Improving quality of the Appraisal Report

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..... ter completion of the search, the processing DDIT (Inv.)/ADIT(lnv.) should prepare a Post Search Action Plan identifying the enquiries that are necessary to finalize the Appraisal Report. This should include all major activities including hot pursuit enquiries, opening of sealed premises/lockers etc., examination/verification of seized records, identification of "Core Documents" recording of statements of key witnesses/persons and the expected time for completion of these enquiries/actions. The Plan should be prepared in consultation with Addl./Joint DIT(Inv.) and should be approved by DIT (Inv.) as early as possible. However, in cases where on account of subsequent developments, certain additional enquiries/verifications not mentioned in t .....

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..... trategy by the assessee to induce a sense of complacency so as to preclude further inquiry into actual amount of concealment. Proper inquiries, therefore, should continue irrespective of disclosure. (iv) Search is a tool for deterrence against Tax Evasion. Hence, the Appraisal Report must indicate the prosecution potential on the issues on the basis of evidence gathered during Search or Post Search enquiry, clearly mentioning the nature of offence and breach of prosecution provisions under the I.T. Act. The processing DDIT(Inv.)/ADIT(lnv.) should initiate file prosecution within a month of sending Appraisal Report in cases u/s 275 A, 275B, 277, 277A of the I.T. Act where filing prosecution for violations of the said provisions does not re .....

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..... orative evidences, nature of offence detected and provisions of prosecution against such offence and enquiry as per Post Search Action Plan has been completed. (x) The Director General of Income Tax (Inv.) on receipt of the Appraisal Report, should examine the issues raised in Appraisal Report, identification of core documents, admission of undisclosed income and evidences gathered corroborating the admission, Post Search Action Plan and its outcome. He may consider for sending his comments within a month of receipt of Appraisal Report indicating the short comings, if any and may direct the DIT (Inv.) in appropriate cases, to conduct further enquiry, if considered necessary. (xi) The DGIT (Inv.) should maintain a register containing the .....

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