*Courtesy Wicked Witch of Worcester
X Files
*Courtesy Wicked Witch of Worcester
An excerpt from the book "Revolutionary Wealth" by Alvin & Heidi Toffler.
As a then-leading member of the U.S. Senate, Connie Mack, once complained to us:
We never have more than two and a half uninterrupted minutes for anything on Capitol Hill. There’s no time to stop and think or to have anything approaching an intellectual conversation….
We have to spend two thirds of our time doing public relations, campaigning or raising campaign funds. I’m on this committee, that task force, the other working group, and who knows what else. Do you think I can possibly know enough to make intelligent decisions about all the different things I’m supposed to know about? It’s impossible. There’s no time. So my staff makes more and more decisions.
Vijayawada. That is the place chosen for me to begin my career. Everyone would like to work in metros and big cities. That is where the action for IRS lies. Big cases, complicated issues and ingenious chartered accountants collude to sharpen the learning curve. But small towns have their own charm, I was told. If you dispute my terming of Vijayawada as a ‘small town’, all I can say in defense is that small is relative. The last time I referred to Vijayawada as small, the listener broke into a sarcastic laugh. An accomplished bureaucrat who retired as Chief Secretary, he must have felt that I was being snobbish. I can’t blame him much. Even my batchmate in the IAS, who is posted in Eluru, protested instantly at my judgment of urban sizes.
It is characteristic of my service that we don’t begin with places like Rampachodavaram. Atleast not till the Government thinks of taxing collection of honey and sale of wild jackfruits. And that, considering the reluctance to bring agriculture in the ambit of taxes, seems very remote. So for IRS, where a lot of our colleagues start their careers at places like Mumbai and Delhi, Vijayawada is a small place.
So what is it that makes small places charming? It is the people. The day I was to reach here, my train was scheduled to arrive here at 4:45 in the morning. I called the office the previous day and asked if they could send someone to the railway station as I was new to the place and was arriving at an odd hour. In about an hour’s time, I got a call from the driver. I asked him to be at the station by 4:30 in the morning. He said he would be at 4 am. And he was. It was just the beginning. It is ten days since I came here. And I have never come across anyone who thinks twice when you ask him for something. People here respect you to the point of embarrassment.
One reason could be because officers of my rank are few. There are five officers of the rank Assistant / Deputy Commissioners in Vijayawada. The corresponding number in Hyderabad is more than 50. Other could be historical. During my interaction with a senior officer, who hails from this place, I was told the behavior of people towards Government officials is result of the colonial history. Since the region, unlike Hyderabad, was under the colonial rule, the people are well-acquainted with administrative machinery and are more conscious of the power, potential and the reach of Government. This is something which would be put to test soon. How?
My jurisdiction consists mainly of old parts of the city and adjoining rural areas. The economic growth is not very vibrant in these parts. But that doesn’t grant me immunity from upward revision of revenue targets. My predecessor felt that collections have reached optimum levels and are likely to plateau. The only way to increase collection was to widen the tax net. So I have sent about 400 letters to assesses, who were not filing returns to do so. Non-filing of Income-tax returns when you have a taxable income or when you belong to particular class of assesses like companies could lead to imprisonment. The response to these letters would reveal whether the people here are truly respectful of the authority of Government.
Personally what I like the most about small cities is their contribution on the professional front. You get to deal with all types of cases. In big cities, there is an element of specialization in the jurisdiction. Some charges deal with only salary cases, some with business cases and others with companies. However, in small cities, the jurisdiction is territorial. So one gets to deal all kinds of cases and consequently the experience is more varied. Secondly, the workload is relatively more manageable. Not that every colleague of mine in the metros are getting buried under the piles of files, but a few of them do have quite a Herculean task ahead of them. And for me, after two years of slumber at Mussoorie and Nagpur, keeping myself awake when sun is still high is in itself a Herculean task.
“I have some more cases for you”, my surrogate trainer (ST) announced.
It was around 10 days since my “On Job Training” (OJT) began. He handed me a case bang on the day I reported to him. It was a case where the investigations were in progress. He asked me to study it, find Grey areas and prepare a questionnaire. That he served my questionnaire on the assessee[1] without much change was a tacit acknowledgment that I did a decent job. Or atleast I concluded it that way. Self-confidence building measures, you see. The assessee asked for time to file his reply. It was at this juncture that my ST announced that he had more cases in store for me.
I was happy because going through these files was certainly more interesting than observing office procedures like maintenance of records, handling mails etc. And, occasionally, you also get some page 3 pleasures when you see where and how the rich and famous have their wealth made or stored. I looked forward to the next case as it was an opportunity to prove that my previous efforts were not a fluke and I did have some soft mass beneath my hard skull. Not that my ST doubted; He was fine trainer who seemed to believe positively in the potentials of young officers. It is just that I did not want to prove him wrong like I did to most of my teachers who taught me previously.
Files of three cases were brought and placed on the large table of my ST. I picked up the case with the bulkiest of files. It is said that the best way to overcome the fear of something is to face it. And that was precisely what I was trying to do. Get over the fear of files, more importantly, the real fat ones. I took them back to my desk. STs are usually range heads, whose functions are mainly supervisory. He would have around five assessing officers under him who would scrutinse the Income Tax returns filed in the range. The range head does not do the scrutinies. However, in recent years, the range heads have been asked to scrutinise the top 20 cases in their jurisdiction. The case given to me was one such case. I found that my ST had begun investigations and had called for a lot of information from the assessee. He virtually called for proofs of every source of income and every source of expenditure. That explained why those files were so bulky. The assessee too seemed to be a meticulous person. He filed every detail that was called for; That too in a very neat and organised manner. I was impressed.
For the next three days, I perused through the documents. As with most cases, it took sometime to grasp the orientation of the case. True, I had a briefing about the activities of the assessee. But trying to deduce the line of investigation from the documents produced does take some time. Especially, when it is just the second case you are seeing. After three days of perusal, I was utterly frustrated. I could just come up with one issue. In the last case, where the file had just around one-third of documents in the present case, I came up with seven issues. When I brought to my ST's notice, the sole anomaly detected by me, he casually replied that it was already brought to the notice of the assessee, who conceded it. Wow. So that is a clean zero. The following day such was my desperation that I even began to verify the conveyance bills. I called up my friend who lived in Bangalore for four years and asked him the distance between various places in Bangalore and the corresponding taxi charges. This yielded just what my previous efforts in this case yielded. Nothing.
Finally, I gave up. The following morning, when my ST asked the progress in the case, I confessed that I could not detect anything. He seemed to be least perturbed. He made me understand something, remembering which, would hold me good stead in days to come. It not necessary that I always succeed. There would be honest taxpayers and in such cases any amount of scrutiny would not yield anything. Wisdom lies in accepting this fact. There is no point in passing orders making additions to taxable income merely because I have spent days investigating a case and I cannot accept the result to be nothing. It is not a question whether such orders would stand the test of the appellate authorities. They are sure to be knocked down. But in the process, it creates undue hardship to the taxpayer and avoidable workload to my colleagues. Instead, accept the income offered to tax and close the case.
After that day, I went through many files. And not a single one was flawless. But yes, that one file taught me that honest taxpayers are not a realm of fiction. They exist. I may not come across them very frequently. But I should accept one when I come across.
[1] The process of scrutiny of Income Tax returns is termed as assessment. The person being assessed in a case is the assessee.
“Can we imagine an umpire or a referee who knows nothing about the sport. A President is not called upon to write poems, stories, novels nor talk about scientific research. He should take decisions on issues affecting political, economic and social life of the country,” Mr. Bardhan said giving a talk on Presidential elections at a meeting organised by the State council of CPI here on Sunday.
Sir, shouldn’t we then have some minimum educational qualification for legislators?
He said the country had entered a crucial era of coalition politics, breaking the monopoly of power by Congress. In this context, the highest office required a person who had knowledge about the relationship between parties that made up the coalitions. “Tell us, what is wrong in our thought”, he asked.
Nothing sir. We are just wondering if such knowledge is possible. Will some present/erstwhile members of any coalition Government shed light on their ‘relationship’ with other constituents?
He said the Left was opposed to second term for A.P.J. Abdul Kalam because it had not supported him even at the first instance.
How consistent!
Mr. Speaker, Sir
It is a pain to present the Budget for the year 2007-08. I hate the PM for making me stand for three hours and I hate Health Minister for refusing to give me a false certificate for acute arthritis. You will rot in hell.
The budget speech has been deliberately made long so that all those who are listening can go to sleep and have a dream budget, like they had under a sleeping PM. Before I begin to start my budget speech, I would like to share a few pearls of wisdom which will help my allies and the Opposition to receive my proposals in the right perspective. The great modern actor-philosopher of Tamil Nadu had once enlightened us that Adhighama Aasappadra Left um Adhighama Kovappedra Right um Nalla Vaazhntha Charithrame Kedayadhu. (A Left which is over demanding and a Right which is extra fiery will die of worms in their stomach.) So please don’t expect much.
I will not present the overview of the economy because I have already mailed you the copy of Economic Survey 2007-08. Please read it when you find time. If you have doubts, please ask Alex. Even I refer his blog when in doubt.
Our Government has always been conscious of the National Common Minimum Programme. Under the able stewardship of the Chairperson of UPA, we have discovered 23,584 welfare schemes with names containing the words, National, Bharateeya, Pradhan Mantri, Rashtriya, Savarakar, Shayama Prasad Mukherjee etc. They are going to be suitably replaced with the words Rajiv and Indira in the ratio of 10:1.
The farmer has always been the man closest to our heart. Since we have failed to contain the farmer suicides, I have decided to do my bit in ensuring their post-suicide life is made more bearable. In this direction, I introduce Saral forms for claiming compensation for suicides. These would be available in local languages and will have just 29 columns to fill, which is eight lesser than the one used for Income Tax.
First, the direct taxes. It has become a common feature for every sector of industry to vie for some kind of tax benefits. I have received representation from so many quarters in the last few weeks that I have become a confused man. To ensure that I do not confuse you further with multiple concessions, I have devised to introduce one-by-six rule for the corporates. Those satisfying any one of the criterion, are eligible for a flat 25% refund of their Corporation Tax. The criteria are as follows:
2) Firms who aid firms mentioned in (1) by allowing their employees to consume alcohol and tobacco.
3) Firms whose share price is more than Rs 1000 and less than 15% is held by public.
4) Firms which have personal jets.
5) Firms which sponsor polo matches and speculate in derby.
6) Firms whose CEOs attend the meet at Davos.
As my budget will have something for everyone, I have something even for the men. Since dowry has only been going upwards ever since IT boom has occurred, it would be foolish for any administration to ignore such a potential source of revenue. From next year, grooms who take large dowry will get commensurate depreciation against the wealth with every passing year of marriage. Further, if they survive the seven year itch, they will have an option to convert the erstwhile assets into a liability. (This has been my personal experience) This facility would be available provided they submit TDS certificates from their fathers-in-laws at the time of registration of marriage.
In its two years of operation, the Banking Cash Transaction Tax has proved to be an amazing success in curbing the growth of black money. Our research tells me that this technique can also be used to contain the growing inflation. Hence, I propose to impose a small marginal tax of 5% every time you take money out your purse to make a purchase. That is you pay just five paise for a rupee you spend. I have already asked RBI to start minting five paise coins. For women, the definition of “purse” would also include handbag, clutch, tote or any place where they keep their husbands' money.
Under indirect taxes, as boost to the vibrant film industry, I propose a cut in the customs duties so that they can import better heroines from
I regret to inform that the 8% excise duty on packaged software imposed last year has not yielded the expected results. In fact, the whole revenue realized from this category happens to be solely from Government of India. Hence, I propose to modify the proposal to 8% excise duty on pirated software.
As with every year, I plan to bring new promising services like fashion shows, sleazy MMS, illegal occupation of land and extra-legal settlement of land disputes under the service tax net.
In tune with our commitment to financial and auditing reforms, I plan to introduce a radically new budgeting technique – Zero Based Budgeting 2.0. As against the conventional incremental allocation of funds, we plan to add zeros at the end of the previous figures to ensure exponential increase in social spending. However, to ensure that it does not result in runaway inflation which would antagonize our allies from the left, we have devised a formula to suitably move the decimal point towards the left for every added zero.
I am pleased to announce that the outcome budget introduced by me last year has produced outstanding result in the Ministry of Health and Family Welfare. The revised target for overtaking
All progressive Governments are keen on ensuring that the citizens are delivered Good Governance. In this regard, crores of rupees are being allocated, which usually find their way into rehabilitating retired bureaucrats, sponsoring foreign holidays (with spouses) under the cover of study tours and filling the pockets of failed academicians who pose as “consultants”. I have, therefore, decided scrap all such programmes and have come up with a cost-effective ingenious alternative. Names of all Governments will henceforth be prefixed with “Good”. The Government of India will be now known as Good Government of India. Similarly we will have Good Government of Tamil Nadu, Good Government of Andhra Pradesh and so on. The scheme would be first applied to the states ruled by constituents of UPA and it would be extended to other states when we come to power there.
Mr. Speaker, Sir, I have finally ran out of patience, perseverance and paper. If you kindly wake up the honorable members, we can adjourn the house and chill out in the canteen.
Sir, with these words, I commend the Budget to the House.
Look at this piece that was published two days ago.
"The report that six persons died in clashes in Nandigram, West Bengal, following rumours of land acquisition for a Special Economic Zone, is disturbing."
“Rumors”? What rumors? When you turn two pages you find this article where, Mr. Bhattacharjee admitted that the Haldia Development Authority did issue a notice to acquire land and the said authority is headed by a CPI(M) MP. Why publish letters that are factually incorrect?
Incidentally, all the letters are from people who are more that 2000 kms from
As if that was not enough, yesterday’s edition carries another letter toeing the line of The Hindu and coming from a non-West
“The death of six persons in clashes instigated by some organisations in Nandigram is unfortunate. The fact that these organisations played up rumours of land acquisition saying the West Bengal Government had issued eviction notices, when the reality is that it has not even completed the identification of lands, shows their vested interest.”
The other letter in the column too supports the Marxists. Readers often look towards the letters to learn the dissenting or the alternative points of view. In the first place, the reporting on the Singur issue has been very one-sided. Ms. Medha Patkar and Ms. Arundhati Roy, who usually get lavish space, are now given single-column insignificant coverage. By publishing letters that just mimic the articles, The Hindu is forcing regular readers like me to look for alternative sources of news.
The fine line between your beliefs and the truth is always sacrosanct. In this editorial, where they term Mamata Banerjee’s fast as “high-wire theatrics” and “meaningless”, has breached that line. The editorial, which also commends Mr. Bhattacharjee’s handling of the issue, give us an FAQ on Singur.
“What are the key facts about Singur? The State Government went about acquiring the land sought by Tata Motors not by dispossessing the people on the highly fragmented land, but by seeking their consent through offering compensation that was significantly higher than the market price.”
The moot issue is not the price but the consent of the landowners and rehabilitation and that has been consciously eclipsed.
The biggest lie that Chief Minister Bhattacharjee has been repeatedly telling is that the lands have been acquired with the consent of the landowners. But the “Final Report on Singur” which available on the website of West Bengal Industrial Development Corporation reveals a different story.
“Consent under section 11(2) is a means of involvement of the citizen in determination of award. However, non-submission of consent in writing in terms of Section 11(2) does not prevent the Collector from declaring the award and acquiring the land. For those landowners who do not submit consent in writing under Section 11 (2), the Collector shall proceed under Section 11(1) and declare the award and such awardees will not receive the additional 10%.”
Hence, irrespective of the landowner’s consent, the lands have been acquired by the West Bengal Government. The consents that were obtained before the calculation of award are called “Pre-Award Consents”, which is quite logical. The “consents” of those who have not given their consent are called “Post-Award Consents”. It is by using such oxymoronic phrases, Chief Minister Bhattacharjee is shouting from the rooftop that he has got the consent of the landowners.
The Pre-Award Consents get 10% additional money for kowtowing the Communists. When people have finally realized that irrespective of their consent, they are losing their land, they decided that they would rather give their consent to gain the additional 10%. This is quite natural and has obviously happened.
“But even after Declaration of the Award, many persons came forward with the appeal that due to various reasons and constraints, they could not submit the consent in writing for compensation before the date of Declaration of Award. They submitted applications requesting that they may also be paid the additional 10%.”
Predictably, the report is silent on proportion of Pre-Award and Post-Award consents. Incidentally, the third page of the report mentions Important Provisions of the Land Acquisition Act 1894:
The first one under that is:
“Section 4: By publication of notification in the official gazette, two dailies (including one in regional language) and by publication of public notice of the substance of such notification in the locality, the Collector notifies the intention of the Government to take specified lands for any public purpose.”
When did setting up of private industries become a “public purpose”? The self-proclaimed labour-friendly Government has not given any guarantee that the displaced would be employed in the proposed factory. The argument of generating employment seems hollow considering the past record of the Tatas at Pimpri, Pune.
“The Tata's Indica project, comparable to Singur was established as an extension to its initial car-truck and other production enterprise, in Pimpri, Pune. Tatas were given 188 acres of land possessed by Pimpri Housing and Area Development Corporation that was supposed to be used for housing of labourers in the industrial belt. ……
….. no one from about only 125 families who lost their land for the project is employed in the factory which is highly mechanised and have altogether only 300 employees. Telco has anyway slashed about 10,000 and more jobs during last 4 years and Tata Steels downsized its workplace by 30,000 during one decade, as per estimate."
The Left which supported the principle of land-for-land rehabilitation in
Much has been made out of the Mr. Bhattacharjee’s repeated offers to Ms. Mamata Banerjee, in a “civil tone”, to discuss the issues and his decision to set up a consultative mechanism within the Left Front has been recommended to be emulated by others. If the intentions of Mr. Bhattacharjee are truly as angelic as it is being projected, then why isn’t he allowing Ms. Medha Patkar to visit Singur? If the Chief Minister’s claims that there is absolute consensus in the land acquisition among the land holders, then why did he confine Ms. Medha Patkar to a youth hostel in Salt Lake? Wasn’t the State Police well-equipped to handle even 1% of the dissenting local population? It was the same CM who gleefully invited the media to show the vandalism caused by the Trinamool legislators in the Assembly.
Mr. Bhattacharjee, is not just re-inventing Marxism in economic terms, but also in political terms. He is adopting the same tricks which his so-called arch rivals, the capitalists use. The Singur media blockade and the extended videography of broken furniture in the West Bengal Assembly are the pointers towards manipulative dissemination of information. Even the majority of Pre-Award consents, happen to be sourced from the members of Gram Panchayat [predominantly manned by their own party workers] and not the Gram Sabha.
Religion, something which the Communist never recognize, too, is being use. At Nandigram, Mr. Bhattacharjee sought to take refuge under Jamait Ulema-i-Hind. It is not surprising as saffron and red have very similar wavelengths.
With so much going on, The Hindu, has been publishing one-sided stories which have become a joke on journalism. A sample.
“West Bengal Chief Minister Buddhadeb Bhattacharjee said here on Tuesday that a notification issued by the Haldia Development Authority….”
He goes on to say that the notification was “used by certain forces to create confusion in the minds of the locals to incite them to violence.” But a few lines down the article he contradicts himself saying “Confusion among the local people is only natural if such a document from a State agency is brought to their notice.” Mr. Bhattacharjee, please clarify if the confusion was incited or natural? I am confused more than the locals. Or is it that you yourself are confused?
And it seems that the unbiased the reporting of “The Hindu” has forgotten to mention in the article that the head of the Haldia Development Authority is a CPI(M) MP, Lakshman Seth. So Mr. Bhattacharjee, what we need is not an All-Party Meet which you want to convene, but please convene your own party meet or atleast a meeting of your legislators and parliamentarians. May be they will clear (y)our confusion.
It is high-time that the Marxists and their unofficial Media Partner realize that the emperor is wearing no cloths.
Crossposted at Desicritics.