Guidelines for assessments in search and seizure cases - Income Tax - F. No. 286/161/2006-IT(Inv. II)

F. No. 286/161/2006-IT(Inv. II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 24th August, 09 To All Director Generals of Income Tax (Inv) (Intelligence) All Chief Commissioners of Income Tax (Central) Sir/Madam, Sub : Guidelines for assessments in search and seizure cases - reg Ref : Board s Instructions F.No. 286/161/2006-IT (Inv - II) dt.22.12.2006 F.No.236/161/2006 IT (Inv.- II) dt. 24.07.2007 It is noticed that a large number of search assessments including time barring assessments, are pending with Central circles. It is further noticed that many a times assessee s do not reply to the questionnaires issued to them by the Assessing Officers with an idea to avoid deep investigation into their cases and thinking that near the limitation date, the AO would be rushing through the completion of his assessments without proper investigation. 2. Therefore, while reiterating the guidelines issued in the instructions mentioned above, in the interest of Revenue, certain procedures are partly modified as under: i. In order to assist the Assessing Officers to issue the questionnaires expeditiously, a draft questionnaire will be forwarded by the Investigation Directorates as per Board s Instruction F.No. 286/76/2007-IT(Inv. II) dated 24.08.2009. The Assessing Officer will examine the draft questionnaire and issue it to the assessee in consultation with the Jt. /Addl. CIT(C) within 15 days of its receipt. If the Assessing Officer does not agree with any issue mentioned in the said draft questionnaire, he in consultation with the Jt./Addl. CIT (C) may modify the questionnaire suitably after recording the reasons in the note sheet. However, the time schedule for issue of the questionnaire may be followed Strictly. ii. DGITs (Inv) /CCITs (Cent) will ensure that, as far as possible, investigation / inquiries, is made by the AOs directly from independent sources, as per information available in the seized material in AOs possession. AOs should examine / cross-examine various transactions / persons as required as per the seized documents / other material on record not remain dependent merely on the reply of assessee s till last moment and then complete the assessments in a hurry without-proper investigation. iii. The enquiries, as required for the completion of the assessment proceedings should be conducted by the Assessing Officer promptly without waiting for filing of the return by the assesses and the same should be mentioned in the MIS reports. iv. CCs (Cent) / DGs (Inv) may fix a time frame for completion of each search assessment, which the AOs may follow to avoid the last minute rush to meet the limitation dote for completion of assessment. CITs will monitor progress of assts in important cases and discuss matters with Addl CITs and AOs. v. Quality of assessment orders in central circles should be of very high order. Assessing Officers will pass speaking orders highlighting issues emerging in a case. Submissions made by assesses should invariably be incorporated and reasons for non-acceptance / rejection of the same should also be mentioned in the assessment order. 3. The above guidelines may be brought to the knowledge of all Income Tax /Authorities working in your region. Yours faithfully, (D. Srinivas) Director (Inv. II III)