Shorthand Dictation 80 Words per minute “The Select Committee  ” , Test 10 Minutes with 10 Minutes Audio Dictation, Shorthand Outline and Text Matter. Test 02

The Select Committee has done a very good job, studied the matter thoroughly and improved the Bill so that it/ has become more presentable. The Picture that has now emerged is clearer than it was at an earlier stage. However, / I would like to offer my comments on three or four clauses. clause 2 is very important. I would refer / to two items under, that Clause. In Caluse2(a), an inclusive definition of the word ‘divided’ has been given. This / is a definite improvement. Therefore, the matter would be dealt with in

a more judicious, and better way than hitherto. (100) However, this subject is such a difficult one that it is not so easy to make any definition a perfect/ one. From this angle, there is a lacuna even in this definition which is no doubt a very good improvement/ upon the earlier definition. In sub-Clause(e) of this Clause, any payment of any sum by way of advance/ or loan to a shareholder or any payment on behalf of, or for the individual benefit of any such / holder is deemed to be included in the word divided. The language of this sub-Clause is not very appy. (200) Cases have arisen where the Department has assessed a shareholder, who is partner of a firm, and where the / firm acts as a financier to such company. Where, at any time during the course of the previous year in / a current mutual account between the company and the firm credit appears an favour of the company, even / though the account may subsequently turn into a debit against the company, that is, the amount is wiped out by / payment of such credit as the company has in the same account taken loan subsequently, the Income Tax Officer has treated (300) the credit as distribution of dividend to the shareholder who is a partner in the firm. I think in this / case the definition works very excessively and harshly. This cannot be the intention of this sub-Clause. Unless an amount by / way of advance or loan

remains outstanding at the end of the year and particularly on the date the company /distributes dividend, such temporary advances of loan could not be deemed to be the distribution of the dividend to a / shareholder. One has to make this type of financial arrangements when one is in charge of the affairs of a (400) company. Further, if the advance or loan is to a firm an Association of persons of a Hindu Undivided family, / and on

the registers of the firm, the partner or the member in his individual capacity is the shareholder, then / in such a case, an advance or loan made to the firm, the association og persons or the Hindu Undivided / Family cannot be termed as advance to the partner or them member. Further, the language is unhappy in other respects / also. In the case of payment to a shareholder, unless it is an advance or loan, it cannot be treated (500) as a distribution of dividend to him while where the payment is on behalf of or for the individual benefit / of any such shareholder.

Lastly, I come to Clause 271. No person shall be qualified to represent an assessee in case / in his own assessment a penalty has been imposed for concealing the particulars of his income or deliberately furnishing inaccurate / particulars of his income. Does this suggestion apply to legal practitioners and advocates appearing on behalf of an assessee? This / is a very moot point. From this angle, the class of  legal practitioners are agitated. In the case of advocates (600) whose conduct is governed by the Bar Councils Act, will a mater relating to his own assessment debar him from / carrying on his profession? It may be that in a particular case the Income-Tax Officer wrongly holds that the / advocate is guilty of concealing the particulars of his income deliberately furnishing inaccurate particulars of such income and a penalty / is imposed. Immediately such an order is passed, the advocate will be debarred from practicing or representing an assessee. / If otherwise qualified to appear in other cases, why debar him from appearing in cases of the assesses? Further, this order (700) imposing penalty may be taken to be a finding of mis-conduct on the part of the advocate and a question / may then arise whether he would be debarred from carrying on his profession altogether. This suggestion of the Select Committee / needs reconsideration and in my opinion the Clause needs suitable change. The legal profession should be protected and they should / be allowed to represent the assesses even though there might be complaints against their assessment of incomes. With these few suggestions ? I again commend this Bill and would like to congratulate the Select Committee for the hard labour that they have (800) put in and bringing the Bill in a presentable form.