Transcription No. 24

                       So, except in very serious cases of fraud, we cannot use this. So, I have amended that provision. And the normal provisions under the Cr.P.C. will apply as far as bail is concerned. Now, the provisions are being amended, were referred to by Shri Rahman Khan, are relating to the mandatory capital limit. Similarly, the whole idea of a company seal has also now started becoming almost a relic as far as global laws are concerned. So, our law is being brought to this level. The third amendment relates to deposits. If there is a prohibition in accepting deposits and if company violates that and still accepts deposits, a provision was enacted but punishment for violation was forgotten to put in. So, that gap has to be filled up by virtue of an amendment. The next provision is with regard to inspection of records of companies. Now, AGM resolutions are meant for public display. But Board resolutions are not. A Board resolution of a company may actually contain confidential things. You have a private company or a public company, its entire corporate strategy may be contained in the Board’s resolution, the manner in which its financial strategy may be contained in that, its intellectual property strategy may be contained in it. It may contain saying that this is going to be the name of my product, this is going to be the patent that I am going to ask for, etc. So, those are not available for public display anywhere. So, this Act obliterated the distinction between a Board resolution and an AGM resolution. Hence, a correction had to be done. There was another lapse that has taken place. There was a provision for setting up of past losses and depreciation before declaring dividend. If you have accumulated losses, first you account for those accumulated losses and only then the shareholders get dividend. Now, this provision was put under the rules without putting it in the Act. So, the gap, as far as drafting is concerned, has to be rectified. Similarly, there is a transferring equity shares for which unclaimed dividend has to be transferred to the Investor Education Fund. Now, the rule is that for seven years if dividend is not claimed then that is to be transferred. Now, there was a drafting error into this that even if it is not claimed for one year. There was a little ambiguous drafting which has to be corrected. Sir, I support the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015. As our leader has said, the Congress Party fully supports this Bill. At the same time, we have to bring up certain deficiencies which are there to be rectified in future amendments. First of all, I would like to bring to the attention of the Government that we are bound by the United Nations General Assembly which is, as early as 31st October, 2003, had made that on the basis of recalling its Resolution No. 61 of 4th December, 2000, it established an ad hoc committee to go into the question of these types of evasion of taxation throughout the world. It happened for three years by having different types of meetings and finally, they came forward with the United Nations Convention against Corruption. I would just quote the beginning of the Preamble. I quote, “Concerned about the seriousness of problems and threats posed by corruption to the stability and security of societies, undermining the institutions and values of democracy, ethical values and justice jeopardising sustainable development and the rule of law”. This is where the Government has it. All the States’ Parties of the Convention have signed it. 140 countries have signed this Convention. On that basis, different levels of discussions were going on and finally, they come out with different topics and chapters, so to say, covering about 71 articles. In different ways States’ Parties have to follow it in their own countries. I find that this particular Bill which is coined as the Black Money Bill (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill is very very fragile and it is only an extension of Section 139 of the Income Tax Act. Section 139 is very clear in stating that the filing of Income Tax Return is compulsory. In various cases, they are saying that finally, Sub-clause (4) provides that any asset including financial interest in any entity located outside India or signing authority in any account located outside India is required to file a return of income in prescribed form compulsorily, whether or not he has the income chargeable to tax. But, if you see the present Act, it defines as to why this particular Act has been brought out in India after many years.(800)

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