No large scale re-opening of I-T cases, FM assures industry

The government today said it has no vindictive intention in retrospectively amending tax laws and has no plans to re-open a large number of old cases, while assuring India Inc that the I-T Department will not act like a "policeman".

Interacting with industry leaders here, Finance Minister Pranab Mukherjee maintained that there was no trust deficit between the government and industry and stressed that the Centre will make all efforts to push forward economic reforms despite constraints of "limited mandate".

"I can assure the industry that there is no intention of opening plethora of the old cases on this plea or that plea because that is simply not permissible (under the laws)," he said while replying to a question at CII meet here.

On industry apprehensions over amendment to the Income Tax Act, as proposed in the Budget, that many tax cases could be reopened, Mukherjee said "to that my answer is no".

"This amendment has been made not with any vindictive or with asserting any particular point of view. This is absolute requirement of the law.

"...But at the same time, I shall have to protect myself. I am not holding my money. I am custodian of the money given by 120 crore people through taxation," he added.

Responding to concerns expressed by industrialist Rahul Bajaj that arrest provisions in GAAR (General Anti-Avoidance Rule) could be misused, Mukherjee said: "We shall have to be careful and we shall have to take note of it because job of the I-T Department is not that of the policeman."

He further added: "We are concerned with the realisation of taxes, not to sit on the judgement whether it is a crime or not, but that is a different issue."

The Finance Minister also reiterated that there was no trust deficit between the government and industry, and assured them that the UPA will make efforts to reach consensus on important issues despite constraints of coalition politics.