INCOME TAX

INSTRUCTION NO. 7/2003

 Dated : July 30, 2003

Subject : Search & Siezure - Matters relating thereto.

With a view to focus on high revenue yielding cases and to make the optimum use of manpower, the Board has decided that officers deployed in the Investigation Wing should restructure their activities. They should henceforth strictly adhere to the following guidlines:-

(i) Searches should be carried out only in cases where there is credible evidence to indicate substantial unaccounted income/assets in relation to the tax normally paid by the assessee or where the expected concealment is more than Rs. 1 crore;

(ii) Search operation will also be mounted when there is evidence of hidden unaccounted assets arising out of a conspiracy to cause public harm, terrorism, smuggling, norcotics, fraud, gangsterism, fake currency, fake stamp papers and such other manifestations;

(iii) Tax payers who are professionals of excellence should not be searched without there being compelling evidence and confirmation of substantial tax evasion.

2. Henceforth, search operations shall be authorized only by the concerned DGIT (Inv.) who will be accountable for the action initiated by the officers working under him. He should also ensure that all the work relating to search & seizure, like post-search enquiries, preparation of appraisal repot and handing over of seized books of accounts, etc. should be completed by the Investigation Wing within a period of 60 days from the date on which the last of the authorisations for search was executed.

3. DGsIT (Inv.) are requested to ensure that officers of competence and proven integrity are taken in the Investigation Wing. The officers posted in the Investigation Wing will be trained at NADT in a special course for which arrangement will be separately made.

4. DGsIT (Inv.) are required to ensure strict complaince of the above guidelines/instructions.

F.No. 286/77/2003-IT (Inv.II)