BJP MP-led Parliamentary panel wants IT Department to be politically neutral amid allegations of motivated raids

Amid allegations that the Income Tax Department is being used by the Narendra Modi government against its rivals, a Parliamentary panel headed by a senior BJP MP has asked the Department to conduct its activities in a way that no one could accuse them of working under political pressure.

The Parliamentary Standing Committee headed by senior BJP MP Bhupender Yadav also warned the Central Board of Direct Taxes (CBDT) against "techno-utopianism”, saying over-dependence on technology could lead to new modes of corruption like digital bribery and blackmail using data, amid the government’s push to ensure minimum human interface to avoid harassment of taxpayers.

Acknowledging that all governments at the Centre face allegations that the IT Department is conducting raids on people considered close to the ruling regimes' opponents, the panel on personnel, public grievances, law and justice said in its report that the bureaucracy succumbing to political pressures would undermine the very fundamentals of democracy.

It is "often heard and alleged" by the Opposition that the IT Department was "politically being misused as a ‘revengeful’ arm of those in power" to target political opponents, especially during the elections, the 'Effectiveness of Vigilance Administration in Certain Revenue and Banking Institutions and Selected CPSEs' report said.

While the panel did not refer to any specific incident, the Opposition in recent times had raised concerns about the raids against Karnataka Congress chief D K Shivakumar and people close to Rajasthan Chief Minister Ashok Gehlot, when he was waging an inner-party struggle against Sachin Pilot.

The issue of IT Department raids was raised in a meeting of the panel on January 10 this year during which an MP said that there was an "impression in the country" that search operations or notices issued by it had a "political slant". Another MP felt that the IT officials are "just pawns in the hands of those in power" and suggested a law that prohibits them from being rewarded with political or bureaucratic offices post-retirement.

"The Committee is of the opinion that CBDT should always conduct its work in a neutral, non-partisan and non-discriminatory manner so that the Department could gain respect in the eyes of the general masses for its political neutrality and no one could accuse them of working under political pressures," the report said.

The working of enforcement agencies "under the pressure of those in power creates a crisis for institutional autonomy and against the very spirit of the concept of political neutrality" of bureaucracy which may endanger the very fundamentals of democracy, the report said.

The panel also had a word of warning to the CBDT on using technology, saying over-dependence on technological tools give rise to new forms of corruption which do not require in-person interaction such as digital bribery, blackmail on the basis of data, unauthorised access to digital information of taxpayers that corrupt tax officials may have.

Modi had on August 13 launched 'Transparent Taxation - Honouring the Honest' platform that aims to make the tax system "seamless, painless and faceless". As per the plan, a faceless appeal will be available across the country from September 25.

Expressing apprehensions that technology may also lead to complexity of official procedures and processes, the panel said officials and tax evaders who understand technology and systems may exploit it to their "evil design".

"Lack of digital literacy or technological illiteracy also brings in middlemen having technological know-how to use the vulnerabilities of the service seekers to extort bribes. The Committee, therefore, feels that the CBDT should not fall prey to techno-utopianism as technology is merely an advanced tool and is not a final solution to eradicate corruption...it is not always true that if human interference is reduced, corruption might go down as it is human beings only who operate these technological tools who on occasions may turn fallible," it added.