Clarification regarding the applicability of modified guidelines on prosecution dated 07.02.2013. - Income Tax - F. No. 285/15/2014-IT (Inv. V)/60

F. No. 285/15/2014-IT (Inv. V)/60 Government of India Ministry of finance Department of Revenue Central Board of Direct Taxes ARA Centre, Jhandewalan Extn. New Delhi- 110055, Dated. 29.08.2014 To All CCsIT (CCA)/AII DGsIT/All CCsIT (Central) Sub.: Clarification regarding the applicability of modified guidelines on prosecution dated 07.02.2013. Ref: Director (Inv.)- V OSD (Legal), CBDT, New Delhi s letter in F.No. 285/90/2013- IT(Inv.), dated 07.02.2013 Section 276B 276BB of the I.T. Act 1961 contains the provisions regarding offences and prosecution related to TDS TCS default respectively. Instruction F.No. 285/90/2008 IT (Inv.)/05 dated 24.04.2008 contains the guidelines/procedure for identification and processing of potential prosecution cases for various categories of offences. Paragraph 3.1 (I) and (II) of the said Instruction pertains to the offences under sections 276B and 276BB of the Income Tax Act, 1961 (the Act) respectively relating to failure to pay tax deducted at source (TDS) or tax collected at source (TCS), as the case may be, to the credit of Central Government. As per the guidelines, cases, where the amount of tax deducted exceeded Rs. 25,000/- and the same was not deposited within 12 months from the date of deduction, were to be processed for prosecution. 2. These guidelines were revised vide letter F.No. 285/90/2013-IT(Inv.) dated 07.02.2013. As per the amended guidelines, cases, where amount of tax deducted is Rs. 1,00,000/- or more and the same is not deposited by the due date , are to be mandatorily processed for prosecution, while those involving belated remittances of Rs, 25,000/- to Rs. 1,00,000/- have to be processed for prosecution depending upon the facts and circumstances of the case. 3. Doubts have been received from the field formation as to whether the revised guidelines of 07.02.2013 would also cover such offences which were not covered by the previous guidelines, for the purposes of compounding. 4. In this regard, it is seen that offences related to TDS/TCS are defined under sections 276B 276BB of the Act. Prosecution proceedings are instituted when the offences is committed as defined in the said sections. The guidelines referred supra were issued only for the purpose of prioritisation of action in identification and processing of potential prosecution cases. However, the same do not, in any manner, impact the fact of offence under the provisions of sections 276B 276BB. 5. In view of the above, it is clarified that the revised guidelines dated 07.02.2013 are applicable in respect of all pending cases covered by provisions of section 276B 276BB, irrespective of their stage such as identification, filing of complaint, compounding etc. 6. All the CCsIT DGsIT are requested to bring the clarification to the notice of all concerned in their region. Yours faithfully (Rajat Mittal) Under Secretary (Inv.V), CBDT