Guideline for purposes of centralisation of cases. - Income Tax - 1026/CBDT

INSTRUCTION NO. 1026/CBDT Dated : December 20, 1976 Reference is invited to Instructions No. 557, dated the 15th June, 1973, in which certain guideline has been laid down for purposes of centralisation of cases. 2. Pursuant to the recommendation of the Direct Taxes Enquiry Committee contained in para. 2.112 of its Report, it has been further decided by the Board that the following factors should be taken into account while deciding transfer of cases to Investigation/Central Circles. (a) The likelihood of establishing tax fraud for a successful prosecution. (b) The necessity of covering all direct taxes and different kinds of tax offences within each charge and also all strata of society and geographic areas. (c) The necessity of placing emphasis on cases involving racketeers, profiteers, black-marketers and notorious tax evaders in upper income brackets. (d) The necessity of giving priority to cases where the available evidence indicates repeated or flagrant violations of law. (e) The necessity of giving priority to cases where tax-payers have already been convicted for serious economic offences. (f) The necessity of giving priority to cases where assessees are frittering away or transferring their assets to escape proper liability. (g) The necessity of laying emphasis on cases having vast ramifications and involving deftly organised manoeuvres and malpractices. 3. Normally it should be possible to complete investigation in any case in three or four years. After a period of four years or before that, if the investigation has been completed the case may be transferred out of the Investigation/Central Circle. However, if a case is to be retained for a period exceeding four years, approval of the Board should be obtained. In so far as the present cases are concerned, this review may be carried out in April, 1977.