Tax Titans - The networking site for professionals

1. In case of 44AE (Business of plying Goods Carriages)., where assessee is owner of less than 10 goods carriages but the T.O. is more than 40 lakhs, whether provisions of S. 44AB is applicable (if minimum income is offered for taxation)

2. If there is no Sales/TO/Work done during the financial year but Assessee has received Advance of Rs. 42 Lac (to be adjusted against supply of goods), is he liable for tax audit.

3. Additional sales found as a result of search u/s 132 of IT Act. Sales recorded in books Rs. 35 Lacs. Additional sales on the basis of seized document amounted to Rs. 6 Lac, whether provisions of S.271B are attracted?

4. If the assessee follows exclusive method for accounting of VAT, Excise Duty etc. whether the element of tax, excluded from turnover recorded in books, forms part of turnover u/s 44AB of Income Tax Act in view of provisions of s.145A? Consider a situation where Sales (excluding VAT) is Rs. 39 Lakhs and VAT @4% is Rs. 1.56 Lakhs, whether tax audit applies.

5. In case where accounting for taxes on sales/purchase is done using exclusive method there is an obvious deviation from provisions of s.145A. The valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head “Profits & Gains of Business or profession” shall, therefore, has to be adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by  the assessee to bring the goods to the place of its location and condition as on the date of its valuation. In such cases whether the effect of deviations should be disclosed in the tax audit report and adjusted in the return of income?

6. A company is carrying on  three different types  of business activities viz. manufacturing, trading and providing services. Separate books of account are maintained, but consolidated P & L and B/S is prepared.  Should separate form 3CD be prepared for each type of business.

7. When Assesses opts for exclusive method of VAT as per Guidance Note or VAT issued by ICAI, the amount of Sales Tax is routed through a separate Input/Output Account and not through Profit and Loss Account. Whether provisions of Sec. 43B are applicable?

8. Is it required to go for acturial valuation before allowing deduction for provision for gratuity. How far is it practical for a small organization. What is the responsibility of auditor if no actuarial valuation is made but provision is done on an estimate basis.

Prepared by

Happiness thinker –B.P. Mundra

HOW TO BEHAVE / REACT ON HAPPENING OF FAILURE OR SUCCESS.

1.           Our failure ness should be taken with so graciously and great sports that it will certainly turned the defeat into personal victory.

2.           Also success should be taken with charming graceful, polite and positive attitudes.

3.          It is because the success/failure never ends. It is a continuous process. Every success/failure will spawn new problems. So we must take both success or failureness so graciously.

4.           There are lot of ways to comes to remain happy but they all comes from one principle and that is understanding of nature, human beings and to come near to the nature. One who is natural and can love to nature and human being without any undue want, shall be certainly really happy.

5.           Real and long term success can comes only with keeping Great hearts and Super souls. By this process successful person becomes precious person.

EFFECT OF THINKING CONCEPT

Prepared by Happiness thinker –B.P. Mundra 1. Our thinking concept has great impact on our life. Graceful happiness and Success comes when you think Positive Meaning of happy life 2. Life is available to all human or non human being as and when they borne to the death BUT how gracefully they enjoy is depend upon their thinking concept, behaviour, integrity, hardworking and reactions towards happening. 3. If a person earns unlimited money or becomes successful does not mean that he is graceful also. 4. Always living gracefully is available only to those who architect, articulate and build by their hard work, honesty, always remain positive, good listener, taking right decision or correct the decision at right time, be social and dedicated towards the goal. 5. By born we get only the chance to enjoy the life. We have to build as artist. What type of image we made is purely depend upon us. 6. "The quality of a persons life is in direct proportion to his commitment to excellence." I believe that God gave us all talent to do whatever we want to do and God expects us to do the best we can, when you try to be best, you can, then success and winning take care of themselves. Confidence comes from knowledge. Success comes from Hardworking. Knowledge and excellence. "One who keeps patience is sure to win in his field”. Those who loves human beings and nature are only to whom god loves. Daily walking, jogging/yoga keeps you fit A heart full of grace and a soul generated by love is really a great man.

Happiness thinker     

B.P. Mundra 9314501680

TRY TO BECOME GRACEFUL & SUCCESSFUL

If we want to become successful as well as want that people should respect us than we need to be pleasant, simple confidence, and cool. There are certain rules. You should understand the rules and then follow it. These rules are as under:-

1.            Be simple and visionary. We tend to see things not as they are but as we are. Becoming quiet and simple inside is a first step to seeing things tru. If I cannot appreciate what I have at the moment, how can I value what the future has in store? If the path is beautiful, ask where it leads. But if the destination is beautiful do not ask how is the path . Just keep walking..... To use foul language means that I am not intelligent enough to find other words. Challenges are like trees seen through a running train....As u approach them, they grow bigger....Once u pass them they become smaller.... You should always oriented to make the every moment happy and then it will increase the chances of the next moment being happy also.   Look to the skies and the stars will guide you. Listen to your heart and you will always know the way. Never depended upon others. See the Duck. A duck look smooth & calm on top of water but underneath there is restless peddling. Similarly in life nothing worthwhile comes without struggle.... Life is simple. It is people who complicate it.

2.                 Do your mental work in the morning, your manual work in the afternoon.  Friends, the brain is usually at low ebb at three o'clock in the afternoon. Plan your workroom for efficiency. No matter how small, how large, or if it be but a bench. Put your character stamp on the plan of the work you do. Go to that work as a King goes to his throne. Centralize your work. Plan it. Work your plan.

3.                TRAIN YOUR VOICE. Your voice is an index of your character. Keep it on the level. When other voices are hot and spuming around you, keep your voice cool, calm and corrected. Never allow your voice to become dull, dubious, uncertain, shrinking, or hollow. Keep confidence in your self. Always remember that a Bird sitting on a tree isn’t afraid of the branch shaking or breaking, because it doesn’t trust the Branch, but trusts its own wings! Believe in YOURSELF.  You should develop the skill of your choice to the excellent level of expertise. People should believe in you not only as a reliable trustee but also as capable in your selected field. Do day night to become expert in your field. Only visionary hard work is the solution to get excellent expertise. Do only best work and believe always that best will happen. My dear, Each moment of life is a picture which we have never seen before and we will never see again. Therefore remember that voice tones that are round, rhythmic, full measured have a serene and reposeful voice. Look at what you speak. Reflect your soul in your voice. Let the manner of your voice be calm, smooth, corrected, still energized with positive forces. Have a cheerful voice, a voice that makes one think of sunshine and smiles. We should understand that all reaction towards any happening reflects inner side maturity and integrity level and the state if mind. If we see the actions or reaction of a person then we can understand what is going on inside. We should understand that this going on inside may be due to immature state of a mind also. If a person is simple and visionary then on any happening he will see the positive possibilities on that happening. It is always remembers that no one is complete in this world. People may do wrong actions towards happenings and if we keep confidence, cool, calm and corrected behaviour then people will have time to correct themselves. It is never important for others that how much you are gaining or losing from a particular situation. Other will see with our behaviour and react accordingly. Our this greatness will not allow to develop the ego problem. In result, we shall get esteem, recognition and place in heart of the people.

4.                HAVE A SYSTEM OF ORDER=: Set your mind in order first. Classify what you do. Keep matters separate. Do the big things first. As you classify, drop the non-essentials. Simplify your work. Keep it straight, after a little it will keep you straight. Don't fall over your work, nor step on it, or sit on it. Jollify your work. Put fun into each day's round of toil. Be original in plans and ideas.

5.                 CULTIVATE YOUR EFFICIENCY=:  To all the above add mental energy. Develop insight, grow new knowledge brain cells. Do not overload your stomach with food, nor your body with clothing Friends in this amazing world two giant dynamos generating fifty thousand horse power, their efficiency is kept in such a perfect balance by a little automatic nickle gate. Friends, your efficiency can be kept in balance by little, invisible and automatic thought neurons. A clear brain is the test of efficiency.

6.            One thing is in our life is certain that all the news we receive are sometime favourable and some times not favourable. When we don’t receive favourble news then we should use the day to pause and reflect as we haven`t heard what we were hoping for. At this moment quiet time by ourself brings a renewal of purpose, and improved confidence. One big element in efficiency is the silence. It is the strongest thing to be silent. Noise is emptiness, weakness, inefficiency. Silence is the law of greatness; noise the breaking of the law. We should understand very well that, after all, life`s always a little of this and that!   

7.            We should pursue an activity that is spiritual in nature as it will bring joy and satisfaction. This activity will make us feel somewhat grounded and centred, so this moment and onwards is a great moment to take advantage of this. We should head out on a journey to a holy site or consider undertaking a pilgrimage today.

8.                   Don’t waste your future for bad happened in past or just. So be happy and always do your best and never worried. Beete Hue Kal Ki Khatir tu Aane wala Kal Mat Khona. When you are in problem or crises then your good past behaviour will help you. Close friends or some one may be helpful at that moment and will keep you in good spirits. you always need to worked hard on your relationships and just need to keep them going in the right way. All your efforts towards engaging in open communication and affection have borne fruit! You should always be a lovable person. After your good work certainly a great day will come to recharge, rejoice and rejuvenate your mind and body and then you shall find that you have your best friends around you. Enjoy then the good times with grace and dignity. Always remain a good human being. You shall then certainly get good rest when you sleep.

Happiness thinker     

B.P. Mundra 9314501680

Dear Friends, 

This write-up is given by Shri B. P. Mundra, a very respected member of this site. I was so inspired by it that I want everyone to benefit from this. 

"That person is wise who knows how to do it. It is a powerful thing to get it successfully. There are certain rules to take rest. You should understand the rules and then follow it develop your power to rest. These rules are as under:-

1. Be simple and visionary. We tend to see things not as they are but as we are. Becoming quiet and simple inside is a first step to seeing things tru. If I cannot appreciate what I have at the moment, how can I value what the future has in store? If the path is beautiful, ask where it leads. But if the destination is beautiful do not ask how is the path . Just keep walking..... To use foul language means that I am not intelligent enough to find other words. Challenges are like trees seen through a running train....As u approach them, they grow bigger....Once u pass them they become smaller.... You should always oriented to make the every moment happy and then it will increase the chances of the next moment being happy also. Look to the skies and the stars will guide you. Listen to your heart and you will always know the way. Never depended upon others. See the Duck. A duck look smooth & calm on top of water but underneath there is restless peddling. Similarly in life nothing worthwhile comes without struggle.... Life is simple. It is people who complicate it.

2. Do your mental work in the morning, your manual work in the afternoon. Friends, the brain is usually at low ebb at three o'clock in the afternoon. Plan your workroom for efficiency. No matter how small, how large, or if it be but a bench. Put your character stamp on the plan of the work you do. Go to that work as a King goes to his throne. Centralize your work. Plan it. Work your plan.

3. TRAIN YOUR VOICE. Your voice is an index of your character. Keep it on the level. When other voices are hot and spuming around you, keep your voice cool, calm and corrected. Never allow your voice to become dull, dubious, uncertain, shrinking, or hollow. Keep confidence in your self. Always remember that a Bird sitting on a tree isn’t afraid of the branch shaking or breaking, because it doesn’t trust the Branch, but trusts its own wings! Believe in YOURSELF. You should develop the skill of your choice to the excellent level of expertise. People should believe in you not only as a reliable trustee but also as capable in your selected field. Do day night to become expert in your field. Only visionary hard work is the solution to get excellent expertise. Do only best work and believe always that best will happen. My dear, Each moment of life is a picture which we have never seen before and we will never see again. Therefore remember that voice tones that are round, rhythmic, full measured have a serene and reposeful voice. Look at what you speak. Reflect your soul in your voice. Let the manner of your voice be calm, smooth, corrected, still energized with positive forces. Have a cheerful voice, a voice that makes one think of sunshine and smiles. We should understand that all reaction towards any happening reflects inner side maturity and integrity level and the state if mind. If we see the actions or reaction of a person then we can understand what is going on inside. We should understand that this going on inside may be due to immature state of a mind also. If a person is simple and visionary then on any happening he will see the positive possibilities on that happening. It is always remembers that no one is complete in this world. People may do wrong actions towards happenings and if we keep confidence, cool, calm and corrected behaviour then people will have time to correct themselves. It is never important for others that how much you are gaining or losing from a particular situation. Other will see with our behaviour and react accordingly. Our this greatness will not allow to develop the ego problem. In result, we shall get esteem, recognition and place in heart of the people.

4. HAVE A SYSTEM OF ORDER=: Set your mind in order first. Classify what you do. Keep matters separate. Do the big things first. As you classify, drop the non-essentials. Simplify your work. Keep it straight, after a little it will keep you straight. Don't fall over your work, nor step on it, or sit on it. Jollify your work. Put fun into each day's round of toil. Be original in plans and ideas.

5. CULTIVATE YOUR EFFICIENCY=: To all the above add mental energy. Develop insight, grow new knowledge brain cells. Do not overload your stomach with food, nor your body with clothing Friends in this amazing world two giant dynamos generating fifty thousand horse power, their efficiency is kept in such a perfect balance by a little automatic nickle gate. Friends, your efficiency can be kept in balance by little, invisible and automatic thought neurons. A clear brain is the test of efficiency.

6. One thing is in our life is certain that all the news we receive are sometime favourable and some times not favourable. When we don’t receive favourble news then we should use the day to pause and reflect as we haven`t heard what we were hoping for. At this moment quiet time by ourself brings a renewal of purpose, and improved confidence. One big element in efficiency is the silence. It is the strongest thing to be silent. Noise is emptiness, weakness, inefficiency. Silence is the law of greatness; noise the breaking of the law. We should understand very well that, after all, life`s always a little of this and that!

7. We should pursue an activity that is spiritual in nature as it will bring joy and satisfaction. This activity will make us feel somewhat grounded and centred, so this moment and onwards is a great moment to take advantage of this. We should head out on a journey to a holy site or consider undertaking a pilgrimage today.

8. Don’t waste your future for bad happened in past or just. So be happy and always do your best and never worried. Beete Hue Kal Ki Khatir tu Aane wala Kal Mat Khona. When you are in problem or crises then your good past behaviour will help you. Close friends or some one may be helpful at that moment and will keep you in good spirits. you always need to worked hard on your relationships and just need to keep them going in the right way. All your efforts towards engaging in open communication and affection have borne fruit! You should always be a lovable person. After your good work certainly a great day will come to recharge, rejoice and rejuvenate your mind and body and then you shall find that you have your best friends around you. Enjoy then the good times with grace and dignity. Always remain a good human being. You shall then certainly get good rest when you sleep."

$80,000 for a Year Off? She’ll Take It!

From NYTIMES: http://www.nytimes.com/2009/04/13/nyregion/13bigcity.html?hp

This year may be a disastrous one for the global economy, but it’s shaping up to be one of the best that Heather Eisenlord has enjoyed in a good long while. Granted, that might not be saying much: For the past five years, Ms. Eisenlord has been an associate at Skadden, Arps, Slate, Meagher & Flom, a notably grueling place for a lawyer to work.

But even by more stringent standards of fun, the coming year looks pretty good. Ms. Eisenlord, 36, who works in Skadden’s banking group, will be buying a plane ticket that will take her around the world for a year, and she’s been stocking her apartment in Brooklyn with Lonely Planet travel guides.

Although she’s not yet sure exactly what she’ll be doing on her trip, she has some ideas. She would like to teach English to monks in Sri Lanka and possibly help bring solar power to remote parts of the Himalayas. She’ll probably hit 10 to 15 destinations around the world, most likely practicing not-for-profit law wherever she can be helpful.

The best part of all: Skadden is paying her about $80,000 to do it.

For a sixth-year associate at a New York law firm, $80,000 isn’t exactly competitive pay. But for someone cruising around the world, doing good wherever she sees fit and, let’s face it, probably hitting a beach or two, the pay is excellent.

Only in a financial world turned upside down would an arrangement like this one make sense. Looking to cut costs like everyone else, but not prepared to lay off associates, Skadden has chosen instead to offer all of its associates — about 1,300 worldwide — the option of accepting a third of their base pay to not show up for work for a year. (So far, the partners have no equivalent arrangement.)

The company is helping associates find pro bono work, and is encouraging them to do so. But the lawyers could also spend the year catching up on every episode of “Top Chef” that they missed during the boom years, or traveling around the world, “all of which is O.K. by us,” said Matthew Mallow, a partner at the firm. Other firms have adopted similar strategies, but Skadden’s program is unusual in that it has no pro bono requirements.

As of Friday, about 125 associates had expressed interest. “I think it’s fair to say that the numbers are in excess of our expectations,” Mr. Mallow said.

Only at a corporate law firm would the managers underestimate employees’ interest in taking a year off from the grind for what most of America would consider a small fortune.

Not everyone could cover monthly living expenses on a third of one’s pay, and naturally some skeptical lawyers grilled the partners about job security. If there are layoffs in a year, they wondered, is it really possible that the lawyers who’d been defending trees in British Columbia wouldn’t be disadvantaged, compared with the lawyers who’d been slaving away on contracts in Midtown?

Not only were the lawyers assured that their time away wouldn’t hurt them; in some ways it would be protective: If there are layoffs while they are away, they will be immune.

So far, the majority of the lawyers are looking for worthwhile legal work, Skadden says, to keep them as competitive as possible; but yes, some will take the year off to spend time with their children or look after a sick relative. Someone’s planning to wrap up his Ph.D., someone else is looking into legal work for a news organization, and another associate will be joining Ms. Eisenlord on her round-the-world adventure.

Ms. Eisenlord says she fully intends to go back to Skadden after her trip, and will be eager to return to the work she loves and the co-workers she admires. It’s possible that after a year teaching monks English, installing solar panels in the Himalayas and working on human rights in developing nations, she will come to the conclusion that there is no more fulfilling life than the one she has spent in corporate law.

But maybe she will have some kind of revelation. If there is any silver lining to this financial catastrophe, it’s that business as usual has come to a grinding halt. Sometimes it takes getting thrown out of the office to notice there is a life outside.

Already, Ms. Eisenlord seems to be making some sort of transition. Has she been getting any work done lately as she anticipates this thrilling new trip?

“No comment,” she said.

Spoken like a lawyer — but a lawyer on the verge.

I read an article in the Times that I want to share with you.

Their bills are astronomical, but what’s a few million here if it saves more money there? These days an expensive lawyer is a necessity — not a luxury — especially if you’re visiting the divorce courts. So who among the top 50 is raking it in — and are they really worth it?

Greedy, grasping, duplicitous, self-serving, silver-tongued, slimy, pompous… and that’s being diplomatic. It has become fashionable to knock lawyers, especially successful ones. Few professional groups are as maligned as solicitors and their more voluble (and grandiose) bedfellows, the barristers.

But, m’lud, are we being entirely fair? Just how much do they really earn – and are they worth it? If you look at the hourly rates charged by the top law firms, it appears that clients might be well advised to keep the phone calls to a minimum. Yet the fact remains that an expensive lawyer may save you more than a few bob in the long run. Remember the relieved look on Paul McCartney’s face after he emerged from his divorce hearing – his solicitor, Fiona Shackleton, having saved him upwards of £100m in his settlement with Heather Mills.

The law is a polarised profession. While reforms on fixed fees have hit thousands of legal-aid practitioners beavering away in backstreet offices, partners in City law firms are trousering record profits. There are almost 150,000 practising lawyers in England and Wales – up from 91,000 a decade ago. Last year, the top 100 City law firms employed 46,000 lawyers, generating £12.25 billion in revenues and £4.2 billion in profit. This year, at least 800 lawyers will earn £1m or more. They remain largely an Oxbridge elite – over 60% of the top players went to either Oxford or Cambridge, and nearly all were privately educated.

The 50 lawyers profiled here are among the most distinguished in their fields. While some partners are on a fixed salary, equity partners are generally remunerated on some form of lock-step system – a firm’s profits are pooled and distributed according to seniority. But increasingly, our firms are adopting the US model known as “eat what you kill” – the more money you bring into a firm, the more of the profit you keep.

Rates of charging vary. For City firms these range from £600 an hour to £1,400 an hour for a partner. Leading barristers have a wider spectrum. Tax silks come out on top. When instructing the best tax silks for a conference that might last up to two hours, requiring an additional four hours’ preparation, fees will start at a minimum of £20,000. According to one instructing solicitor: “They very quickly escalate rewards from there – soon reaching £40,000 or £50,000 for more complex work.” At this level, hourly rates up to £4,000 are routine. So who are the key players – and what do they earn?

You can read the full article here: http://business.timesonline.co.uk/tol/business/law/article4303609.ece

There is a popular commercial by a furniture maker running on television which uses a courtroom as the setting to demonstrate the long-lasting abilities of its plywood. Two young lawyers are arguing a matter about a buffalo which apparently caused damages to the Plaintiff, prompting him to seek damages from the owner of the buffalo. The Respondent’s demand is that the buffalo, being the alleged culprit, must be produced in court as a witness, leading to an uproar in the court and prompting the judge to adjourn the matter. Months turn to years and decades go by and the lawyers and the judge, now sprightly octogenarians, are still at the same stage at which they were at the beginning of the case. The plywood table stands mute spectator to the going-ons in the court room with the voice-over saying tongue-in-cheek “Chalta Rahe, Chalta Rahe” (It goes on and on).

Real-life court room business is, however, unfortunately, not as humourous as in the commercial and the gross delay in the disposal of matters is not a matter to be taken lightly. Matters reached a head a few days ago in the High Court when repeated adjournments sought by the lawyers prompted a sharp rebuke from the Hon’ble Chief Justice.

“This is an unhappy state of affairs” the exasperated Chief Justice Swatanter Kumar is reported to have said, as the day progressed and more requests for adjournment came in, with most of them being sought due to the absence of counsels or lack of preparation by lawyers.

The Times of India reported that finally, towards the end of the day, the CJ announced that he would be willing to hear any case if lawyers from both sides were willing to argue. No one came forward, and the bench comprising the Chief Justice and Justice J P Devdhar had no option but to call it a day. It was also reported that what triggered the Chief’s outburst was that the Court had, for the past several days, been forced to adjourn the court by 3.30 or 4 pm (instead of the 5 pm closing time) because lawyers from either side were not prepared to argue and sought an adjournment.

Other judges had a similar unpleasant experience. The Mumbai Mirror reported that Justice Bilal Nazki, on his first day in the Court upon transfer from Andhra Pradesh, was exasperated by the delaying tactics employed by the lawyers, who keep seeking adjournments with all sorts of excuses. The judge, who was left with no matters to hear by 12.30 pm, came down heavily on the lawyers and made it clear that he would not tolerate requests for repeated adjournments.

The DNA reported that the malaise had also struck the consumer courts and that it took a typical consumer case three to four years to reach resolution. It observed that in August 2002, the Supreme Court took a serious view of the backlog of consumer disputes and the tendency to seek repeated adjournments. Commenting during the Dr JJ Merchant & Ors vs. Shrinath Chaturvedi case, the apex court directed district forums to “evolve a procedure of levying heavy cost where adjournment is sought by a party on one or the other ground”. It also asked consumer forums to follow the time limit and the prescribed procedures more strictly. Of course, none of this has helped matters much.

It also reported the case of Vishnu Manjucha , 60, who filed a suit at the tender age of 22 and today – 38 long years later – is still waiting for a verdict. Praying for an early decision, Vishnu breaks into a toothless smile and says, “I hope this case is decided in my lifetime and not passed on to the next generation.”

The Tribunal does not fare any better in this respect. It is common for more than half of the matters on the cause-list being adjourned on one pretext or the other.

There seems to be an “adjournment culture” in the Country’s judicial system. There appear to be several reasons for this. One reason, at least in the Tribunal, is the ‘expectation’ that a matter which is listed for the first time or thereafter, will be adjourned to enable the filing of a Paper-Book though the notice informing the date of the hearing itself would have been sent several weeks ago. The other reason, again applicable to the Tribunal, is the uncertainty regarding the constitution of the Bench. Human nature being what it is – preparation is put off till the last minute – in the ‘expectation’ that the Bench will not function and if it does, one is left with no option but to seek an adjournment. Yet another reason, perhaps applicable to all judicial forums, is the fact that counsels accept multiple briefs to argue, even if all are listed on the same day. This has resulted in a peculiar catch-22 situation because the counsel feel that they must accept multiple briefs as they might otherwise be left with no work in the event of an adjournment. However, if they do get busy with one matter, all other matters have to be per-force adjourned. The problem is exacerbated by the fact that there are only a handful of well-known counsels who are ‘trusted’ by the litigants to handle large matters. If the chosen counsel is not available on the appointed date, it becomes very difficult for the litigant to find a replacement at short notice. He will also be dissatisfied by the fact that his counsel of choice is not there to represent him.

Some judges do their bit to resolve the crises by challenging the reasons and the need for adjournment. They also make it a point to grant only a short adjournment and threaten the litigant with an ex-parte order if he is not ready to argue the matter on the adjourned date. However, unless there is a carefully thought-out and comprehensive policy of reforms aimed at removing the root cause of the “adjournment culture” such knee-jerk reactions are unlikely to have the desired result.

Copied from the blog at itatonline.org for demonstration purposes

The oft-criticized holiday calendar of the Supreme Court will now have to reckon with the scrutiny of the the Parliamentary Standing Committee for the Ministry of Law and Justice on “Judicial Reforms”.

What has met with the ire of legal reformists are the startling figures of mounting arrears coupled with a spree of unending holidays for the apex court.

At the beginning of 2006 there were nearly 29,000 cases vying for the attention of the apex court. By October 2007, this number has spiralled to 44,819. And many of these are cases which have taken decades to reach the apex court.

In this backdrop, the Court’s calender for 2008 reveals that out of 366 days, there are only 192 working days. The rest of the 174 days (nearly 6 months) are made up of holidays. The Court enjoys 7 weeks of ‘Summer vacation’, two weeks for Christmas & new year, a week for Diwali and various assorted holidays for Id, Moharrum, Raksha Bandhan, Maha Shivratri etc. This is marginally better than 2007 when the number of non-working days (189) outnumbered the number of working days (176).

Of course, in addition to these holidays and vacations, individual judges are entitled to their own quota of leaves, according to the provisions of Supreme Court Judges’ salary and other Condition of Service Act, 1958.

K.K. Venugopal, an eminent senior advocate, puts things in perspective when he points out that even the highest US court, where individual judges do not have to adjudicate more than 150 cases, does not have more than three to four months of holidays in a year.

Prashant Bhushan, another senior advocate was sharply critical of what he called “fun-days” in the Supreme Court. He also criticized the fact that some judges had no qualms in going on foreign jaunts in the middle of hearings of important cases.

All of this may, however, be a thing of the past. The Department Related Parliamentary Standing Committee on “Judicial Reforms” has gone on record that one of the issues on its agenda is the aspect of long holidays in the apex court. The Committee’s Chairman and Rajya Sabha Member E.M.S. Natchiappan was qouted as saying "We will examine the rationality of continuing with the British legacy of long vacations in the judiciary. It has also been brought to the committee’s notice that the backlog of cases in the apex court has begun rising of late. We would like to examine if vacations have a bearing on the rising trend of backlog of cases there”.

The Committee will also train its attention on other vexatious issues like ‘financial autonomy’ for the judiciary and the setting up of a Salaries Review Board to go into the structure of salaries and perquisites for the judges.

Copied from the blog at itatonline.org for demonstration purposes.