Streamlining of procedure for identification and processing of case for Prosecution under Direct Tax Laws- matter

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....s noticed that prosecution is being launched in very few cases and that too only in cases of technical offences. Inspite of Action plan targets, many regions have not filed even a single prosecution case in a year. 2. In order to ensure that prosecution provisions are effectively implemented so as to create adequate deterrence against tax evasion, I am directed to inform the following revised  procedure for identification and processing of cases for launching prosecution. This procedure  will regulate the launching of prosecution for offences under Direct Tax laws with effect from 01.05.2008 and this procedure will not apply to a case where the prosecution has already been launched. 3. Identification and processing of potent....

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....): Wilful attempt to evade payment of taxes All cases, where an assessee wilfully evades payment of outstanding tax, interest, penalty  or any other sum amounting to  more than Rs.1 lakh for 180 days or more after its final determination i.e. after giving  effect to appellate orders, if any, shall be processed for filing prosecution complaint. The case for prosecution under this section shall be processed by assessing officer/TRO preferably within 60 days of  expiry of the said period. (v). Offences u/s 276D: Failure to produce accounts and documents The following cases shall be processed for filing prosecution complaint:- (a) Cases, where an assessee wilfully fails to produce any books of accounts a....

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.... return Prosecution shall be launched by A.O. depending on the facts and circumstances of each case . However, if  the abetment is for any offence against which prosecution has been initiated, then the  officer initiating prosecution in the main case, shall preferably initiate prosecution under this section  simultaneously. 3.2 Whereas the cases falling in various categories enumerated in para 3.1 above shall be processed  for launching prosecution, for offences u/s 275A, 275B, 276, 276 (prior to 1.4.76), 276 (w.e.f. 1.4.89),  276A, 276AA, 276AB, 276CC, 276CCC and 277 of the I.T. Act, 1961, each case should  be examined and decision may be taken on the facts of each case. Similarly, for offences  com....