The Income Tax department has claimed that allegations projected by industry leaders Kiran Mazumdar-Shaw and Mohandas Pai are false. These leaders purported that the tax officials are heckling businessmen. This contention got wings to roar in the recent deathwatch of the VG Siddhartha, founder of Café Coffee Day (CCD).
Pai who was a former director at Infosys Ltd told that taxmen who do not meet their annual tax collection ground-zero, pressurise the companies for paying the taxes even when they are not in consonant with the amounts sought, this consequences to litigation.
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Mazumdar-Shaw who is a chairperson, MD and a founder of biopharmaceuticals firm Biocon Ltd, informed that she recently got a call from a government official asking her not to comment or speak on issues like income tax harassment.
A Central Board of Direct Taxes (CBDT) falsified these claims while speaking on the state of anonymity. The tax official dismissed the in-depth details about how certain cases are managed.
Every year, the tax department forms a strategy for the optimal tax collection and restoration of tax deficiency. Senior officials who are responsible for field collection from some particular regions, over and overindulge into informal communication with big assessees under their authority, insisting them to pay the advance taxes before the deadlines.
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In general, the taxmen are forced to have an innovative approach for recovering the tax arrears when they have to deal with with the companies who are exercising aggressive tax averting methods and this ruins the strings between tax department and businesses.
Modi government took a step in this regard, 25 senior officials of direct and indirect administrations were effectively retired on the grounds of corruption and illegitimate gratification. Pending cases which were filed by different central agencies such as the Central Bureau of Investigation (CBI) and the Directorate of Revenue Intelligence (DRI), are lying against the officials.
Pai challenged the arresting power given to the tax officials in addition to the demand for an independent investigation into the demise of VG Siddhartha. The dead body of the founder of CCD was found in the Nethravathi river of Mangaluru and the letter wrote by him makes it apparent that he was over-pressurized by one of the private equity investors and harassed by a taxman.
