An economy may grow at a fast pace, but that does not guarantee profits to corporates. Take the case of the December ended third quarter of the current financial year, when the Indian economy grew by about 7%, but profits of corporates yet receded. Thus, fixing iron clad tax collection targets to be collected at any cost is not correct and cannot be imposed by the authorities. If such targets are set up for budgetary estimates reasons, then the government must periodically review such targets on the basis of reported corporate results instead of forcing it on tax payers and resorting to the most unfair, unhealthy and coercive tax collection measures. However, the IT Department has a practise setting overambitious tax collection targets and not revising them and are known to succumb to directions of their political masters in Delhi unmindful of the ground realities. . It results in the creation of huge disputed tax demands, which even the Department knows that they will be struck down by the judiciary and they also use other coercive means to collect tax. It is in line with this culture of meeting tax collection targets for the current FY, that a CBDT member has instructed the senior officers to take all possible action to recover tax, amidst a sharp shortfall in tax collections, which have a devastating impact on businesses.
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