Timely completion of investigation in STRs /TEPs and forwarding of investigation reports to AOs by Investigation Wing - Income Tax - F. No. 290/28/2013-DIR-(Inv.IV)/386

F. No. 290/28/2013-DIR-(Inv.IV)/386 Government of lndia Ministry of Finance Department of Revenue Central Board of Direct Taxes Room No.17, Ground Floor, E-2, ARA Centre, Jhandewalan Extn., New Delhi-110 055. Date : 08/05/2018 OFFICE MEMORANDUM Sub : Timely completion of investigation in STRs /TEPs and forwarding of investigation reports to AOs by Investigation Wing- reg Ref : i) Revised SOP for management of Tax Evasion Petitions F. No. 291/2l/2013-Dir(lnv. IV) / 1193 dt. 23.09.2016. ii) Revised SOP for management of Suspicious Transaction Reports F. No. 290/27/2013-Dir(Inv.lV) dt. 22.09.2014. Kindly refer to the above captioned subject, 2. It has come to the notice of CBDT that results of investigations with regard to intelligence /information disseminated through STRs/TEPs are not being shared with the Assessing officers timely and investigations are being completed and investigation reports are being sent to AOs towards the end of time barring period, thereby allowing very little time to the jurisdictional Assessing Officers for taking necessary action. 3. In this regard, the undersigned is directed to draw kind attention to para 5(vi) of Revised SOP for management of STRs dt. 22.09.2014 whereby it is stated that enquiries and final disposal of STRs in Category A/11 cases should be completed within 90 days of receipt by Investigating Officer and in other cases within 180 days , unless the DGIT decides to keep them pending . Further, attention is also drawn to para 9.1 of Revised SOP for management of TEPs, where in respect of Category A TEPs, a preliminary report is required to be sent by the DGIT(lnv.) to the Board within 30 days of assignment of UIN by ITBA and final report within 03 months from the end of the month in which UIN was assigned by ITBA. With respect to Category B C TEPs it is laid down that the final report should be submitted within 06 months from the end of the month in which UIN was assigned by ITBA . Further, para 10.3 of Revised SOP for management of TEPs may also be referred and the same is reproduced here as under: The Investigation Officer shall ensure that the investigation report/part final report in Category A and B TEPs is sent to the Assessing Officer at least 06 months before the date of limitations , if the findings of the investigation necessitate initiation of statutory action by the AO or other Income-Tax authorities. Reasons of delay, if any, would be recorded by the JDIT(lnv.) concerned. In any case, if the investigation report/part final report is not sent before 30 days of limitation date for statutory action, then the PDIT (lnv.) should record reasons for delay. . 4. It may be appreciated that the Assessing Officer is required to apply his independent mind to the recommendations contained in the Investigation Report for initiating necessary statutory action under the Act. Prescribed procedures for the same and approval of higher authorities may be required in certain cases. At times, some further enquiry/ reconciliation may be required to be conducted by the AO and sending the investigation reports towards the end of statutory limitation restricts the scope of such actions by the AO. Having received actionable information nearing the time barring period puts immense pressure on the AOs which may adversely affect following of proper procedure/ application of mind/ recording of reasons for re-opening etc., which in turn ultimately may be detrimental to the interests of revenue. 5. In view of the above, the undersigned is directed to convey that the DGslT(lnv.) may ensure that the above timelines and guidelines of CBDT are strictly adhered to by officers of Investigation Wing while sending investigation reports to the Assessing Officers and all actionable information emanating from any enquiry is sent to Assessing Officers before 06 months of time limit for statutory action. 6. This issues with the approval of Chairman, CBDT. (Pankaj Khanna) DCIT(OSD)(Inv. IV), CBDT Telefax : 011-23547571