Centralization of search cases and decentralization of non-search cases - Income Tax - F.No.286/92/2001-IT (InvI)

F.No.286/92/2001-IT (InvI) Government of India Ministry of Finance Department of Revenue Centra] Board of Direct Taxes Room No. 269, North block, New Delhi, 21 August, 2001 To, All Chief Commissioners of Income Tax, and All Directors General of Income Tax (Inv.) Sub.: Centralization of search cases and decentralization of non-search cases- 1. It had been mentioned in the Chairman s D.O. letter F.No. A-l1013/3/98-Ad. VII/375 415 dated 8.5.2001 addressed to all the CCsIT/DGsIT and subsequent letter F.No.225/95/2001-1TA-II dated 31.7.2001 that all search cases shall be centralized and all non-search cases shall be sent out of the central charges immediately. 2. Letters have been received from the various DGslT(lnv.) that there are difficulties in immediate implementation of the above decision, like: (i) Many search cases to be centralised shall be getting time barred in near future leaving hardly any time for the central charge officers to do the necessary investigations. (ii) Many DGs(Inv.) do not have the manpower to handle all search cases. (iii) The placement of manpower is in a flux due to restructuring exercise. (iv) The DGIT(Systems) has not supplied the software for transferring cases on account of restructuring. 3. It has, therefore, been decided that the centralisation of search cases in Central Charges shall depend on the workload/manpower available in Central Charges. In any case, search cases presently in non-Central Charges and where the time limit for passing assessment orders under section 158BC/158BD expires on or before 31.10.2001, shall not be transferred to Central Charges. 4. Further, there shall be no general decentralisation of the non-search cases out of central charges. The decentralisation of non-search cases, as also search cases in which assessments have already been completed shall continue to be done according to the already existing guidelines contained in Board s letter F.No. 414/46/99-IT(lnv.l) dated 27.07.1999, which are as under: (i) All cases which are with Central Charges for 5 years or more can be considered for decentralization provided no investigations are pending in such cases. (ii) The cases which are with the Central Charges for the last three to five years, should be reviewed for retention/ decentralization. (iii) All cases which have been in Central Charges for less than three years and are also sensitive in nature should be retained in central charges. (iv) Permanent Account Number should have been allotted before decentralisation. Yours faithfully, (Devinder Gupta) Under Secretary (Inv.I)