Centralization of Search cases - Income Tax - F. No. 286/88/2008-IT (Inv. II)

F. No. 286/88/2008-IT (Inv. II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Room No. 254, North Stock New Delhi, the 17th September, 2008 To, All Chief Commissioners of Income Tax (CCA) All Chief Commissioners of Income Tax (Central) All Director Generate of Income Tax (Inv./lntell.) Sir. Sub.: Centralization of Search cases 1. Instances have come to notice of the Board that Search cases are not being centralized promptly, thereby causing delay In initiation of the search assessment proceedings, deferment of payment of taxes and finally resulting in completion of search assessments at the fag end of the limitation period. 2. In supersession of existing Board s instruction no 8/2002 dated 14th, August, 2002 on above subject, I am directed to inform that the following procedure for early centralization of search cases should be followed: (a) In regions where the central charges exist a copy of the Fax Report of search should he should be endorsed to CCIT and CIT having jurisdiction over the assesses and DGIT(Inv.)/CCIT(C) in whose jurisdiction the cases of the group would be centralized after search. The CCIT/CIT having, jurisdiction should ensure that the assessment records of search cases are kept in personal custody of the Assessing Officer, to avoid any manipulation with the* records. (b) In regions where there are more than one CIT(C), the DGIT (lnv.)/CCIT (C) should identify the CIT(C) in whose charge the cases well be a) centralized and inform the DlT(Inv) concerned as well as the CIT(C) within seven days of initiation of search. (c) In regions where there is no central circle or the group is assessed in more than one CCIT regions or involving more than one ClT charges, then the DGIT (Inv.) should identify the CIT charge in which the group searched will be centralized in consultation with the CCIT in whose jurisdiction the main case of the group are assessed to tax within seven days of initiation of search. (d) The ADIT (lnv.) should send proposal for centralization through the Addl. DIT(Inv.) to the DIT(Inv.) who in turn should send the proposal to the CIT (C) or the CIT as mentioned in (C) above as the case may be within 30 days of initiation of search. The proposal should contain names of the cases their PANs, the designation of the present assessing officers and the present CIT charge. The list should also contain the connected cases proposed to be centralized along with reasons thereof including their relationship with the main persons of the group. The assesses not having PAN should also be included along with their addresses and territorial jurisdiction. Against each of the cases, it should be mentioned whether it is covered u/s 132(1) of 132 A or 133A(1) or it is a connected case copies of the proposal should also be endorsed to the CCIT concerned from whose jurisdiction the cases are to be transferred and the DGIT(lnv.)/CCIT(C) to whose jurisdiction the cases are being transferred (e) On receipt of the proposal from DIT(lnv.), the ClT(C) or the CIT as mentioned in (c) above, should immediately write to the CIT(s) having jurisdiction over the cases with a copy to their respective CCIT requesting for transfer of cases to a particular assessing officer in his jurisdiction and conveying his concurrence for that proposed transfer of cases to his charge. (f) The CIT(s) having jurisdiction should pass the requisite order(s) u/s127(2) of the Income Tax Act, 1961 immediately on receipt of the communication from the CIT (C) or the ClT mentioned in (c) above, in cases where no change of station is involved. In cases where change of station is involved, he should give an opportunity of being heard to the assesses and pass orders thereafter, within 30 days of receipt of the proposal. (g) Where the Chief Commissioners or Commissioners are not in agreement with the proposal of centralization forwarded by DIT(lnv.) or CIT(C) or DGIT(Inv.), the CCIT concerned, should inform the DGIT (Inv.) about the disagreement and the reasons for the same immediately. The DGIT (Inv.) should forward the proposal along with his comments to the Investigation Division of CBDT within seven days of receipt of the dissent note from the CCIT. 3. Normally, the search cases shall be centralized in central charges. However, Director General of Income Tax (Inv.)/ Chief Commissioner of Income Tax (Central) may take a decision not to centralize a search case in Central Charges because of heavy workload in the Central Charge and/or low investigation potential / tax impact. Yours faithfully, (Aarsi Prasad) Under Secretary (Inv. II Ill.)