TaxTMI 
TaxTMI 
Public Disclosure of Tax Offenders : Clause 512 of the Income Tax Bill, 2025 Vs. Section 287 of the Income-tax Act, 1961
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....ticulars of assessees when it is deemed necessary or expedient in the public interest. Such powers reflect a delicate balance between transparency, deterrence, and the protection of individual privacy and reputational interests. The evolution of this provision from its 1961 formulation to its proposed 2025 iteration is significant, not only in terms of legislative language but also in the broader context of tax compliance, public policy, and the rights of taxpayers. This commentary provides a comprehensive analysis of Clause 512, its objectives, structure, and implications, followed by a comparative examination with Section 287 of the 1961 Act, highlighting continuities, changes, and their practical and legal ramifications. Objective and P....
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....respect of such assessees, it may publish such names and particulars in such manner as it thinks fit." This sub-clause grants broad discretionary power to the Central Government. The operative criteria are: * Necessity or Expediency in Public Interest: The government must form an opinion that publication is required for the public good. This introduces an element of subjectivity but is a standard check in administrative law to ensure the power is not exercised arbitrarily. * Scope of Publication: The publication may include both the names of assessees and "any other particulars" relating to proceedings or prosecutions. The language is wide enough to cover a variety of information, potentially including the nature of the offence, the qu....
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....so be published under sub-section (1), if, in the opinion of the Central Government, the circumstances of the case justify it." This sub-clause extends the publication power to individuals associated with entities: * Scope: Covers partners (firms), directors and officers (companies), and members (associations), reflecting the reality that tax evasion or non-compliance is often a collective act or the result of decisions by key persons. * Discretionary Power: The government must form an opinion that publication of these associated persons is justified by the circumstances, adding a further layer of discretionary judgment. * Implications: This provision can have significant reputational and professional consequences for individuals, es....
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....of names of partners, directors, etc., if justified by the circumstances. The 2025 Bill incorporates this as a distinct sub-clause rather than an explanation, which is a matter of legislative drafting style. 4. Notable Differences and Continuities * Substantive Continuity: The core powers, safeguards, and scope remain unchanged. The legislative intent and mechanism are preserved. * Drafting Modernization: The 2025 Bill streamlines the language, removes archaic references (such as "cause to be published"), and aligns cross-references with its own structure. * Procedural Clarity: By moving the explanation regarding associated persons into a separate sub-clause, the 2025 Bill arguably enhances clarity and prominence of this provision. ....
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....ces public confidence in the tax system and demonstrates that enforcement is not merely an internal matter. * Enforcement Tool: The provision adds a non-coercive enforcement tool to the government's arsenal. * Risk of Misuse: The broad discretion afforded to the government underscores the need for clear guidelines and judicial review to prevent arbitrary or disproportionate use. Ambiguities and Potential Issues in Interpretation * Subjectivity in "Public Interest": The determination of what constitutes the public interest is left to the government's opinion, creating potential for inconsistent or politically motivated application. * Scope of "Any Other Particulars": The lack of definition for "particulars" could lead to ove....