Super Lawyer

Tag: Taxation

  • Sunil Agarwal, Senior Tax Partner, AZB, on tax litigation, and work as Income Tax Commissioner

    Sunil Agarwal, Senior Tax Partner, AZB, on tax litigation, and work as Income Tax Commissioner

    Mr. Sunil Agrawal graduated in law from the University of Ahmedabad. Prior to that, he had also successfully completed his Bachelor’s in Science and MBBS. He has worked with the Indian Revenue Services for over twenty years as Additional Commissioner of Income Tax. He is currently Senior Taxation Partner at AZB & Partners.

    In this interview we speak to him about:

    • Working with the Government of India
    • Work at the Income Tax Simplification Committee
    • Retiring as an Additional Commissioner of Income Tax and joining AZB as a partner

    When and why did you decide to study law?

    It was in 1995–while working as an Investigating Officer in the Indian Revenue Service, my boss all of a sudden directed me to argue the case which I had myself decided as an investigating officer before the Income Tax Appellate Tribunal (ITAT) for and on behalf of the Income Tax Department. I had no prior experience of arguing a case. The hearing of this case continued for about a week. Opposite to me was a senior advocate Mr. Dinesh Vyas, reputed to be the best tax counsel in India at that point of time. I succeeded. After the judgment, he encouraged me to take up the role of an arguing counsel, rather than continuing in the government service. At that point of time, I decided to complete my law degree.

     

    What are the competitive exams you have taken?

    I have taken the following competitive exams:

    Combined Pre-Medical Test (CPMT) in Uttar Pradesh – scored 5th rank in Uttar Pradesh and 2nd in Agra (my home-town). Although I ranked 4th in my university, after completing my MBBS, I did not pursue medicine as a career, I thought that I could better serve the nation while being in public services.

    Bank Probationary Officers Exam – I worked in Punjab National Bank as a Branch Manager (while still a probationer). It was a very satisfying experience of having the good fortune of understanding the working of and managing a branch of a leading public sector bank. It was even more satisfying because this was where I substantially improved loan recovery rates for priority sector loans, in less than one year.

    UPSC Exam (civil services) – UPSC civil services exam is known to be the toughest competitive examination in the world (so recognized by the Guinness Book of Records).

    The scope of studies is extremely wide – it goes without saying that one has to study in a meaningful and sincere manner for at least thirteen to fourteen hours a day at least for a year, if not more, to stand a chance of success in the exam.
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    Has your study of medicine and your experience as a banker helped you as a lawyer?

    Emphatically yes. Any science-related subject, medicine being no exception, forces a student to be analytical and logical. These qualities, if inculcated can help an individual in any vocation or profession he or she might undertake. In fact, I have used this knowledge in my public service career and in professional career, wherever I found it to be necessary. This knowledge has been very helpful.

     

    In what capacities have you worked with the government?

    I have worked in the following areas of Income Tax Department:

    • Investigation
    • Corporate Assessments
    • International Taxation
    • Arguing counsel before the Income Tax Appellate Tribunal (ITAT) and
    • Authority of Advanced Rulings (AAR).

     

    How has this experience contributed to your present stint in a law firm?

    Working with the Income Tax Department has provided me the width and depth on the subject which I cherish. It is very difficult to acquire comparable exposure while working in the private sector alone.

     

    How was your experience working with the Income Tax Simplification Committee?

    It was an extremely rewarding experience. I was one of the members of this Select Committee. The mandate to this committee was to simplify the Income Tax Act, 1961, rather than to modify it.

    When I was a Joint Commissioner of Income Tax in charge of corporate assessments, I had found some lacunae in the Law which were being exploited by the companies, at the time making assessments of large corporate groups. With the objective of plugging these loopholes, I had proposed amendments to the provisions of the Income Tax Act and given the draft of the proposed amendments with case studies to demonstrate how the loopholes were being exploited. It has been fortunate that such amendment proposals were approved by Ministry of Finance/ Ministry of Law, Govt. of India. I am happy to share that the proposed amendments became a part of Income Tax Act, 1961 which are still in force.

    The suggested amendments to certain provisions of the Income Tax Act which were prone to blatant misuse and perhaps my prior experience in writing articles in professional tax journals, such as Income Tax Reports (ITR), Taxmann, experience of having argued against almost all leading tax advocates, etc. probably contributed towards my appointment.

     

    How was the experience of working with an industry body such as CII?

    Working with an industry body on tax issues of common interest is a very rewarding experience, since we were trying to arrive at workable solutions to the problems of several relevant stakeholders.

     

    Can you share any memorable or interesting experiences in your stint as a senior government counsel at ITAT?

    On a lighter vein, I was probably the first government counsel arguing in the ITAT who used a laptop to access and update a self maintained database of cases and precedents.

    At that time it was perceived as a threat by some of the most reputed opposing counsels! I had prepared on my own a section-wise database using major authorities from Supreme Court and High Courts and ITAT which I used to refer while citing support for a proposition I was arguing. This was done out of necessity and innovation. As government counsel, I did not have the necessary infrastructure to provide four copies of every judgment which was cited before the bench.

     

    Which part of your experience with the government has turned out to be most relevant in your present stint as a law firm partner?

    Looking down the memory lane, it would not be possible to pinpoint any particular aspect of my experience with the government which can be singled out as most relevant. In fact, it is the overall cumulative experience of having served the government in various capacities, whether as an investigating officer, assessing officer or a departmental representative before the ITAT or AAR which has given me the exposure that one cannot gain otherwise.

     

    Can you explain how life as a civil servant or as a government counsel compares with life at a law firm?

    If somebody is sincere, diligent, competent and honest to the job on hand I do not see any difference between my role, whether in government or as a law firm partner today.

     

    Can you tell us about your time at AZB?

    I am fortunate that I continue to handle variety of matters which I was used to handling in the government even after switching over to the law firm.

    Working as a law firm partner, I have had more opportunities to acquire experience on the other side of the table, which I cherish.

     

    According to you role of a senior counsel and a law firm partner in a complex litigation?

    A law firm partner typically has the advantage of knowing the facts of his client’s case extremely well. On top of it, if he or she has additional litigation experience, the quality of the briefing to the senior counsel goes several notches up. This, in a sense, acts as a catalyst for the senior counsel so that the senior counsel is able to prepare himself better. The result is that the senior counsel does better in the court and accordingly the prospects of the client obtaining a better outcome in the litigation significantly improve.

     

    Why did you decide to migrate to a law firm after government service?

    Government of India recruits the best brains in the country through the world’s toughest competitive examination, but it is an irony of fate that the government is not able to retain some of the talent it has already recruited. I think the reasons are too well-known to be spelt out in detail here. I was no exception to this irony.

     

    Is joining civil services a promising career option?

    I would say here we are dealing with the issue of identity crisis. It is better if the youth is able to identify at quite an early stage of career what are their natural inclinations and propensities. Working through those natural gifts is the best way of realizing or unlocking one’s potential. So long as job or career switchover is in furtherance of this objective, perhaps no question should arise on the motive behind the switchover. I would not like to comment on the situation wherein the job switchover is inconsistent with this philosophy.

     

  • Anumita Sarkar on litigation in income tax and being an associate at Lexplosion

    Anumita Sarkar on litigation in income tax and being an associate at Lexplosion

     

    Anumita is currently Legal Associate – Tax compliance, Regulatory Research & Risk Management at Lexplosion. Let’s talk to her about being fluent in tax and her career trajectory.

     

    Hello Anumita! First of all, we’d like to thank you for agreeing to talk to us. Most of our subscribers hail from law schools in India and abroad. How will you introduce yourself to them?

    I am a lawyer, expertise in the area of Income Tax Litigation.

     

    You graduated from Miranda House, University of Delhi with B.A. (Hons) in Sociology and then went on to get a post-graduate diploma in Mass Communication from Bhartiya Vidya Bhawan, New Delhi simultaneously managing to completean LL.B. from Campus Law Centre, University of Delhi. That’s like a lot of studying! Tell us about your experiences at each of these places.

    Studying in Miranda House was a dream-come-true. Those 3 years were simply unforgettable, more so because I was a resident of Miranda House Hostel. After completing my grads, I successfully cracked two entrances (M.A. Sociology at JNU and Delhi University Law Faculty). Although, it was a tough call, but my ambition was always to join the league of legal professionals. Hence, CLC, DU.

    I have always been very energetic and firmly believe in multi-tasking. My very good friend in college inspired me to pursue Mass Communication from BVB, New Delhi. She is an Assistant producer now with CNN-IBN. Pursuing law and journalism required lot of studying, but it was worth it! I successfully completed my LL.B. and journalism and felt confident with both the degrees. I was into dual profession (practicing as a lawyer as well as a content/ copy writer with a travel agency). I was never afraid to venture out new career opportunities.

     

    anumita-sarkarOkay, coming to the very clichéd question- Why Law?

    The subject Law always fascinated me extensively. As I grew up, I realized that law is something which intrigued me deeply. The constitutional changes, legal developments in law brought in the society, etc. It was all over the newspaper daily. I was a voracious reader of various types of magazines and editorials in newspaper (The Hindu). I realized that, I am at my best when I’m challenged and nothing could convince me, until it satisfied me with logic and reasons. Law is something where I relish the opportunity of lateral thinking. There’s nothing better than learning from the supreme master, as in the case of Eklavya!

     

    You took up a course on Intellectual Property from World Intellectual Property Organization. How was the experience?

    It was a fairly good experience. The course covers all the general IP concepts. One can study and read the modules at one’s own pace and time.

     

    I’m sure you were a brilliant student – it won’t be out of place to mention that you have numerous publications and internships! How was the practical aspect of law?

    Internship as a law student and an experience as an Advocate are completely different. My main area of practice was Income Tax Law. I practiced for 3 years before various statutory authorities and income tax appellate tribunal in Kolkata. I have handled independently several types of income tax appeal cases and I feel good to share that I have successfully disposed off many cases (reported judgments). My publications are about my experience in tax litigation. My publications are my in-depth legal research in the study of income tax law and practice.

     

    In India, despite all the hue and cry about female equality, there are numerous families that don’t support female education. How supportive has your family been?

    My parents have been extremely encouraging and ambitious with me and my sisters. My elder sister is a Doctorate from J.N.U and an Assistant professor in Miranda House, Delhi University and my younger sister is a fresh law graduate from N.U.J.S., now pursuing her Judicial Clerkship under a Supreme Court Judge. We have been raised with the best of education and I am proud that my parents are encouraging and extremely supportive. They are liberal and forward looking. They feel proud in our every little success.

     

    You’ve worked as a content writer for a holiday tour company, as a practicing lawyer, and are currently working as a legal associate at Lexplosion Solutions Private Limited. How has the whole journey been like? What were the major hurdles that you faced in your journey so far?

    The legal profession is very challenging and full of struggle, especially when one does not have a god father to support. My interest for litigation put me into professional struggle after passing out from law school. But I was confident that I would succeed in anything that I loved to do. At this time my dad, once being the officer in the Revenue Department, supported and encouraged me to specialize in one of the areas of law. It was not a very difficult decision; Tax was in my blood and it was one of my subject interests of study. I joined a Chartered Accountant firm and I started tax litigation in full swing. Here my competition/ colleagues were mostly Chartered Accountants. Hailing from a non-accountancy background, I initially suffered a low confidence and found it extremely difficult in understanding the jugglery of accounts in income tax practice, especially at the times of scrutiny assessments. But with the help of my boss (F.C.A.) and supportive colleagues/ accountants, tax practice gradually turned out to be smooth. I researched more and more and with the help of itatonline.org and taxmann, I always kept myself updated with the latest changes in income tax law/ litigation. The only thing I did continuously for 3 years was tax litigation and I loved it and I was good at it.

    Lexplosion happened by chance. I felt it was the time for me to explore something more challenging and diversified. I grasped the opportunity to work for Lexplosion, the moment I got selected. Lexplosion Solutions Pvt. Ltd. is a statutory compliance management firm providing compliance solutions to various corporate sectors. My areas of work comprises of providing tax/fiscal compliance solutions to the corporate clients.

     

    You don’t only have a lot of degrees and work hard- in addition, you blog and also volunteer for causes like teaching under privileged children, helping needy children, raising funds for a cancer research institute! You truly are an inspiration to many of us. Tell us something about your volunteering experiences.

    I have been volunteering since I was in school. I was very active when it came to support a social cause, hence I volunteered as a fund raiser for Help Care Society and Cancer Center Welfare home and research institute. While pursuing graduation from Miranda House, I was an active member of MH NSS society. I volunteered as a teacher and taught the under-privileged students.

     

    In addition, you have completed a 4 year course in Art from Sarbabharatiya Sangeet, recognized by the West Bengal State Academy of Dance Drama, Music and Fine Art. Do you still pursue your hobbies and interests? How do you manage your time?

    No, I don’t pursue Art anymore. I regret that I couldn’t complete my diploma in Art. Study took away most of the time. Now, my interest is to blog and providing solutions to the readers as and when I receive any query in my mailbox.

     

    Finally, what would you like to say to our law school students and graduates? Your words will surely inspire to be not just a good lawyer, but a good human being as well.

    Best motivation is self-motivation. Always follow your head and never give up the struggle in the profession. You never know what’s knocking at your door.