Tax Practitioners from Jalandhar submits Pre-Budget Memorandum to FM

The Income Tax Bar, Jalandhar has submitted a pre-budget memorandum to the Finance Minister suggesting changes to be included in the Union Budget 2019.

The Income Tax Bar, Jalandhar is a registered body representing Chartered Accountants and Advocates engaged in representation and filing work of Income Tax Returns from Jalandhar, Hoshiarpur, Kapurthala, Nawanshahar, Phagwara etc. The Income Tax Bar consists of more than One Hundred Members who represent the major chunk of taxpayers in the above-mentioned cities. The Income Tax Bar is always working for the knowledge updating, technological changes and strive for knowledge sharing and excellence in the field of taxation.

“The Income Tax Bar believes in maintaining good cordial relations with the Income Tax and GST Authorities and keep them informed about the difficulties faced by the general public on day to day matters. It is understood that the Union Budget, 2019 is likely to be tabled in the Parliament on 5th July, 2019 by your good self, the prestigious Income Tax Bar, Jalandhar would like to give few recommendations/suggestions by way of Memorandum as called for by your office for considering them while framing and tabling the budget in the Lok Sabha,” the memo said.

The suggestions include the amendment in section 273B. With regard to the imposition of penalty under the said section, the memorandum said that for non-imposition of penalty in section specific violations as mentioned therein in the event of a reasonable cause shown to the satisfaction of the authority. The expression reasonable cause as mentioned therein is capable of stretchy meanings/interpretations with one set of cause meeting the ends of reasonability while the other may not.

“In view of discretion based concession and in view of different meanings accorded to the expression `Reasonable Cause’, a need arises as to what constitutes `Reasonable Cause’ in a different set of facts,” it said. Therefore, it is suggested that since the expression `Reasonable Cause’ has per se not been defined in the statute and is at the mercy of the authority concerned, its abuse cannot be wholly ruled out. In addition, technical glitches/snags on the internet at the time of uploading / e-filing the reports/documents required to be electronically uploaded on the portals also be considered to be a reasonable cause for the purpose of levying penalty under the section specific violations expressed for in provisions of section 273B of the Act.