest issue of its Tax News, were excluded from the Tribunal benches under amendments made to the Income Tax Act in 2002. "Previously, Tribunal benches comprised of both judicial members and accountant members, and as was the practice, the judicial member used to head the Tribunal as its President. Judicial members mostly were found to be well-conversant with legal interpretation of various laws and rules. This position is now non-existent due to the amended legal provision. A non-judicial member and at times a retired member of NBR now heads the Tribunal as its President. The non-judicial members are drawn mostly from retired members of the NBR and incumbent Commissioners of Taxes", it noted
According to the chamber, such retired members and Commissioners of Taxes who served the NBR under Internal Resources Division (IRD) are widely termed as subservient to IRD. "They are reported to be more inclined to protection of revenue rather than dispense justice to an aggrieved appellant assessee. In disposing of appeal cases, most of such members of the tribunal remain alert so that their decisions do not act to displease the IRD. Similarly, the incumbent Commissioners of Taxes appointed as members of the Tribunal can not afford to antagonise IRD in the discharge of their duties", it said.
It pointed out that legal matters were often associated with complexities, ambiguities and multi-connotations. "No single law, say income tax is confined to fiscal limitations alone. It is now concomitant with various other laws like Muslim laws, laws of inheritance and jurisprudence of all kinds. These require thorough study by a legal expert. An income tax functionary often lacks the requisite back-ground. A judicial member having long experience in judicial matters is capable of passing appropriate rulings on important legal matters thereby improving the quality of judgment. So not to speak of transparency and non-partisan aspect of tribunal judgment, the quality of the decisions made at the tribunal is important thing which needs to be reckoned within the set-up of Tribunal benches without judicial member."
"Besides, aggrieved appellants look upon the Tribunal as the last resort of justice to get their grievances redressed equitably and in just manner in respect of fact finding in the highest order. For this, it is necessary that the Tribunal as a judicial body should be free from the executive influence of the Government. This will also be in conformity with the present trend in the country for judicial autonomy", it observed.
"In this context, the MCCI welcomed the recent amendment of the Income Tax Act under which the appellate power, i.e., the revisional power of the Executive Commissioner of Taxes "has been withdrawn".
To neutralise the executive influence in the Tribunal benches, inclusion of a judicial member, the chamber felt, is of paramount importance. "It will provide the Tribunal benches a system of bult-in-stabilizer to maintain a check and balance in the delivery of judgment and thereby contribute to the improvement of quality judgment", it said.