Delhi High Court Chief Justice D K Upadhyaya on Thursday criticised the working style at the lowest level of tax assessment—such as that of inspectors and assessing officers—as “archaic”, saying that “the one who generates income is looked upon as a culprit”. Chief Justice Upadhyaya made the remarks at a symposium organised by the Income Tax Appellate Tribunal (ITAT) on the topic of ‘Role, Challenges and Way Forward’ at the Delhi High Court. The event also served as a felicitation programme for Chief Justice of India (CJI) B R Gavai, and Union Law Minister Arjun Ram Meghwal was among the dignitaries present. Both CJI Gavai and Chief Justice Upadhyaya emphasised the need for consistent rulings in the taxation framework to maintain trust in the legal system as well as to help an assessee engage in proper tax planning. “In specialised fields like tax laws, achieving clarity and certainty in interpretation and application of legal provisions is of paramount importance.Taxpayers, practitioners and authorities rely on predictable outcomes to plan their affairs and comply with their obligations. Conflicting rulings not only create confusion but can also undermine trust in the legal system.Contradictory opinions can erode authority and hinder the administration of justice,” CJI Gavai said. Chief Justice Upadhyaya questioned whether understanding taxation law is “more taxing than the tax burden itself”. Batting for a “predictable and simplified system of taxation” as a necessity to achieve India’s target of a $5 trillion economy, Chief Justice Upadhyaya implored for a “simplified legal framework of taxation” and the need “to embrace those who contribute to the economy of the nation”. Noting that the present taxation structure suffers from an inherent dichotomy between the tendency of the revenue department to overcharge and that of the assessee to find ways to evade the tax burden, Chief Justice Upadhyaya said, “Any forum which deals with such contested issues of taxation is essentially tackling the age old thought process, ‘when tax is a burden on the citizens’. It makes the task challenging, and what makes it even more challenging is the statutory structure of tax laws in India.” “We have legislation which is far from simplifying. Every tax practitioner understands the pain of going through the statutory provisions, with one provision running into multiple pages, sub-sections, clauses, provisos, and further supplemented by circulars issued by the board from time to time. At times, one wonders if understanding the law of taxation is more taxing than the tax burden itself.Time has come to cultivate the culture of tax planning rather than unpleasant enforcement,” he added. Both CJI Gavai and Chief Justice Upadhyaya emphasised that tax law is not merely a technical domain but touches individual enterprises and impacts livelihoods, affecting the daily lives of ordinary people.
