Cricket and Income Tax- what is similarity?
CA Umesh Sharma
Cricket and Income Tax, what is similarity, you must know it.
Arjuna (Fictional Character): Krishna, the 11th Cricket World Cup has been started in Australia. In these days 14 countries will compete against each other. In Cricket there is competition between two teams for winning. So please explain similarity between Cricket and Income tax in a sporty way that can be learnt with joy and in a playful manner.
Krishna (Fictional Character): Arjuna, Cricket is one of the most popular games in India and in many other countries. In Cricket matches, players of one team are playing with their competitors in a quest of collecting run. The same thing happens in Income Tax for collecting tax between the Taxpayer and Income tax officer. In Cricket for getting a wicket "Appeal" is made, likewise in Income tax if any dispute arises then "Appeal" can be made this is the similarity between Income Tax and Cricket. If a match of Income tax is played on the cricket field then Batsmen and Bowlers denotes Taxpayer and Income Tax officer, Umpire represents Income tax Commissioner, Third Umpire implies Tribunal, BCCI and ICC are like Courts and Income Tax Act is like Rules of games. One should not draw other meaning from this and should take it sportingly.
Arjuna: Krishna, In Income Tax why and when is the Appeal made?Krishna: Arjuna, Generally in Cricket, Appeal is made to the Umpire when dispute occurs on LBW, Run Out, Stumping etc. Umpire gives decision according to the rules of Cricket. Similarly in Income tax if dispute or difference of opinion occurs between Income tax officer and Taxpayer or if more tax is levied on the taxpayer then Taxpayer can file an appeal to Commissioner. Law has given the taxpayer the right to make an Appeal. In cricket the appeal of LBW is made, similarly as in Income Tax the appeal is made when a wrong meaning is drawn for the straight forward provision of law. Many times like appeal for Run out is made, in the same way appeal is made in Income tax i.e. when taxpayer pay less taxes and for that he has to pay Interest and penalty. In Income Tax the taxpayer may lose his wicket if he crosses the crease of Law, thus it is called 'stumping'. For e.g. if Cash payment exceeding Rs. 20,000/- is made for expenses, if Taxable Income is shown as Tax free, if any Income is not disclosed etc. Some Taxpayers by the fear of Income Tax officer pays the taxes, interest and penalty levied and is freed of complications. But those Taxpayers who think that they have transacted within the boundaries of Law, go for Appeal. The intelligent and experienced player knows when and how to make appeal and also on what time and on which topic just like a smart and knowledgeble taxpayer knows when to appeal.
Arjuna: Krishna, In Income Tax when, how and to whom can the first appeal be made?Krishna: Arjuna, in cricket the first appeal can be made to the Umpire. In Income Tax, taxpayer has two options either he can make revision under section 264 to Commissioner of Income Tax like a DRS in Cricket or he can prefer to appeal to Commissioner of Income Tax (Appeals) under section 246A of Income Tax Act. Generally taxpayer chooses to appeal under section 246A. This first appeal has to be made to Commissioner Appeal within 30 days of receiving Assessment order. If Appeal is not made within 30 days then he can again appeal in 60 days if he has a valid reason for delay. For making an Appeal taxpayer has to pay Appeal fees of Rs. 250/- if his income below Rs. l Lakh, Rs. 500/- if his income is in range of Rs. 1 Lakh to Rs. 2 lakh and Rs. 1,000/- if it exceeds Rs. 2 lakh. The Taxpayer, for filing an Appeal has to mention Statement of Fact, Ground of Appeal in Form 35 along with copy of Assessment Order, original copy of Demand notice and Challan of Appeal fees. Also the Taxpayer has to make Stay Application after filling of Appeal to Income Tax officer. an Umpire gives decision considering the rules of the International Cricket Council likewise in Income Tax Commissioner gives decision after considering the Income Tax Act and other judgments. These decisions may be given sometimes in the favor of the Bowler and sometimes in that of Batsmen. The situation of the Umpire and the Commissioner is the same. If an appeal is made on an irrelevant issue or if an appeal is made on the same settled subject again then the Commissioner may demerit the appeal. On the cricket ground if players argue then penalty against them may be levied. Likewise in income tax penalty is levied for willful default. Therefore in Cricket and Income Tax one should have sportsman spirit, otherwise one will have to bear the consequences. If the decision of Commissioner Appeal is not acceptable then appeal can be made to third umpire i.e. Appellate Tribunal.
Arjuna: Krishna, when and how can a taxpayer file an appeal to appellate tribunal?
Krishna: Arjuna, In Cricket, players ask for a decision from third umpire. Similarly in Income Tax if decision of commissioner appeal is not acceptable then appeal can be made to appellate tribunal within 60 days from the date of communication of order of the Commissioner appeal. For making an Appeal taxpayer has to pay Appeal fees of Rs. 500/- if his income is below Rs. l Lakh, Rs. 1,500/- if his income is in range of Rs. 1 Lakh to Rs. 2 lakh and Rs. 10,000/- if it exceeds Rs. 2 lakh. For making appeal taxpayer has to file Form No. 36 in triplicate. Income Tax officers can also make an appeal to appellate tribunal only if taxes involved exceed Rs. 3 Lakh and permission is obtained from the department. So if any one makes an appeal to Appellate Tribunal then the other will have to submit memorandum of cross objection in Form No. 36A within 30 days from the date of receipt of notice. It means that all concerned have to give their opinions. Taxpayer can see the decision on the screen i.e. on itat.org website. Likewise in cricket the decision of out and not out is seen on the big screen.
Arjuna: Krishna, what option is available to taxpayer, if decision of Appellate Tribunal is not acceptable?
Krishna: Arjuna, Appeal is made on two grounds 1) on Question of law 2) on Question of Fact. Appeal on Question of law can only be made in High Court and then to the Supreme Court. In Cricket on complicated questions like match fixing, behavior of player,etc appeal can be made to BCCI or ICC and these organizations may take the decision. Similarly on the questions related to income tax act only appeal can be made in High Court and then in Supreme Court and these courts may solve the questions. Like in cases of Cricket and Income Tax are IPL Match Fixing, Black Money, etc.
Arjuna: Krishna, What one should learn from the concept of "Appeal"?
Krishna: Arjuna, It is said that cricket is a Gentlemen's Game. Likewise in Income tax, taxpayer should act like a gentlemen and be ready to fight for the truth. Today's world has become like a 20-20 match. Everyone wants money, profits and if arguments arise its decision is wanted quickly. However while tax planning some decisions go wrong. For justice an honest taxpayer should fight and should not get frightened. Law is same for everyone but taxpayers using it are different. Like in cricket one should not tamper with the ball, similarly one should not tamper with the laws. Life is like a game of cricket, it should be played sportingly. One should not be depressed due to Loss or get over excited due to Victory. Best of luck to Indian Cricket team and hope World Champion title is retain by team again.
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Rajesh Keshav Pillai vs. ITO (ITAT Mumbai), ITA No. 6661/Mum/2009, Date- 13th August, 2010 In case of multiple sale and purchase of residential houses, the exemption cannot be calculated considering the aggregate of capital gain and aggregate of investment in the residential houses. The exemption will be available in relation to each set of sale […]
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Where more than one residential house is purchased out of the sale proceeds of one residential house, exemption u/s 54 can be claimed only in respect of one house, provided the other conditions of Sec 54 are satisfied. [K.C. Kaushik v ITO 185 ITR 499 (Bom.)(1990)].
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