Intelligence Wing should be concerned with prosecution u/s.277 of the I.T.Act . - Income Tax - 190/CBDT

INSTRUCTION NO 190/CBDT, Dated: July 7, 1970 The question of reducing the work-load of the Intelligence Wings so that they may produce really effective results was recently considered by the Board and the following decisions have been taken: 1. Prosecutions u/s.276, which are of a routine nature should be left to the Commissioners. The Commissioners can assign an ITO for this purpose and he may be given general guidance by the Deputy Director of Inspection (Intelligence) but not with reference to specific cases. Intelligence Wing should be concerned with prosecution u/s.277 of the I.T.Act and corresponding provisions of the other direct Taxes Acts and offences under the Indian Penal Code. 2. Liasion with other Government Departments should be maintained by the ITO(SIB). The Intelligence Wing will however continue to associate itself with the searches by other sister departments wherever such departments require association of the Income-tax Department. In cases where searches have already been carried out by the other departments, the Intelligence Wing will work up the cases where the concealment involved is likely to be Rs. 5 lakhs in cases at Bombay and Calcutta and Rs.2 lakhs in Delhi and Madras. Collation of information from these departments will also be done by the Income-tax Officer (SIB). 3. The work relating to the interview of informants carrying out of searches u/s.132 or survey operations u/s.133A, if considered necessary, and preparation or reports thereafter will continue to be the responsibility of the Intelligence Wings. However, if after interviewing the informer, it is felt by the Intelligence Wing that the case is not big enough for development by the Intelligence Wing, they will forward the case to the Additional Commissioners of Income-tax for necessary action so that the allegations made may be utilised during the course of the assessments. 4. Anonymous petitions should hereafterwards be handled by the ITO(SIB). Additional Commissioners may refer anonymous petition to the Intelligence Wing if they feel that (i) the allegations are specific, (ii) the nature of concealment is likely to exceed Rs.5 lakhs in cases of Bombay and Calcutta and Rs.2 lakhs in cases of Delhi and Madras, and (iii) where the Income-tax Officer in the normal course will not be able to develop the case efficiently. 5. Intelligence Wings should not be asked to look into all reward cases. Their responsibility should be only with respect to those cases where they have been associated at the time of the search. 6. The Intelligence Wings will continue to conduct enquiries of their own and develop cases of tax evasion. 7. In some of the sensitive cases, Minister query cases, and in Parliament question files, the Intelligence Wing will conduct the necessary enquiries wherever desired by the Board. No other work will be passed by the Commissioner or Additional Commissioners to the Intelligence Wing without the prior approval of the Board. The practice in certain charges of asking the wing to prepare reports with respect to the applications of the assessees for settlement or for hearings u/s.132(11) should be discontinued forthwith.