Procedure for identification and processing of cases for prosecution under Direct Tax Laws

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... for initiating prosecution for offences under Direct Tax Laws. With a view to achieve the objective behind enactment of Chapter XXII of the Income-tax Act, 1961 (the Act), and to remove any doubts on the intent to address serious cases effectively, this circular is issued. 2. Prosecution is a criminal proceeding. Therefore, based upon evidence gathered, offence and crime as defined in the relevant provision of the Act, the offence has to be proved beyond reasonable doubt. To ensure that only deserving cases get prosecuted the Central Board of Direct Taxes in exercise of powers under section 119 of the Act lays down the following criteria for launching prosecution in respect of the following categories of offences. i.   Offe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Collegium of two CCIT/DGIT rank officers as mentioned in Para 3. 3.   For the purposes of this Circular, the constitution of the Collegium of two CCIT/DGIT rank officers would mean the following- As per section 279(1) of the Act, the sanctioning authority for offences under Chapter XXII is the Principal Commissioner or Commissioner or Commissioner (Appeals) or the appropriate authority. For proper examination of facts and circumstances of a case, and to ensure that only deserving cases below the threshold limit as prescribed in Annexure get selected for filing of prosecution complaint, such sanctioning authority shall seek the prior administrative approval of a collegium of two CCIT/DGIT rank officers, including the CCIT/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 276A Failure to comply with provisions of section 178(1) and (3) reg. company in liquidation Sanctioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 276AB Failure to comply with provisions of sections 269UC, 269UE and 269UL reg. purchase of properties by Government Sanctioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 276B Failure to pay to credit of Central Government (i) tax deducted at source under Chapter XVII-B, or (ii) tax payable u/s 115-O(2) or second proviso to section 194B -   (....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....anctioning Authority (b) in other case Sanctioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 276CCC Wilful failure to furnish in due time return of total income required to be furnished by notice u/s 158BC(a) Sanctioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 276D Wilful failure to produce accounts and documents under section 142(1) or to comply with a notice under section 142(2A) Sanctioning Authority with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers 277 False statement in verification or delivery of false account or statement etc -   (a) wher....