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1961 MR. JUSTICE V. SETURAMAN, FORMER JUDGE, MADRAS HIGH COURT
..It is indeed creditable that the Tribunal has built up over the years a reputation as a model institution. I look back with a sense of satisfaction and happiness on the 14 years I spent in it. Some of the brightest ornaments of the legal profession have appeared before 1. Mr. C.K.Daphtary, a former Attorney-General, once told me in his characteristic way, that he gave the first start to the Tribunal as his was the very first case to be heard by it. Let us hope that the reputation so assiduously built by the Members past and present would be bettered still in the future, so that its flag flies always aloft as an institution which acts as a satisfactory buffer between the tax-gatherer and the tax-payers."
MR. JUSTICE D.R.KHANNA, FORMER JUDGE. DELHI HIGH COURT SHRI JAGDISH CHAND, FORMER CHAIRMAN, CENTRAL BOARD OF DIRECT TAXES.
SHRI N.A.PAL.KHIVALA, SENIOR ADVOCATE, BOMBAY
SHRI Y.V.ANJANEVLJLU, SENIOR ADVOCATE, HYDERABAD ( LATER BECAME JUDGE OF ANDHRA PRADESH HIGH COURT AND ALSO MEMBER OF LAW COMMISSION OF INDIA)
SHRI N.K.P. SALVE, M.P. AND CHARTERED ACCOUNTANt NEW DELHI.
(FORMER CABINET MINISTER IN UNION OF INDIA)
SHRI B.L.PAL, SENIOR ADVOCATE, CALCCUTA
"Born as the Tribunal was, out of the strong and natural desire of the people to be able to appeal to an independent body on important questions of fact, it provides a popular and informal forum for giving substantial justice, not bound by the ru/es of evidence, to persons aggrieved by decisions of the Appellate Assistant Commissioners. The Tribunal, in the 25 years of its existence has earned unstinted praise for the independence of its decisions; and in its fervent desire to do justice it has won the we/I merited confidence of the public.
SHRI AMAL KUMAR SARKAR, FORMER CHIEF JUSTICE OF INDIA "1 had recently been going through some of the papers that came to my hand, I found in a speech delivered by Mr. Sampat lyengar, another isv/I known person in the field of tax laws, that in the year 1963-64 the Income-tax Department lost 88% of the appeals that it preferred to the Tribunal. In other words, 88% of the Department's appeals to the Tribunal were decided in favour of the assessee. That should set at rest all questions about the Tribunal's independence and impartiality; it should silence all who think that the Tribunal is not a judicial body in the full sense of the word, It would prove that though a large percentage of the members of the Tribunal were earlier officers in Income-tax Department, yet that has not affected the impartiality of its decision. Experience shows that for the beneficent working of the Tribunal and speedy and satisfactory disposal of cases before it, it is necessary that men familiar with the inner warning of assessment should sit on it Assessment of income-tax is a highly specialised job. It is necessary that the Judges dealing with cases of assessment should be thoroughly familiar and completely at home in matters pertaining to them. Assessment often involves going into intricate accounting. It is necessary that the members of the Tribunal should have great proficiency in accounts, It is therefore very desirable that the Tribunal should consist of practicing accountants as also departmental officers familiar with the accounts. They can always put their fingers on the right spot resulting in a quick and satisfactory decision." 'There may be people who feel that the Tribunal is not in the full sense a judicial body. I venture to think that none Of them is an assessee. I also venture to think that such a notion is superficial and stems from the want of knowledge of the actual working of the Tribunal. The judges who preside over the Tribunal are capable men, men of character and integrity. Anything that is unjudicial is quite foreign to them. The presiding Officers of the Tribunal are selected by a body of experienced men presided over for some years now by a Judge of the Supreme Court. This should be a guarantee that the right type of men are selected. The Ministry of Finance which is in charge of the collection of taxes has no control over that body or the Tribunal. The Tribunal is under the Ministry of Law for the purposes of administrative control only- That Ministry is not interested in the collection of taxes and does not exercise any control over the judicial work of the Tribunal The members of the Tribunal are divided into two classes, called Judicial and Accountant. The Judicial members are selected from members of the legal profession who have specialized in tax matters, and also from the State Civil Judiciary. The present President of the Tribunal, Mr. T. P., Mukerjee, before he joined the Tribunal, was an illustrious member of the State Judiciary of Bihar, having last held the office of a District and Sessions Judge in that State. I suppose people so selected can be expected to be as independent as anybody else. The Accountant members of the Tribunal are selected from among the higher officers of the Income Tax Department, usually Commissioner and senior Appellate Assistant Commissioners and from the practising chartered accountants. So far as the later are concerned, there can be no reason to think that they cannot be independent. The independence of the members recruited to the Tribunal from the officers of the Income Tax Department is secured by so arranging things that they cannot look forward to anything from the Income Tax Department or the Ministry of Finance they cannot go back to higher posts in that Department. Their promotion and tenure of office are not controlled by the Ministry of Finance. These are in the hands of the Ministry of Law. If we look into the actual facts' and figures, we will find that as a general rule, the members recruited from the Department ended their working life with the end of their tenure on the Tribunal. I believe I would not be wrong in saying that there is practically no instance of a member of the Tribunal taking up a new office under the Government. A very few of them have been appointed Judges of High Courts. As we are all aware, such appointments are not in the gift of the Government. They are made on the recommendations of the Chief Justice of a High Court in consultation with the Chief Justice of India. I am sure, no one will say that such appointments have gone to men who have thoroughly proved their independence. I also hope that appointments 10 the High Courts from the members of the Tribunal have proved a success. I suppose, by whatever name a Tribunal is described, its primary function is to dispense justice see that the law is applied impartially and correctly irrespective of what its effect may be on a particular party to the case. I concede that an administrative tribunal is distinct from a court strictly so called by the informality of its procedure and by applying a human approach to the questions that arise. In this sense the Income-tax Tribunal is certainly an administrative tribunal. But I think that is its strength instead of being its weakness. II has resulted in a speedier disposal. It has conferred great benefit on smaller assessees. An assessee can appear before the Tribunal himself or through anyone he likes. In the large majority of cases, he can lay his cards before the Tribunal as a lay man and leave it to apply the law to the facts that appear before it. It is, therefore, right that the Tribunal does not conduct its business with formalities. It is good that the Tribunal does not by its procedure in spite in parties appearing before it that awe which an austere court of law would. I believe the latter attitude would be wholly unsuited to the Tribunal and would result in defeating justice. This procedure also results in the great benefit of reducing costs of litigation. I believe I am right in saying that there is a very large number of assessees who never aspire to go beyond the Tribunal and who, I am sure, return home happy after their cases have been heard and decided by it. I gather that the Income-tax Appellate Tribunal was created so as to provide assessees with a thoroughly impartial court of facts. As such, it has fully justified its existence. I find from the article of Mr. Palkhivala, to which I have earlier referred, that only 4% of the cases decided by the Tribunal go to the High Courts on a reference. That would show that the Tribunals assessment of facts is very largely accepted. In dealing with facts, the tribunal has necessarily to approach things from a point of view different from that of an ordinary court law. Assessment cases cannot be conducted according to the Evidence Act. The evidence in such cases is largely in the hands of one side only. To a conventional Judge, that adds to difficulty of the case, The Tribunal has, notwithstanding the ex-part nature of the evidence, to approach the uestion with sympathy and not with an over dose of suspicion. That is a difficult job and from the little experience that I have gathered in hearing income-tax references in the High Court and the Supreme Court I can say that it is not often that a legitimate grievance can be made against the Tribunal's decision of facts. I would now refer to another aspect of the Tribunal's work. I have found in my experience that income-tax cases provide one with very great intellectual pleasure. The points involved are not confined to the Income-tax Act. Questions of great nicety and interest relating to other branches of law very often arise. A member of the Tribunal must have a comprehensive knowledge of aw in general. He must acquire a high order of legal acumen to be able to distinguish between one precedent and another: the precedents are innumerable and the distinction between them is of the finest edge. In this regard, I have found the judgments of the Tribunal of the highest excellence. With the addition of new statutes to taxing laws such as statutes relating to Wealth Tax. Gift Tax, Estate Duty and other similar taxes, the Tribunal has now to face a heavier burden. Its equipment must include the knowledge of these new statutes. Its burden is going to be increased. I am sure, it will be able to discharge its new duties with credit. I would here observe that I have been impressed by the clarity, precision and above all by the conciseness of the Tribunal's judgments. They are comparable in quality with judgments of any other court. I suppose it is commonsense to say that if we want quality of work, we should be prepared to pay for that. it is true that times are hard both for the Government and for the people at large. It is necessary, however, that the conditions of service and remuneration of the members of the Tribunal should be such that they can work with dignity and without worries. A worried man can never do his best. It will be for the Government to consider whether the remuneration offered to the members of the Tribunal is adequate. It cannot be said that there is no room for consideration in this regard"
SHRI NANI A. PALKHIVALA, THE EMINENT JURIST AND TAX PRACTITIONER
ARTICLE "An informal atmosphere prevails in the Tribunal and cases are allowed to be argued, not only by lawyers but by accountants, Income-tax practitioners , relatives, officers of companies and other representatives. Secondly the Tribunal, unlike a Civil Court, is not bound by the rules of evidence. It is permitted, in fact expected, to do substantial justice, bearing in mind (if one may adapt the historic dictum of Justice Holmes) that there is a limit to the nicety of inquiry which is possible in a tax appeal. Relevant and even material facts, which the Tribunal reality takes into account, would be exiled from the records in the Civil Court on the ground that they do not pass the tests of the Evidence Act. The Tribunal's work often involves investigation of facts embedded in accounts kept in a variety of languages and in documents which are not formally proved. In a sizeable number of cases the Tribunal is constrained to make merely rough guesses at truth. The decisions rendered by the Tribunal have, by and large been distinguished by sturdy independence and a desire to do justice." The work and reputation of the Income-tax Appellate Tribunal afford a striking illustration of what Professor H.W.R. Wade said at the end of his book "Towards Administrative Justice" "No class of people stands to benefit more in the long run from just administration than the administrators themselves, because the state is permeated from top to bottom with the truth that government depends upon the approval of the governed. Fair play in administration with enlist the citizens sympathies and will enormously reduce the friction with which the machinery of government works. All good administrators should take care that the machinery is properly tended and that the lubricant of justice is supplied in the right quantity at the right points."
SHRI R. S. GAE, FORMER SECRETARY MINISTRY OF LAW "As an institution it has fulfill its purpose. Its members with their wide experience and practice are well qualified to decide, and do decide, questions of facts as well as law satisfactorily in a vast majority of ceases and have on the whole proved worthy of the confidence reposed in them by the members of the legal and accountancy professions as well as by the taxpaying public. In the end it may be added that though there is scope for some improvement, the Appellate Tribunal has on the whole achieved considerable success in the difficult task of holding the balance even between the Revenue and the tax payer."
SHRI M. P. CHITALE, FORMER PRESIDENT, THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA "As an appellate authority the Tribunal is unique for it provides not only the expertise in technical matters and tax laws and introduces informality in procedure, but it combines these qualities with the quality of judicial independence."
SHRI SANAT P MEHTA ADVOCATE, BOMBAY The Tribunal can well be proud of its performance in the past. The expeditious and relatively cheap justice 1 administers can stand out well in contrast to the delay and cost of justice in regular courts of law. Any scheme of tax administration must mean the continuation of the Tribunal, though with a more realistic approach to the various problems facing the Tribunal at present to enable it to make its past look dimmer by its future performance. If any change has to be made, none could be better than elevation of the position of the Tribunal."
SHRI G., P. KAPADIA FORMER PRESIDENT OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA "It may however, he stated that members recruited from the Department have exhibited considerable talent and have earned the respect and consideration of the taxpayer and the general public'
SHRI C. SAMPATH IYENGAR, SENIOR ADVOCATE, CALCUTTA If one's experience of the time taken in disposals of appeals before the High Court be regarded, it can safely be said that the work done in one year by the Tribunal would have occupied several years in the High Court. The Tribunal has indeed good reasons to be proud of its work."
SHRI C. C. CHOKSHI FORMER PRESIDENT, INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA From my personal experience I should also add that the Tribunal members have succeeded in creating a proper image of that institution in the minds of the public. They have not remained in ivory tower of their own, but have taken pains to properly understand the point of view of the assessees. The Institute of Chartered Accountants of India is justifiably proud that its members in practice have always expressed satisfaction of having received fair treatment from the Members of the Tribunal. The Members of the Tribunal have often co-operated with the Members of the Institute in academic functions by attending and participating in lecture meetings and other functions organized at regional level"
SHRI KIRPA RAM BAJAJ SENIOR ADVOCATE, SUPREME COURT The Tribunal has been and is performing its judicial functions in a very admirable manner to the great satisfaction of the public. Their decisions are based on a dispassionate consideration and purely on merits and in accordance with law. As persons of experience, integrity and impartiality they decide cases quickly holding the scale of justice evenly between the State and the citizens, without fear or favour. A study of the Supreme Court judgments would reveal that mostly the view taken by the Tribunal has been confirmed by their Lordships of that August Legal Forum of the county. This bears an eloquent testimony to the quality and merit of the judicial work which the Tribunal is doing."
SHRI C. R. PATTABHI RAMAN, MINISTER IN THE MINISTRY OF LAW 'I make bold to say that the machinery has fulfilled its purpose. On the whole the public has expressed confidence in the dispensation of justice in the Appellate Tribunals in a comparatively cheap and expeditious manner and is satisfied with its working. Several improvements have been made in recent years in the method of recruitment of the members of the Appellate Tribunal and with regard to the salaries payable and other conditions of service applicable to them so that better talent court be drawn from the legal and accountancy professions. The Tribunal can claim to have achieved considerable success in the task of holding balance even between the revenue authority and the tax payer. The consensus of opinion among tax payers, lawyers, accountants and the litigant public has open favorable to the Tribunal. It may be of interest to know that the number of appeals and applications instituted in the Tribunal is in the region of 22000 per year. About 90 percent of the appeals disposed of by the Tribunal do not go on a reference 10 the High Court. The Tribunal's judgments on points of aw are upheld in over two-thirds of the references by the Supreme Court, the Tribunal's decisions were upheld in 72 cases- I am aware that the Tribunal's work often involves investigation of facts embedded in accounts kept in a variety of languages and in documents, which may not have been formally proved."
SHRI SACHINDRA CHAUDHURI, FORMERUNION FINANCE MINISTER I heard 101 of statistics about the number of cases which have been upheld by the Supreme Court and soon. With utmost respect both the Supreme Court and the Tribunal I say that the test is not whether the Supreme Court has supported those judgments. The test is what has the taxpayer felt. I have been a pedestrian practitioner for quite a long time and in that pedestrian way I have appeared before the Tribunals, practically all over the country and I can ted this Tribunal that there has been general satisfaction with the orders they have made and the speed with which they have disposed of matters. We have not had long discussions on law, but I have always found that the Tribunal whatever its constitution was, has been fully aware of the provisions of not only the particular tax law which they had to administer, but also of the general rules of law which were inherent in the task which they had to discharge. Because of that, speeches did not need to have to be very long. Yard long judgments had not to be read out. Conclusions were arrived at fatrly quickly and as I said, with the satisfaction to the parties who were concerned, both the flevenue of the country and the assessees.'
SI-IRI C. K. DAPHTARV FORMER ATFORNEY GENERAL OF INDIA
Though it is said that statistics support only the statistician yet sometimes they serve to underline a point and it will not be out of place to mention some figures. Various Benches have for five years from 1958 to 1963 disposed of over 66000 appeals and in only about 1175 of them, that is 4% have there been references to the High Courts. The Tribunal's orders have been reserved in only a small percentage and even where there have been further appeals to the Supreme Court, great majority of the decisions have been upheld. These are figures which speak for themselves. The reasons are apparent. The Benches have been manned by men of ability whether they are judicial or Accountant members. They can do approach the problems that come before them in a manner not constrained by technicalities. That is necessary, seeing that the material before them is mainly in books of account and commercial documents, which can be scrutinized only by an approach based on a practical knowledge of how trade and industry work and of what is fair, rather than a legalistic attitude of mind. The countants, Income-tax practitioners, businessmen and indeed any one who can elucidate facts of a matter can appeal. The expenses is comparatively little and the Tribunal is readily accessible because of its mobility."
SHRI G. S. PATHAK FORMER UNION LAW MINISTER "....The Standard which this Tribunal has set, is a standard which should be followed by other Tribunals of this nature. This being one of the oldest Tribunals has properly set its standard, standard of integrity, standard of judicial independence, standard of aloofness and standard of a detached mind which is the characteristic of every judicial mind. This Tribunal has deserved, and rightly deserved, the tributes paid to it.
FORMER MINISTER OF STATE FOR FINANCE (SHRI JANARDHANA POOJARY In the 44 years of its existence the Tribunal has successfully adjudicated been the tax-payers and the Stale. The fact that the Tribunal disposes of appeals and applications within a year of their substitution is creditable indeed.
FORMER GOVERNOR OF PUNJAB (SHRI K.T. SATARAWALA) I would like to compliment the Tribunal on its efforts in the service of the country. Despite the tremendous workload and its arduous task and onerous possibilities, the Tribunal has been striving to settle the cases before it in the shortest possible time, with considerable success....
FORMER GOVERNOR OF HARYANA ( SHRI S.M.H. BURNEY) The Income-tax Appellate Tribunal is discharging its responsibilities in keeping with the highest traditions of our judiciary. Ills gratifying to know that the Tribunal is currently hearing appeals filed within last 6 to 15 months throughout the country and that 97 per cent, of its orders are upheld by the Supreme Court of India.
FORMER CHIEF JUSTICE,BOMBAY HIGH COURT (K.MADHAVA REDDY) The Income-tax Appellate Tribunals have earned the confidence of all concerned. The President and Members of these Tribunals have brought to bear upon matters coning up before them, their intimate knowledge of this particular branch of law and through appreciation of the problems of the tax-payers on the one hand and the priorities of public policy enumerated through law by the State. The tax matters that are pending in the several High Courts do not really reflect the large number of cases handled by the Tribunals. Only a few of them reach the High Courts by way of references and writ petitions. That speaks volumes of the efficiency of these Tribunals. There is already a wide consensus that the procedure of reference in tax matters should be done away with and that the aggrieved party should be left to prefer an appeal. There is every reason to make these Tribunals final as far as the facts are concerned and provide an appeal to a Tax Bench of the Supreme Court. Instead of different High Courts taking divergent views and ultimately the Supreme Court deciding the references, a direct appeal to the Supreme Court may be preferable. But the only snag appears to be that the Supreme Court which is already overburdened would be flooded with cases from all over the country. A direct appeal to the Supreme Court may prove a hurdle to spaded disposal of these matters. However, Income-tax being a subject in the Union List, for ensuring certainty and uniformity, there should be a single authority to lay down the law for the entire country. The matter requires a critical examination..
FORMER CHIEF JUSTICE,DELHI HIGH COURT(SHRI PRAKASH NARAIN "The Income-tax Appellate Tribunal has made a name for itself and whenever any Tribunal is proposed to be set up, the example of your Tribunal is given as the ideal to be achieved. It is a matter of great pride for all of us. FORMER CHIEF JUSTICE, KARNATKA HIGH COURT (SHRI V.S.MALIMATH The Income-tax Appellate Tribunal has by its efficient functioning proved how useful it is to have Tribunals manned by specialists in the field to deal with specialized branches of litigation. I am particularly happy 10 know that the Bangalore Branch of the Tribunal is exerting itself to liquidate arrears expeditiously. I firmly believe that no judicial or quasi-judicial institution can justify its existence unless it realizes that it is accountable to render speedy and quality justice to the litigant public. VT NOVEMBER, 1976 SHRI H.R.GOKHALE, UNION LAW MINISTER (Loksabha debates (18* Session) on the Constitution (42~ Amendment) Bill)
I have got an example of the Income-tax Appellate Tribunal. We ha ye judicial members, we have the accountant members. The Tribunal is functioning extremely we land even those people who have gone before the Income-tax Appellate Tribunal have told me and have spoken on the public platform that the Income-tax Appellate Tribunal as it/s constituted today, is the best example to show how the tribunals if properly constituted, can create confidence. I can say that the Income-tax Appellate Tribunals decisions are rarely interface red with by the High Courts and the Supreme Court because the quality of their work has been found to be sufficiently good as to inspire confidence."
(MEMBERS CONFERENCE- 29.10.1977)
FORMER JUDGE, SUPREME COURT OF INDIA ( SHRI R. S. PATHAK)
FORMER CHIEF JUSTICE OF INDIA ( SHRI M.H. BEG) 1981
FORMER CHIEF JUSTICE OF INDIA ( SHRI Y.V.CHANDRACHUD
(DATED- JULY 15, 1981)
FORMER JUDGE, SUPREME COURT (SHRI JUSTICE A.C.GUPTA
FORMER JUDGE, SUPREME COURT OF INDIA (SHRI D.A.DESAI
FORMER JUDGE, SUPREME COUIRT OF INDIA( SHRI A.N.SEN
FORMER CHIEF JUSTICE, BOMBAY HIGH COURT ( SHRI .SDESHPANDE)
FORMER CHIEF JUSTICE, DELHI HIGH COURT ( SHRI PRAKASH NARAIN)
FORMER ACTING CHIEF JUSTICE, GAUHATI HIGH COURT (SHRI D. PATHAK)
FORMER CHIEF JUSTICE, KARNATAKA HIGH COURT
FORMER OFFICIATING CHIEF JUSTICE OF MADRAS HIGH COURT (SHRI P.R.GO KU LA KR ISH NAN)
FORMER CHIEF JUSTICE, MADHVA PRADESH (SHRI G. P. SINGH)
FORMER JUDGE, MADHVA PRADESH HIGH COURT (SHRI K.N.SHUKLA)
FORMER JUDGE, SUPREME COURT OF INDIA (SHRI A.K.SARKAR)
FORMER JUDGE, SUPREME COURT OF INDIA (SHRI H.R.KHANNA)
SHRI HARNAM SHANKAR,FORMER PRESIDENT, INCOME TAX APPELLATG TRIBUNAL
SHRI H.M. .JHALA, FORMER MEMBER, MRTP COMMISSION AND FORMER VICE- PRESIDENT, ITAT
DR. L.MSINGI-IVI, SENIOR ADVOCATE, NEW DELHI
SHRI SHYAM NATH 0, SENIOR ADVOCATE, FORMERLY UNION MINISTER OF LAW.
1981
FORMER CHIEF JUSTICE OF INDIA ( SHRI Y.V.CHANDRACHUD) (LETTER DATED- JULY 15, 1981)
FORMER JUDGE, SUPREME COURT (SHRI JUSTICE A.C.GUPTA) (Extract from letter dated 17" July, 1981 to the President of the Tribunal.) Income-tax Appellate Tribunal has earned confidence of the citizens by the way it has been discharging its responsibilities over the years FORMER JUDGE, SUPREME COURT OF INDIA (SHRI D.A.DESAI ) (Extracts from letter dated IG" July, 1981 to the President of the Tribunal) "Every institution has a personality, motive, objects and direction. A purposeful existence of any institution necessarily requires a continuous, watchful appraisal of its role, functioning, achievements and defaults. Once an institution is created for definite objects in view, occasionally the goals become blurred and the institution becomes static, and in the end it becomes counterproductive. As in the life of an individual so in the life of an institution re-adjustments of goals, priorities, methodology of functioning and evaluation of performance are the sine qua non. Income tax Appellate Tribunal can confidently look back on its performance of humanising a tough law. However, in the onward march of nation, industrilisation marching apace, complex tax problems are surfacing. Constitutional goals have provided guidelines. Public taxation is a recognised mode of removing disparities in wealth. The motto was :take more from those who afford so as to remove the tears of the less fortunate by welfare action of the State. A delicate balancing has to be struck between the needs of the society represented by the State and the claims of the individuals eschewing any tilting. Income-tax Appellate Tribunal has in the past held the balance evenly FORMER JUDGE, SUPREME COUIRT OF INDIA ( SHRI A.N.SEN Income-tax Appellate Tribunal has completed forty years of its existence. The Tribunal during its existence of four decades has done very useful work. By its performance the Tribunal has succeeded in inspiring confidence both of the Government and the citizens. The work done by the Tribunal has to a great extent lessened the burden of work of the Courts." FORMER CHIEF JUSTICE, BOMBAY HIGH COURT ( SHRI V. S. DESHPANDE) (Extract from letter dated 1St July, 1981 to the President of the TribunaL) "The Tribunal is manned by persons who are experienced either in law or in accountancy. Because of being independent of the Income-tax machinery, they can have an objective view of the controversies raised by the assessee before them. This also enables the assessees to have confidence in their verdicts whether they go in their favour or against them. The Income-tax Appellate Tribunal in this way is undoubtedly rendering useful service to the community. I wish you success ion your endeavour." FORMER CHIEF JUSTICE, DELHI HIGH COURT ( SHRI PRAKASH NARAIN) (Extract from letter dated 1Ot!~ July, 1981 to the President of the Tribunal) Indeed, I must compliment the Tribunal for having dispensed justice most impartially and keeping in view the interest of both the Revenue and the Assessee. The Tribunal has made valuable contribution to the Income-tax law and some of its judgments have been outstanding. In my court several former members of the Tribunal have acquitted themselves with great distinction. Two of the past Presidents of the Tribunal have been judges of the Delhi High Court. Mr. Justice M.R.A. Ansari was a very learned colleague till he went away as Chief Justice of the Jammu & Kashmir High Court. Mr. Justice S.Ranganathan is one of my valuable and eminent colleagues. It is heartening to see that the members of the Tribunal who become Judges of the High Court are not only adept in tax laws but are also able to handle with great credit matters in other jurisdictions. I have no doubt the Tribunal will continue to be manned by officers of great distinction." FORMER ACTING CHIEF JUSTICE, GAUHATI HIGH COURT (SHRI D. PATHAK) (Extract from letter dated 30th June, 1981 to the President of the TribunaL) "...The span of four decades of the Income-tax Appellate Tribunal is not merely a measure of its stature but it is the tradition which has been built up by this Institution. It is really a happy augury that in the Conference you are going to evaluate the achievements and failings during this period. I am quite sanguine that your deliberations will be fruitful and give a new guidance and direction for its purposeful activity in future. FORMER CHIEF JUSTICE, KARNATAKA HIGH COURT (SHRI D .M. CHANDRASHEKHAR) "...It is a well known saying that the strength of the Judiciary consists in the confidence it commands from people. Ultimately Judges are judged by people. The Income-tax Appellate Tribunal has undoubtedly commanded the confidence of both assessees and the Revenue. It can justly be proud of its record during these forty years. It has served as a model to other Appellate Tribunals FORMER OFFICIATING CHIEF JUSTICE OF MADRAS HIGH COURT (SHRI P.R. GOKU LAKRISH NAN) The usefulness of this Institution is felt by every one and it is discharging its functions to the utmost satisfaction of the governmental machinery and also the citizens in particular. Members of theses Benches have been drawn both from the Bar and also from the Service. They have showncourage and independence in dealing with intricate problems and have rendered decisions without tear or favour. How difficult it is to balance between the taxing machinery and the taxed, when especially several crores are involved in the disputes they decide. In such circumstances, the Tribunal Benches have shown much courages and proved their independence by deciding the cases before them impartially..' FORMER CHIEF JUSTICE, MADHVA PRADESH (SHRI G. P. SINGH) The Tribunal has every reason to be proud of its achievements during these years The Tribunal has the reputation of being fair and impartial and it has been disposing of the cases coming to it with reasonable speed. The Tribunal has thus gained confidence of both the Government and the taxpayer. Indeed, the Tribunal stands as a model for other tribunals and quasi-judicial authorities which have to decide disputes between the Government and the citizen. ." FORMER JUDGE, MADHYA PRADESH HIGH COURT ( SHRI K.N.SHUKLA) (Extract from letter dated 2& June, 1981 to the President of the Tribunal) I feel honoured in associating myself with this institution. For a very humble beginning it has blossomed into an effective and trusted institution of law and justice. My brief stint as Judicial Member of the Tribunal enabled me to appreciate the part it has to pay in the decision making process. Sometimes the stakes are very heavy, running into millions of rupees. The Tribunal has by and large remained uninfluenced by any pulls and pressures and has been imparting justice without fear or favour." FORMER JUDGE, SUPREME COURT OF INDIA (SHRI A.K.SARKAR) 'The Income-tax Appellate Tribunal has all along been doing excellent work and has acquired a great tradition for its judicial outlook of which any judicial body would be proud. On the occasion of its fortieth anniversary I send it my greetings for the excellence of its performance and wish that in the coming years it will acquire larger prestige and reputation." My brief stint as Judicial Member of the Tribunal enabled me to appreciate the part it has to pay in the decision making process. Sometimes the stakes are very heavy, running into millions of rupees. The Tribunal has by and large remained uninfluenced by any pulls and pressures and has been imparting justice without fear or favour." FORMER JUDGE, SUPREME COURT OF INDIA (SHRI A.K.SARKAR) "The Income-tax Appellate Tribunal has all along been doing excellent work and has acquired a great tradition for its judicial outlook of which any judicial body would be proud. On the occasion of its fortieth anniversary I send it my greetings for the excellence of its performance and wish that in the coming years it will acquire larger prestige and reputation." My brief stint as Judicial Member of the Tribunal enabled me to appreciate the part it has to pay in the decision making process. Sometimes the stakes are very heavy, running into millions of rupees. The Tribunal has by and large remained uninfluenced by any pulls and pressures and has been imparting justice without fear or favour." FORMER PRESIDENT, ITAT (SHRI HARNAM SHANKAR) (Extract from letter dated 24th February, 1981 to the present of the Tribunal.) 'With the passage of years the Tribunal has built up a personality and a tradition which have earned for it the respect and confidence of the tax payers, the tax practitioners and also of the Government. It is well recognised that the Tribunal is not trammeled in its work by formalities of procedure and legal technicalities, and this has enabled it to further the interests of justice. The Tribunal has been exhibiting judicial common sense, broad, liberal spirit and sturdy independence, combined with patience and courtesy, and above all a human approach brought to bear on the problems before it. The clarity, precision and conciseness of the Tribunal's orders have worn judicial approval at the highest level. SHRI H.M. JHALA, FORMER MEMBER, MRTP COMMISSION AND FORMER VICE-PRESIDENT, ITAT (Extract from letter dated 19 June, 1981 to the President of the Tribunal) 'My blessings and good wishes are always for the Tribunal and I look forward to the day when the Tribunal will be given the status of a Nigh Court and its decisions will be reviewable only by the Supreme Court. Your efforts to iron out the differences between the Benches of the Tribunal by constituting bigger Benches is, if I may say so, a step in the right direction. I hope and pray, with your stewardship, the Tribunal will go from strength to strength and will continue to occupy a prominent place amongst the Tribunals which have won the confidence of the people with whom they are concerned.' DR. L.M.SINGHVI, SENIOR ADVOCATE, NEW DELHI 'The Income-tax Appellate Tribunal is one of the most successful adjudicating institutions in the country. Over a span of four decades, it has earned public confidence in an ample measure and provides an exemplary model for other tribunals and authorities to emulate. To put it in a nutshell, the Income-tax Appellate Tribunal as an institution is what a tribunal should ideally be. The selection procedures for its composition are based on competitive merit. Members are experienced and specialized. They have intensive expertise in the field of income-tax law and they have a befitting breadth of outlook to tamper their specialization. The Tribunal has earned a well deserved reputation for independence and impartiality which is the hallmark of a successful judicial institution. The executive department does not possess or exercise any hold over the Tribunal. The Tribunal has generally kept the scales even between the Revenue and the cigtizen. There is neither fear nor favour, neither affection nor ill-will in the course of adjudication in the Tribunal. Hearings in the Tribunal are conducted in a judicial atomosphere and with courtesy and urbanity. The pace is purposive but polite. Proceedings are swift without being rude or abrupt. Both sides know that the Tribunal will do its best to do what is right and lawful. The Tnbunal commands the confidence of the citizen. The Revenue cannot and does not take it for granted and has learned to respect it as an impartial and independenf forum. Errors evidenced by reversals are few and far between, It is only in a few cases that High Courts and the Supreme Court have interfered with the conclusions reached by the Tribunal. Cases in which the Tribunal has been faulted in matters of procedure are rare. Law's delays are minimal. Arrears are not alarming. The Tribunal works without being clogged and in an harmonious tenor. It has proved to be an asset in the tax adjudication system and it is largely responsible for a consistent framework of interpretation and application in the field of income-tax law. The country can be proud of the record of the Tribunal which has impressive credentials of its four decades of successful working. Its remarkable record of achievements will continue to give it strength and vitality and will assure it a place of honour in our adjudication system.' SHRI SHYAM NATH KACKER, SENIOR ADVOCATE, FORMERLY UNION MINISTER OF LAW. (Extract from letter dated 2Gm July, 1981 to the President of the Tribunal) 'I have no hesitation in saying that this is one of the Tribunals which has equally inspired the confidence of the Assessee and the Revenue. Some of the members of the Tribunal have been elevated as Judges of the High Court. I am firmly of the view that in its quest for competent and independent Judges the government of India would do in its quest for competent and independent Judges the government of India would do well to failback upon this institution more often than it has been done in the past.
MEMBERS CONFERENCE HELD ON 9-12.3.1985 FORMER CHIEF JUSTICE OF INDIA (SHRI Y.V.CHANDRACHUD) "The Income-tax Appellate Tribunal occupy a place of honour in the sphere of taxation by reason of the competence oand independence of their Members. Indeed, it would be no exaggeration to say that the experiment of setting up Tribunals in our country received its primary impetus and inspiration from the successful functioning of the Income-tax Appellate Tribunals. / look forward to the day when the legislature will provide for the adjudication of tax matters by Income-tax Tribunals under Article 323-B of the Constitution of India. Such a step will give to the Tribunals a status which they deserve richly"
VICE-PRESIDENT OF INDIA ( SHRI R.VENKATARAMAN)
"Government has introduced Articles 323A and 3236 in the Constitution of India providing for the appointment of Tribunals to ensure quick, cheap and informal service in different disciplines. It is gratifying that the income-tax Appellate Tribunal has a fine record of disposal of appeals and applications filed before it within a year. Delay in disposal of tax disputes hurts both the Government as well as the assessees and expeditious disposal is preferred by the assessees themselves. I am sure, the Appellate Tribunal will endeavour to further reduce the time of disposal and thus render greater service to the people. I congratulate the Tribunal on the excellent work it has been doing."
FORMER PRIME MINISTER OF INDIA (SHRI RAJIV GANDHI) DATED-MARCH 4, 1985
FORMER VICE PRESIDENT OF INDIA AND CHIEF JUSTICE OF INDIA (SHRI M.HIDAYATULLAH) "I The Tribunal in dealing with its difficult task has shown no leaning one way or the other and has held the scales even between the revenue and the taxpayers, something which speaks very highly of its members' sense of justice." FORMER MINISTER OF FINANCE, COMMERCE & SUPPLY (SHRI VISHWANATH PRATAP SINGH) "...Income-tax Appellate Tribunal has been known for a commendable performance in the Income-tax set up and I am sure the deliberations of the Conference would bring out ways and means in the direction of expeditiously reducing income-tax litigations." FORMER JUDGE, SUPREME COURT OF INDIA ( SHRI RN. BHAGWATI) This Tribunal has been in existence for over 35 years and during this period it has acquired high prestige and reputation not only amongst the lawyers practising before it but also amongst the assessees as well as the department. It has been able to inspire confidence in the public mind in regard to its calibre, integrity and independence. It has been doing justice boldly and fearlessly and many decisions given by it have involved large monetary stakes and yet it has not hesitated to decide in favour of the assessees. The greatest tribute was paid to it some years also when the assessees and the leading income-tax practitioners strongly opposed a suggestion put forward by a retired Chief Justice of India that appeals on questions of law should be directly to the High Court from the decisions of the Appellate Assistant Commissioner without the intervention of the Income-tax Appellate Tribunal. The reason why the Income-tax Appellate Tribunal has been able to acquire such large credibility with the people is that the appointments of the Members of the Tribunal are made by a high powered selection authority presided over by a sifting Judge of the Supreme Court nominated by the Chief Justice of India. In view of this mode of selection, there is no scope for nepotism, corruption or political patronage and selections are made purely on the basis of merit and competence. There are quite a few tribunals in the States which have failed because the mode of appointment on those Tribunals is not insulated from political or other interference. If only an independent mode of appointment were adopted which would eliminate all forms of pulls and pressures and which would ensure selections purely on the basis of merit, we would be able to set up a really effective hierarchy of FORMER JUDGE, SUPREME COURT OF INDIA (SHRI RN. BHAGWATI) This Tribunal has been in existence for over 35 years and during this period it has acquired high prestige and reputation not only amongst the lawyers practising before it but also amongst the assessees as well as the department. It has been able to inspire confidence in the public mind in regard to its calibre, integrity and independence. It has been doing justice boldly and fearlessly and many decisions given by it have involved large monetary stakes and yet it has not hesitated to decide in favour of the assessees. The greatest tribute was paid to it some years also when the assessees and the leading income-tax practitioners strongly opposed a suggestion put forward by a retired Chief Justice of India that appeals on questions of law should be directly to the High Court from the decisions of the Appellate Assistant Commissioner without the intervention of the Income-tax Appellate Tribunal. The reason why the Income-tax Appellate Tribunal has been able to acquire such large credibility with the people is that the appointments of the Members of the Tribunal are made by a high powered selection authority presided over by a sifting Judge of the Supreme Court nominated by the Chief Justice of India. In view of this mode of selection, there is no scope for nepotism, corruption or political patronage and selections are made purely on the basis of merit and competence. There are quite a few tribunals in the States which have failed because the mode of appointment on those Tribunals is not insulated from political or other interference. If only an independent mode of appointment were adopted which would eliminate all forms of pulls and pressures and which would ensure selections purely on the basis of merit, we would be able to set up a really effective hierarchy of administrative tribunals. It is a matter of great satisfaction to find that the Government of India has now decided to set up Administrative Tribunals to deal with cases arising in various branches of law but these Administrative Tribunals will not succeed in inspiring confidence in the public mind, unless a satisfactory mode of appointment is devised and, in my opinion, the mode adopted in making appointments on the Income-tax Appellate Tribunal can and must be followed if we want to make our Administrative Tribunals successful.." FORMER JUDGE, SUPREME COURT OF INDIA (SHRI R. S. PATHAK) The Income-tax Appellate Tribunal is an outstanding example in this country of what an Appellate Tribunal should be. It has developed traditions over the years which have uniformly inspired public confidence, not only by the high quality of adjudication but also by the expeditious manner in disposing of its work." FORMER GOVERNOR OF PUNJAB (SHRI K.T. SATARAWALA) I would like to compliment the Tribunal on its efforts in the service of the country. Despite the tremendous workload and its arduous task and onerous responsibilities, the Tribunal has been striving to settle the cases before it in the shortest possible time, with considerable success.... FORMER GOVERNOR OF HARYANA (SHRI S.M.H. BURNEY) The Income-tax Appellate Tribunal is discharging its responsibilities in keeping with the highest traditions of our judiciary. It is gratifying to know that the Tribunal is currently hearing appeals filed within last 6 to 15 months throughout the country and that 97 per cent. of its orders are upheld by the Supreme Court of India." FORMER CHIEF JUSTICE, BOMBAY HIGH COURT (K.MADHAVA REDDY "The Income-tax Appellate Tribunals have earned the confidence of all concerned, The President and Members of these Tribunals have brought to bear upon matters coming up before them, their intimate knowledge of this particular branch of law and through appreciation of the problems of the tax-payers on the one hand and the priorities of public policy enumerated through law by the State. The tax matters that are pending in the several High Courts do not really reflect the large number of cases handled by the Tribunals. Only a few of them reach the High Courts by way of references and writ petitions. That speaks volumes of the efficiency of these Tribunals. There is already a wide consensus that the procedure of reference in tax matters should be done away with and that the aggrieved party should be left to prefer an appeal. There is every reason to make these Tribunals final as far as the facts are concerned and provide an appeal to a Tax Bench of the Supreme Court. Instead of different High Courts taking divergent views and ultimately the Supreme Court deciding the references, a direct appeal to the Supreme Court may be preferable. But the only snag appears to be that the Supreme Court which is already overburdened would be flooded with cases from all over the country. A direct appeal to the Supreme Court may prove a hurdle to speedy disposal of these matters. However, Income-tax being a subject in the Union List, for ensuring certainty and uniformity, there should be a single authority to lay down the law for the entire country. The matter requires a critical examination..." FORMER CHIEF JUSTICE,DELHI HIGH COURT (SHRI PRAKASH NARAIN "The Income-tax Appellate Tribunal has made a name for itself and whenever any Tribunal is proposed to be set up, the example of your Tribunal is given as the ideal to be achieved. It is a mafter of great pride for all of us. FORMERCHIEF JUSTICE,KARNATKA HIGHCOURT(SHRI V.S.MALIMATH The Income-tax Appellate Tribunal has by its efficient functioning proved how useful it is to have Tribunals manned by specialists in the field to deal with specialised branches of litigation. I am particularly happy to know that the Bangalore Branch of the Tribunal is exerting itself to liquidate arrears expeditiously. I firmly believe that no judicial or quasi-judicial institution can justify its existence unless it realises that it is accountable to render speedy and quality justice to the litigant public.
GOLDEN JUBILEE Administrative justice demands compromise. There is no pre-determined solution to the problem of tempering power with justice. The Tribunal has rightly earned the reputation of tempering judicial power with justice. It has evolved a cheap, quick and informal procedure for doing justice as between the State and the citizen, to the great satisfaction of the litigating public. In other words, it has acted as a Court of law in everything but name, while avoiding the regular process of civil law which is too cumbersome, technical and expensive."
SHRI Y.V.ANJANEYULU, FORMER JUDGE, ANDHRA PRADESH HIGH COURT AND THE THEN MEMBER, LAW COMMISSION OF INDIA IN HIS ARTICAL "17. The discussion regarding the setting up and functioning of the administrative and quasi-judicial tribunals in this country should lead to a two-fold acknowledgement: firstly, that these tribunals established as independent organs under different Statutes for specified purposes are functioning competently, independently and without bias; secondly, these tribunals have been able to instil confidence in the public that the dispensation of justice by these tribunals is less espensive, expeditious and effective. Acknowledgement in the above two directions is forthcoming ungrudgingly from the public, the legal and accountancy fraternity appearing before the tribunals and from the State as welL The administrative and quasi-judicial tribunals in our country can be legitimately proud of their achievements and claim for appropriate recognition that they have served objectively the purposes for which they were set up. 24. What surprises me is not the real content of the write-up but the total and conspicuous absence of any reference to the 115th Report of the Law Commission of India dated August 28, 1986. The Law Commission examined the expediency and the necessity of setting up a "National Tax Court" as opposed to a tribunal and Article 323-B of the Constitution of India and strongly recommended to the Government, for the reasons stated in the Report, that a National Tax Court should be established. This is what the Law Commission of India has stated in para 2.26 of the Report "Having eliminated the possible source of delay and conflict in the interpretation of tax laws, a suitable forum must be created at a stage above the Income-tax Appellate Tribunal and below the Supreme Court of India which will have nation-wide jurisdiction. A Central Tax Court having an all-India jurisdiction would have two distinct advantages: (1) that it will introduce an all-India perspective in the matter of interpretation of tax laws and (2) conflicts of decisions amongst various High Courts making it obligatory for the Supreme Court to deal with the matter would be eliminated. There are some more incidental advantages which may be briefly narrated. A body dealing with specialist litigation round the year will acquire both speed and consistency in its views. A possibility of difference of opinion amongst Benches of the Central Tax Court can be easily resolved by a dissent being examined by a larger Bench of the Central Tax Court. Common questions of law arising isn a number of appeals coming before it can be dealt with by a common judgment. There will be thus unanimity in decisions, continuity and consistency in dealing with common questions arising before it. Therefore, a Central Tax Court at a stage midway between Income Tax Appellate Tribunal and Supreme Court of India must be set up." The Law Commission was conscious of the setting up of a tribunal undr Article 323-B of the Constitution but dismissed that idea as not compatiable. It would be pertinent to quote the following observations of the Law Commission in para 2.27 of 115th Report "2.27 What must be the format of the Central Tax Court? It appears that since the introduction of Part XIVA in the Constitution (Forty-second Amendment) Act, 1976, a belief has gained ground that appropriate legislature may set up Tribunals in respect of all or any of the viatters specified in clause (2) of Article 323-B with respect to which such legilature has power to make laws. Amongst the subjects referred to in clause (2), is levy, assessment, collection and enforcement of any tax referable to entries in the Union List. It is not disputed that a Tribunal having all-India jurisdiction can be set up to deal with levy, assessment, collection and enforcement of any centrally leviable tax. But this should not impede a further enquiry whether a court can be set up for the same purpose within the framework of the Constitution. And let it be remembered that there is a recognisable and visible difference between a court and a tribunal both with respect to its capacity, credibility and impart" 25. The Commission then examained the legislative competence and observed that "Entry 95 in the Union list dealing with the jurisdiction and powers of court, comprehended both the creation of courts, conferment of power and jurisdiction or extinguishment thereof." The Commission, therefore, opined that Entry 95 enables the Parliament to deal with the jurisdiction of a High Court. Therefore, on a conspectus of all these entries, Parliament will have power by law to set up a "Central Tax Court" or "National Court of Direct Taxes'. The Commission further observed The Commission if of the firm opinion tht such a Central Tax Court should not be a tribunal but a Court of Appeal with all its trappings and having an all-India jurisdiction. Those who have favoured to set up a national tribunal under Article 323-B appeared to have overlooked the fact that suitable legislation will have to be enacted for that purpose. If law has to be enacted, it would be comparatively advantageicus to set up a Central Tax Court rather than a tribunal envisaged by Article 323-B. Now that it is intended to confer jurisdiciton on the proposed Central Tax Court to deal with constitutionality of tax legislation, a tribunal would be of no use. Tribunal cannot examine the constitutionality of a Statute or subordinate legislation. This approach may, as a whole, defeat the charge of tribunalisation of justice. Therefore, the Commission is of the firm opinion tht a Central Tax Court/National Court of Direct Taxes be set up under an Act of Parliament having all-India jurisdiction." THE COMMISSION HASTENED TO ADD IN PARA 2.29 There is near unanimity of opinion that Income-tax Appellate Tribunal has immensely justified its existence and largely vindicated the trust reposed in it. It has, therefore, to be retained with its regional jurisdiciton. It would be the last fact finding authority. (Emphasis supplied) R K. KARTHA, VICE-CHAIRMAN (CENTRAL ADMINISTRTIVE. TRIBUNAL) -TRIBUNALS AS TEMPLES OF JUSTICE - A SURVEY- "5. The Income-tax Appellate Tribunal (ITAT) is one of the oldest Temples of Justice in our country. The older the temple, the greater is its sanctity and reverence. 21. Similar Parliamentary law with respect to the Income-tax Appellate Tribunal, and the Customs, Excise and (Gold Control) Appellate Tribunal and in respect of the subjets enumerated in Article 323- B of the Constitution is long ovber due. The justification for this need not be overemphasised. Such a step is bound to help in the reduction of arrears in the High Courts and contribute to speedy rendering of justice to the assessee concerned. Unless this is done, Article 323-B of the Constitution will remain a dead letter, which was not what Parliament had envisaged in 1976." Created by : Income Tax Appellate Tribunal |