| 6/1/2009 |
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| Board of Special Commissioners - Cases |
| Case No. 42/58 |
Decided: 14 February, 1959 |
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The Commissioner not obliged to meet and hold negotiations with taxpayers in the case of all objections - article 55, Income Tax Act, now 35, Income Tax Management Act
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Appellant preliminarily pleaded that on submitting a notice of objection, he had not been given the opportunity to discuss his objection with the Commissioner in terms of law. Sub-article 55(5) of the Act provided that "If no agreement is reached the Commissioner shall determine the tax by order in writing." Appellant insisted that it was impossible for an agreement to be reached if the taxpayer is not afforded the opportunity to clarify his objection.
The Board noted that when submitting his objection a taxpayer was bound to "state precisely the grounds of his objection to the assessment." On receipt of the objection the Commissioner "may require the person giving the notice to furnish such particulars of information as the Commissioner may deem necessary...." The word "may" implied that the Commissioner was not obliged to do so. This notwithstanding, in this particular case, Revenue had asked for and examined taxpayer's books of accounts and discussed them with him. It was possible that at this point of time the Commissioner had already formed an opinion and did not require any further information.
Though it was desirable that every facility be given to the objector to put forward his point of view and, possibly, reach an agreement with the Commissioner - thus avoiding unnecessary litigation and appeals - the law did not lay an obligation on the Commissioner to meet all objectors and hold negotiations with them. In this particular case, moreover, taxpayer had been given ample chance to put up a case with the Department, even before the objection stage.
An appeal was entered before the Court from this decision (see case no. 29).
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