TaxTMI 
TaxTMI 
Can a jurisdictional officer investigate in to firms cancelled on his own motion and issue SCN under Section 74 by alleging that purchases were made from firms cancelled suo-moto. My question is if Special Investigation wing (SIB) has been formed in the department for such kind of matters, why officer is indulging in such issues. whether it is beyond the powers of AO or not. If, yes please give some legal backing also. Thanks in advance.
Misuse of power
03 Dec 2024 
4 Replies 
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Investigation under Section 74: jurisdictional officers may investigate and issue notices when statutory ingredients are satisfied.
The jurisdictional Proper Officer may investigate and initiate proceedings under Section 74 when the statutory ingredients are satisfied with verifiable evidence. The Special Investigation Wing serves to collate and provide evidence to the Proper Officer but does not remove the Proper Officer's authority; multiple agencies may conduct enquiries converging on the same facts, and such parallel investigation is not per se misuse of power. (AI Summary)
The jurisdictional Proper Officer may investigate and initiate proceedings under Section 74 when the statutory ingredients are satisfied with verifiable evidence. The Special Investigation Wing serves to collate and provide evidence to the Proper Officer but does not remove the Proper Officer's authority; multiple agencies may conduct enquiries converging on the same facts, and such parallel investigation is not per se misuse of power. (AI Summary)