Centralisation of search cases - Income Tax - F.No.299/14/2013-DIR(Inv.lII)/605

F. No. 299/14/2013-DIR(Inv.lII)/605 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi; dated 11th February, 2013 To, All Chief Commissioners of Income Tax (Central) All Directors General of Income Tax (Inv./I CI) Sub: Centralisation of search cases - Guidelines Ref: CBDT s letter in F.No.286/88/2008-IT(lnv.ll) dated 17.09.2008 . Sir/Madam, 1. It has been observed that there is considerable delay in centralization of cases (both within and outstation) resulting in undue delay in initiation of search assessment proceedings, deferment of payment of taxes and completion of assessments at the fag end of the limitation period, adversely affecting their quality. 2. In this regard, the undersigned is directed to convey the following procedure to be followed for early and proper centralization of search cases: (i) The Investigation Directorate shall initiate the process of centralization immediately after the search and send the proposal along-with list of cases covered u/s 153A to the CCIT(Central)/CIT(Central) within 30 days of the initiation of search. (ii) If any of the cases are proposed to be centralized with an Assessing Officer who is stationed at a place other than the current jurisdictional Assessing Officer, the Investigation Wing shall send draft show-cause notices (SCNs) to be issued by the jurisdictional CsIT for giving opportunity of being heard to the assessee before centralization of such cases. Such draft SCNs shall contain specific reasons for the proposed centralization, General and vague reasons such as the need for coordinated investigation should be avoided. The DGIT/CCIT concerned shall coordinate and ensure that speaking orders are passed by the jurisdictional CsIT after giving due opportunity to assessees. Instances of non-speaking orders u/s 127 may be reported to the CCIT concerned with a copy to the Member (Inv). (iii) It has been observed that a large number of connected cases centralized had no potential for any worthwhile investigation and in most of such cases no. undisclosed income has been assessed. Such cases only increase the burden of central charges leaving lesser time and resources for the main cases. Therefore, while proposing to centralize the connected cases/cases liable u/s 153C etc, the DGIT(lnv), DIT (Inv), CCIT(C) and CIT(C) should carefully apply their mind on the need for centralization of such cases. Centralization of such cases shall be finalized along-with or by the time the appraisal report is sent by the Investigation Directorate. (iv) Where the centralization process gets stuck in litigation, the CCsIT/DsGIT/CsIT concerned shall ensure that the assessments in such cases do not get barred by limitation and/or the assessees do not fritter away the assets in the meantime. Suitable strategy should be adopted in such cases. If necessary, assessment and other required proceedings may be got initiated and completed in the CIT charge having original jurisdiction over the case. (v) The cases wherein the centralization process has been stayed by the courts should be closely monitored by the DGslT/CCslT/CslT(C) concerned and every step should be taken to have such stay orders vacated at the earliest. (vi) The letter of CBDT in F.No. 286/88/2008-IT(Inv.II) dated 17.09.2008 may be treated as modified to the above extent. 3. This issues with the approval of the Member (Inv.), CBDT, New Delhi. Yours faithfully, (S. L. Anuragi) Under Secretary(Inv.)-III, CBDT, New Delhi