CBDT issues stringent guidelines for coercive/intrusive tax recovery

written by Income tax Expert | October 29, 2020

CBDT, with immediate effect, by order u/s 119 restricts the coercive/intrusive powers of AO/TRO for tax recovery;

1. TDS charges: Reminds that Sec. 133A has been amended to allow survey only by Investigation and TDS wings;

2. Allows coercive/intrusive measures only after exhaustion of other means of recovery;

3. Restricts recovery surveys to the non-responsive/non-traceable taxpayers;

4. Orders for setting up a 2 members collegium of Pr.CCIT/CCIT rank for screening of survey for cases other than TDS;

5. If for any reason survey u/s 133A is required by exemption charge, verification of trust for registration u/s 12A/ 80G/ 10(23C) shall be done through electronic means by the officer of exemption charge.

6. Excludes involvement of AO/TRO from surveys;

7. Mandates Pr.CCIT/CIT for monitoring of survey to ensure that it’s restricted to the scope approved by the collegium;

8. Survey team to prepare a report and share the same on ITBA and concerned AO/TRO;

9. Presses for strict compliance with Second Schedule, Survey Manual, and Guidelines for attachment of movable/immovable properties.

10. All the surveys under 133A shall be conducted by Investigation wing independently and same shall be approved by DGsIT (Inv.)

 

To download the full order CLICK HERE.