Creation of posts of DG (Inv) and (Spl Inv). - Income Tax - 1484/CBDT

INSTRUCTION NO. 1484/CBDT Dated: September 16, 1982 Reference is invited to the Ministry of Finance Department of Revenue letter No. A.11013/6I/8I-Ad.VII, dated 16th September, 1981, regarding the creation of posts of Directors General (Inv.) and (spl.Inv.) and to say that the question of assignment of functions to these two directors General and reorganisation of the Directorates had been under consideration of the Board for some time past. After careful consideration, the Board has now taken the following decisions in the matter:- I-General Functions and Reorganisation (i) DG (INv.) shall be incharge of the following Directorates- 1. DI (INV.) 2. DI (INT.) 3. DI (Survey) DG (Spl.Inv.) shall be in-charge of the following Directorates:- 1. DI (IT) 2. DI (Audit) 3. DI (RS PR) 4. DI (P P) 5. DI (Spl.Inv.) However DI (IT) will work directly under M (S T) in matters relating to examinations. (ii) Transfer and postings of Assistant Directors and higher functionaries will continue to be made by the Board to and from the various Directors. Transfers and postings of the officers within the respective Directorates will be made by the DIs with the approval of the DG. (iii) The DIs working under the two DGs will draw up their tour programmes in consultation with the DG. In exceptional circumstances, when the DIs undertakes a tour at very short notice, under the exigencies of developments, they should keep the DG informed of the tour and the development which had necessitated the sudden tour. (iv) The present cadres of non-gazetted staff attached to the various Directorates will continue as at present. For the purpose of maintaining and running the administrative organisations and discharging the administrative and technical functions assigned to the DGs they will create a small Hqrs. set up by drawing upon the existing administrative staff of the respective Directorates. (v)(a) The Director General will initiate the confidential reports of the DIs working in his charge. For this purpose, the area as in which he will comment will be communicated separately. (b) The DG will review the confidential reports of the officers in the Directorate written by the DIs. It will be the responsibility of the DG to obtain the reports from the DIs concerned and take further necessary action including communication of adverse remarks. The headquarters office of the DG will would deal with the representations against adverse remarks and submit the relevant file to the DG through the DI concerned for orders. (c) The DI concerned will forward two copies of the duly completed annual confidential Reports of all the officers working under him to the DG concerned, who after keeping one copy for his record, will pass on the other to the Board. (vi) The Vigilance and disciplinary matters of the gazetted officers will be dealt with in the Head-quarters office under the control of the DG and the relevant file will be put up to the DG for appropriate orders through the concerned DI. (vii) The respective DGs can sanction leave to all Deputy Directors under the administrative control of the DIs specified in (i). (viii) The DIs will retain their status as independent heads of departments. They would deal directly with the board on any areas/items specified by the Board. (ix) For this year, separate expenditure budget of the various Directorates will continue. For 1983-84, and onwards, the two DGs will be budgeting and expenditure controlling authorities in respect of the Directorates named below:- Budgeting and expenditure control to be exercised by DG (Inv.) 1. Directorate of Inspection (Inv.) 2. Directorate of Inspection (Int.) 3. Directorate of Inspection (Survey) 4. Directorate of Inspection (Vigilance). Budgeting and expenditure control to be exercised by DG (Spl.Inv.) 1. Directorate of Inspection (Income-tax and Audit) 2. Directorate of Inspection (RS PR) 3. Directorate of Inspection (Recovery) 4. Directorate of Inspection (Printing Publication) 5. Directorate of Inspection (Spl.Inv.) All financial sanctions shall be issued, from 1983-84 onwards by the DG or the Officers authorised by him under the rules to issue such sanctions. For this purpose of budgeting and controlling expenditure, DI (Systems) will continue to the part of the DOMS as at present. Director (Trg.) will continue to be part of the DOMS as at present Director (Trg.) will continue to have his independent budget. II. Technical Functions of the two DGs. The technical functions of the DG (Inv.) and DG (Spl. Inv.) will be as under:- A- Director General (Inv.) 1. The DG shall carry out periodical inspection of all the units of the various Directorates under his charge at the Headquarters and in the field for evaluating their performance. 2. Reports in all important cases of search and seizures shall be announced to the D.G. immediately after the operation who will guide and supervise the investigations wherever necessary. The DG will also be the coordinating authority for activities after an operations u/s 132 when the operation concerns more than one Commissioner. The DG will also act as a Coordinating Authority between the DI (Intelligence) and DI (Investigation). 3. The DG shall personally supervise and guide investigations and follow up action in respect of search and seizure cases involving estimated tax evasion of over Rs. 25 lakhs. 4. The Director General should supervise the compilation of dossiers by DI (Intelligence) in respect of important cases and groups. He should actively associated himself in getting the requisite information from the field Commissioners in suitable cases. 5. All important cases of tax evasion discovered during the course of survey under Section 133A shall be brought to the notice of the DG and reports regarding follow up action shall be submitted to the DG from time to time. 6. The DG shall keep track of tax evasion petitions alleging substantial tax evasion say Rs 25 lakhs or more. In such cases, the lines of investigation may be laid down by the DI concerned in consultation with the DG. 7. The DG will supervise the drawing up of annual and perspective survey action plans. He should monitor that surveys are actually conducted according to these plans. 8. The DG shall keep the Board informed regarding the various tax evasion techniques adopted by the assessees, and also the areas in which large-scale concealment of income/wealth is suspected. 9. At the end of the year, the DG will obtain an annual report of the performance of each DI under him and send one copy each thereof with his comments to the Chairman the Functional members concerned. 10. The DG shall coordinate the activities and streamline the working of the different Directorates functioning under his control. B- DIRECTOR GENERAL (SPL.INV.) 1. The DG shall carry out periodical inspections of all the units of the various Directorates under his incharge at the Headquarters and in the field for evaluating their performance. 2. The DG., through, DI (Spl. Inv.) will maintain necessary data regarding Monopoly Houses. He should be in a position to supply information to the Board concerning Monopoly Houses. 3. The DG shall oversee the selection of groups and cases for monitoring by the Special Investigation Directorates and thereafter formulate, supervise and guide the investigation in these cases. 4. The DG shall keep the Board informed regarding the various tax evasion techniques adopted by the assessees and also the areas in which large-scale concealment of income/wealth is suspected. 5. DG will be responsible for the drawing up of the annual Inspection programmes by CsI.T/IACs and monitoring the implementation of the programmes. He will keep the Board appraised of the progress of the inspection work during the year. 6. He will keep track of important points arising from inspection reports commented upon by the DI (IT). He will guide the DI (IT) on issuing instructions regarding points to be looked into by the Inspecting Officers. He will ensure that remedial action based on the inspection reports of the IACs are taken by the field officers in time and further that where general instructions need to the issued by the Directorate or the Board such instructions get issued in time. 7. He will be in charge of the follow up action in cases of audit objections which give rise to common points likely to arise in several charges or require active involvement of more than one CIT and have suitable instructions issued to the field. Wherever an amendment of law or procedure is considered necessary, he will get the matter examined in the Board for further appropriate action. 8. He will look into all specific audit paras selected for oral reply and be in a position to assist the Board effectively. 9. He will monitor the research studies entrused to or carried out by DI (RS PR) and guide the research in fruitful areas. 10. He will lay down important areas for research in addition to the areas that may be assigned to the Directorate of RS PR by the Board. 11. He will scrutinise the printing and publication programmes of the DI (P R) and monitor their successful implementation. 12. He will look into the bottlenecks in actual distribution of circulars, instructions, books brochures etc. and keep a check that these publications reach the concerned persons from whom they are intended namely the assessing and collection authorities in the field. 13. At the end of the year, the DG will obtain an annual report of the performance of each DI under him and send one copy thereof with his comments to the Chairman the functional members concerned. 14. The DG shall coordinate the activities and streamline the working of the different Directorates functioning under his control. In respect of matters not specifically referred to in these instructions, the existing practice procedures will continue.