Tax Law in our country is as old as the constitution itself and the history
             of taxes in this land goes back to the days of British colonial rule. One
             thing, which must be remembered, is that tax law id directly connected with
             government revenues. Higher the taxes, greater the revenues. For this
             reason, taxes are used as a good source of government's income. Revenue
             collection is usually the most important purpose behind the imposition of a
             new tax or increase in the present ones. However revenue collection is not
             the sole objective even though it is certainly the most important one.
             There are other reasons for which taxes are either increased or decreased.
             Tax law is actually one of the very few fiscal measures that government has
             to control the financial markets. Apart from its main objective, which is
             revenue for the government, taxes also help in controlling economic
             activity in the country and are often used by the government to control the
             flow of money in the markets. During the colonial days, when British rulers
             needed money for their war with France, taxes were levied on poor colonies,
             which did not enjoy any representation in the government. This led to the
             famous no taxation without representation' debate.
             After the American Revolution, the country had no deferral taxes for some
             time since the central government did not have the power to levy taxes.
             Each state was autonomous and was seen as a separate sovereign power that
             could levy the taxes according to the needs of their respective
             governments. Since there was no clear constitution for more than a decade
             after the independence, federal tax law was non-existent and only state
             taxes existed. However after the adoption of Constitution in 1789, federal
             government became more powerful as the Constitution recognized its right to
             "â€lay and collect taxes, duties, imposts, and excises, pay the Debts and
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