Not just brickbats, some bouquets too…

A taxman’s job is necessary for a nation, through which it mobilises the resources it needsfor the development and welfare of its people. But the taxman’s job is a thankless job, and most people hate it when the taxman comes a calling…. But there are exceptions!

The Income Tax department is a very important department, as it mobilises resources for the country. The country cannot move forward if there is no money in its kitty. The money collected is spent for the development of the country and on welfare measures for the country.

“Taxation is the price which civilised communities pay for the opportunity of remaining civilised,” said Albert Hart. But the fact remains that taxmen are the most hated lot. Nobody likes a taxman if he asks you to pay more tax than paid as per your tax returns. Nobody thanks a taxman if he summons a taxpayer or initiates some enquiry as per the tax laws. He does this for the country without any evil intention, but his job remains thankless, though his services may be valuable. In this negative background, a taxman does meet some really good people, who not only thank him but leave behind a deep imprint on the taxman. In this context, I recollect my interactions with some really good people, who thanked me and even came forward to offer me personal help.

UNSOLICITED HELP

To begin with, I remember a person who came to offer me help after six months of closing his case, and that too after raising a tax demand of a significant amount against him. His income tax records seemed clean and I was the first taxman to go for an in-depth scrutiny of his tax return. His was a leading advertising company of the country. I worked with enthusiastic zeal in scrutinising his tax return. Maybe due to my lack of knowledge of the mechanics of the advertising business, I probably asked him too many questions. The chairman of the company started visiting my office personally to answer my questions, as his chartered accountant was unable to reply to my queries properly. With due respect to the chairman, I proceeded to pass an adverse order against the company. He happened to be the topper at IIM-A, probably of its first batch. I said sorry to him and parted amicably.

After six months, I was transferred from Mumbai to Ahmedabad. I was in a sad state of mind due to the transfer and because of some personal problems. Suddenly one day, before handing over my charge in Mumbai, the gentleman came to my office and told me that he had heard about my transfer and he offered me help in stopping my transfer in case I so desired. He told me that he personally knew my top bosses and that he was competent enough to do the work. I was really touched and told him that though he was harmed by me, he had come to offer me help. I politely declined his offer as it was against conduct rules and I went on to join my new assignment at Ahmedabad. His words, which I still remember, were that he admired my sincere and honest way of doing my job, such government officers were needed, and that they should also be helped. He told me that the adverse order passed by me could be fought in appeal, but a good taxman should be encouraged in doing his work. I had no words for him for this kind gesture.

'He told me that prior to the search he never slept well, as he was always afraid that he could be raided. After he lost all his wealth in the search action, he also lost his persistent fear of adverse actions against him and then he started getting good sleep and peace of mind. It was like one who is down fears no fall'

LEGAL BEACONS

In 1979, when I was posted in Mumbai, my jurisdiction included assessment of income of advocates and solicitors in higher income brackets. Most of the big names practising in the Supreme Court from the Bombay bar were also under my jurisdiction. I got gratitude and respect from the top-most jurists of the country when I was still an unknown young officer

To begin with, I take the name of the highly respected Nani Palkhivala. He used to come personally along with his CA for each hearing. I told him that I had nothing on which to question him. His reply was that he came only to give respect to the chair of the tax officer. He said that he also wanted to know the officer personally and thank him for the work being done by him. Similar had been the case with other highly respected luminaries like Fali S Nariman, S. A. Shroff, Sanat Mehta, etc., who always came personally for their hearing and used to give me a lot of respect. One very respected counsel thanked me when I discovered that he had missed to include his honorarium for taxation which he had got from a big US university. He accepted that as an inadvertent mistake and apologised, after thanking me.

'Nobody thanks a taxman if he summons a taxpayer or initiates some enquiry as per the tax laws. He does this for the country without any evil intention, but his job remains thankless, though his services may be valuable'

UNWELCOME INTRUDERS

Search action is the harshest action under the Income Tax Act. During the search proceedings, the inmates of the house or office have to face a certain amount of hardship. After the search action, the assessment proceedings and raising of the tax demand are resented. The taxmen conducting the search action are always treated as unwelcome intruders. I have been associated with search actions over eight years in Mumbai and had got accustomed to the brickbats, but I also have some surprising moments to relate.

I cannot forget a search action against a middle-level businessman. The search action had unprecedented success and we seized all that he had. He had earned only in black money, and the same was being invested in expanding his power loom business in Bhiwandi. He even confessed about the pagdi (amount paid in cash in acquiring tenanted properties in Mumbai) for which there was no documentary evidence. At the end of the search, I felt bad for the businessman, but I consoled myself saying I had done my duty.

After about one year after the search, the same businessman visited me in my office, and to my surprise, he thanked me for conducting the search against him. He told me that prior to the search he never slept well, as he was always afraid that he could be raided. He told me that he had come to Mumbai from Rajasthan as a young boy with only Rs.100, and that he had created the wealth through hard work. He had started as an attendant in a cloth shop and gradually became a power loom owner. He told me that he knew the art of making money but being illiterate, did not know how to keep the money. After he lost all his wealth in the search action, he also lost his persistent fear of adverse actions against him and then he started getting good sleep and peace of mind. It was like one who is down fears no fall.

He said he was not nervous due to the loss of his wealth, as he was confident he would earn it again in a short while. But, this time, he had resolved to pay tax and for that, he had decided to take good professional help. He told me that in the last year, his business was back on the right track and that he was relaxed as there was nothing to hide. He told me that he came to thank me for bringing a good change in his life. He attributed his new and better life to the search action conducted by me against him. His gratitude gave me immense happiness as well, as it lessened the pain in my heart which had been caused by that search action.

‘Search action is the harshest action under the Income Tax Act. During the search proceedings, the inmates of the house or office have to face a certain amount of hardship. After the search action, the assessment proceedings and raising of the tax demand are resented. The taxmen conducting the search action are always treated as unwelcome intruders'

UNITED BY ADVERSITY

Another incidence of gratitude after a search action was also very touching, as it had to do with a relationship. It was in 1996, and I was posted in the investigation wing of the Mumbai Income Tax department. There was a mass income tax raid in Bollywood, and I was one of the senior participants on these raids. Roughly about 25 leading actors, actresses, directors, producers and financiers were covered. It was a big media headline those days, as almost all big names were hit.

Post the search actions, the relevant persons had to attend our office in pursuance of their summons. Among them was one leading actress who would come to my office to report to my young subordinate officers. As a preventive measure against any complaint against my young officers, I ordered that the young lady had to visit our office along with her parents. My order was duly complied with, and she visited our office roughly four to five times, and always with her parents.

At the end of the proceedings, her parents came to my office along with her and thanked me. They told me that they were an estranged couple, living separately, though not divorced. They seemed very happy that due to my order, they used to be together while coming to the income tax office. They thanked me for their togetherness, though it was the result of harsh search action. Even the actress was happy for the happiness of her parents. The pain of the search action was forgotten!