Pramod Kumar

Pramod Kumar addressed the fundamental question of how judges should approach tax structures, emphasising the classical legal principle of assessing whether commercial considerations outweigh tax considerations. He highlighted the long-standing position that where tax considerations clearly dominate commercial rationales, the transaction may be disregarded.

He offered a nuanced view on whether judges should be influenced by societal developments and external information. While judges should not fundamentally alter legal interpretation based on public opinion, he noted that they inevitably operate in an information-rich environment that may subtly influence decision-making in unstructured and unpredictable ways.

Drawing from judicial history, he referred to Lord Denning’s view that judges may need to supplement the law where gaps exist, while acknowledging criticisms of such an approach. He suggested that a proactive judicial process—where judges go beyond arguments presented but transparently disclose additional insights to the parties—can contribute to more comprehensive adjudication.

Importantly, he advocated institutional reform in tax adjudication: complex disputes require exhaustive fact-finding at first-instance levels, including expert evidence and longer hearings, before higher courts address pure questions of law. Such reform would improve adjudicatory quality and reduce doctrinal uncertainty in assessing commercially motivated versus tax-driven transactions.