Providing Transparency in Adjudication and appreciation of facts, changing the evidentiary values, Professionals" thought should be 5 years ahead.

Just an outlook as to what is happening. Websites and systems of all the Portals are changing. May it be income Tax, GST, or Ministry of Corporate affairs.

 With the changes, was viewing at the seminars hosted by Chartered Accountants, Company secretaries and others in the field.

 Government silent. Just information given that the modalities are changing. The changes happening are talked off. People wanted transparency. For that a transparent system is appearing. The professionals in the field have to be five to ten years ahead of the time, in order to provide the right advice to the client. Each business, big or small has a unique way of its conduct. That secrecy is even been respected by the taxmen. This is to be understood well.

 All information in each portal will now be linked with each other. All portals have different set of information but the conclusions can be drawn. Usage of artificial intelligence. It would be automatic. With the sharing of information, the resultants and cross check will just be automatic.

 Some days ago, in one of my articles, I had mentioned about the artificial intelligence. Demonstrating a few:

 A concept of fast tag came up. People thought with the fast tag on their cars, they will not have to wait unnecessarily at the toll plazas and the toll plazas would be secure as they will not be having money with them. After some trials, now all vehicles, crossing, shall have to have a fast tag. Very nice. Was this just for the above discussed matters? NO. All vehicles so crossing has an owner who has a pan card, and that Vehicle are identified. With the number getting flashed, any body can find the location of that vehicle. Now that is linked with the E Bills so generated. When a Vehicle containing goods passes, the fast tag is capable of reading the E way Bill too. Fast tag linked with GST. The entire movement of goods and the vehicle is tracked. No need of cross examination. This is linked with Income Tax. GST No is linked with PAN. Artificial Intelligence checks the E way bill with turnover. The transaction has to be reported. It is through the bank. Bank is again linked with PAN. When false invoices are made without the movement of goods, then without the e way bill checks, it can be classified as bogus. Any misreporting can lead to this. No discretion. All data is summarized automatically. Just an example which has a huge impact. In this connection, the data given of the company, which has made the transaction is all with the Ministry of Corporate affairs. The place of business, Each place, is identified by GST no. nature of concealment very well visible to the income tax department. One mistake by any segment can be problems under all limbs. The intricate, interconnected web of information, duly analyzed by artificial intelligence, gives the officer less scope of gap as analytics leave no space at all.

 The Ministry of Corporate affairs, in the same way, has revamped its site. Professionals are taking it as an opportunity over filing of forms. Which form will provide what information is essential to be understood. Professionals have to understand what not to file. With all Whys. Here the business of the person has to be understood very well before the advisory to be given. Caution is transparency and usage of information and where can it lead to. To many substitutions and revisions in any forms goes against the person. The data is stored by Registrar of Companies. He does not take coercive action but certainly its data bank, when shared with different agencies, provides a lot of information. Corporate need to understand the same very clearly. Important is, the information given in forms so filed and the returns are accepted Data of the persons. Duly verified and attested. Important evidence which can be used against the person.

 Coming to the Income Tax portal. Audit reports are filed by the Chartered Accountants. It is seen that while filing the Audit report in Form 3 CD there are certain unnecessary disclosures  made. Unknowingly or by matter of precedence. One simple example. The Company has transactions with related companies, in which there are common shareholders or common directors. Generally reported by the Chartered Accountants. But if those transactions are at arm’s length, then it does not all within the ambit. Artificial Intelligence, then starts it work by putting a flag for the conduct of scrutiny. Same tests are reporting of transactions which are covered by decisions. When covered, where is the ambiguity? While processing the return, the artificial intelligence adds them. Then the litigations start. These are a few common examples for selection of cases under scrutiny.

Another example by a common man. He buys Foreign Exchange for a visit abroad , declaring his PAN no. His tickets and stays are sponsored by the company, but his PAN No. used. At this stage, he has to answerable about the sources too. Again a question raised by the department. Another source of information so given is the social media, where pictures are flashed by persons visiting foreign lands, who have shown minimum drawings for sustenance.

 Serious Fraud Detection Centre uses the Artificial Intelligence from the information so provided by the portal, and these information, accumulate through the returns so filed. Each return that is filed is to be viewed with that thought and many a times, irrelevant information can be inferred as fraud, which actually is not. That can be the outcome of unnecessary information so furnished .

 Just a few examples in a very simple manner. Each return and information is now not in the hands of human beings. Processing is done through the artificial intelligence, linked to the objective. Government understands the personnel interest and differences in the professional outlook which lead to diversified data collection which many times become detrimental to the interests of the assessee, leading him towards big litigation. And it also helps in crystallization of facts as all the data is available. It helps the adjudication fast. Right move to bring down the litigations.

 Small or large, all business units are like a human Body. In a human body, each part of the body works in consonance to what it supposed to do. There are reflexes. None of the body parts competes with each other. And cure of each body part is by a doctor who understands that part. While treating a body, a person needs to visit the hospital who can make the body tested by the best person, with a common investigation. An eye doctor cannot put his hand over the heart , although he understands the same. Economic activity such as corporate, Direct and Indirect taxes, Customs, should be looked by the conglomerate of all the professionals knowing and working in consonance to each other so that the business houses do not suffer the pains of litigations much. Secrecy of each business housed is paramount, which should not be paramount in the group of professionals in social media. True professional body has to work like human body, and should learn the actions with the insight of at least five to ten years ahead. For this understanding and studying the policy and notings are very important.. It should always be noted that service to the client should be for his safety and peace. Pressures should be the problem of the advising professionals.

Just a thought .