D.O. of F.M. to all C.M. for providing adequate and timely armed police protection during search and survey action - Income Tax - F.No. 286/300/89-IT(Inv.II)

F.No. 286/300/89-IT(Inv.II) FINANCE MINISTER INDIA NEW DELHI 11.1.1990 Dear Shri The Income-tax Department is statutorily authorized to conduct searches and surveys under the provisions of Income tax Act, 1961 to enable the Government to bring unaccounted income and wealth into the tax net, thereby increasing the revenue collections. Conduct of searches is an important activity not only for checking tax evasion and black money in the cases where such activities are conducted, but also works as a deterrent to other tax evaders. In the recent past, assaults on the Income-tax personnel who are deputed to conduct search and survey operations, have been on the increase. Unless the concerned State Government authorities protect the income-tax personnel on duty in search and survey operations, it would not be possible for them to conduct the same in a smooth and effective manner. The need for curbing tax evasion and increasing revenue collections need not be over-emphasised for a developing economy like ours. 2. Considering the recent spurt in the incidents of organized violence against the income-tax search and survey parties, the Finance Ministry is actively considering certain long-term measures to ensure safely and protection of the Income-tax personnel on duty. In the meantime the Directors General of the Income-tax Department in charge of investigation have been requested to get in touch with the heads of the Police Organisations of the State falling in their regions and explore the possibility of working out standing arrangements with the local police so that adequate and timely armed police protection is provided to the search and survey parlies by the State Police itself. I request you to instruct the Heads of Police Organisations of your State to assist the income tax authorities in full measure as and when requests from them are received for Police assistance in connection with their work relating to search and seizure operations. Keeping in view the fact the a significant proportion of the Income-tax collections go to the States. I trust, you would be equally interested in helping the effective functioning of the Income-tax Department. 3. I shall be gratefull to know the steps taken by your Government in this regard. With regards, Your sincerely, Sd/ (Madhu Dandavate) All Chief Ministers