The Name & Shame tactic - are you a game?
IT is reported by the Press Trust of India that the Income Tax department has decided to name and shame "chronic" tax defaulters by publicizing their names and addresses on its website.
The department, it is presumed, would upload the names and possible addresses of such tax evaders on the lines of the 'Wanted' list uploaded by enforcement agencies like police and investigative agencies like the CBI and the NIA on their portals.
The Income Tax department may also consider measures to publish the names of such defaulters in other forms of mass communication media like newspapers but that would be done on a later stage, an official said.
Incidentally, the provisions for all this hoopla exists in the form of section 287 of the Income Tax Act, 1961 titled as ‘Publication of information respecting assessees in certain cases'.
And the CBEC has a similar arsenal thanks to the Taxation Laws (Amendment) Act, 2006 which inserted section 37E in the CEA, 1944 and section 154B in the Customs Act, 1962.
Elaborate procedure has also been made known by the Board vide Circular 849/07/2007 dated 19/04/2007 but unfortunately, none has the patience to follow it for they like to jump the gun as reported by us in DDT- 2081 involving the DG, CEI.
The Circular dated 19/04/2007 says -
“3. It is, however, clarified that these provisions are stringent in nature and may affect the reputation of a person. Therefore, these should be used sparingly, with due care and caution. At the same time, it has also to be ensured that in deserving cases, they are, infact used, and that there is no arbitrary selection in their implementation.”