The taxman may no longer be able to bully the assessee during an income tax survey. On doing so the latter can now directly call up the most senior officers during the operation. Surveys are checks carried out at the tax-payers' business premises generally by junior officers on the basis of permission by additional or joint commissioners of income tax.
Unlike a search and seizure operation conducted by the investigation wing of the department, surveys are limited to the business premises. The officers do not have the right to seize cash or other assets during the process.
However, surveys take place more frequently than a search, commonly known as raid, and are also handier tool to extract disclosures. There have been reported instances of arm-twisting the assessee, as it is easier to get permission for survey. Often disclosures are forced against assessees will, sources in the department said.
A recent order has been issued to do away with such abuse of powers by the officials during surveys. The order by Central Board of Direct Taxes (CBDT) says that the surveying party has to identify itself by naming senior officers. A specific format has been made giving the names, landline as well as cell phone numbers of the officers up to Chief Commissioner of Income Tax (CCI-T)-the senior most officers in a station.
In case of any grievance against the surveying party, the assessee can call up any of the officers and register a complaint. The officials will have to compulsorily carry the format having the numbers and get the assessee's signature on the document saying it was provided to them, said CCI-T Nagpur M D Kabra.
The new order is expected to lead to transparency in the whole affair giving a full chance to the assessee to promptly report any mischief by the team. In case the team does not provide the seniors' numbers, the assessee has the right not to cooperate during the survey, he added.
The Nagpur commissionerate, which covers entire Vidarbha, conducted 130 surveys during the last financial year leading to disclosure of Rs 71 crore.
However, this rule will not apply to a search and seizure operations where normally the senior officers are involved. A survey can be easily conducted on the basis of a permission by the relevant officer. In case of a search, a report by the director general investigation wing is required to certify it was indeed warranted. A survey team is headed by junior officers like an assistant commissioner or income tax officers.
Rajesh Loya, former chairman of Institute of Chartered Accountants of India's Nagpur branch, said at times assessee felt like complaining to the higher-ups. The new procedure will make redressal easy for the tax-payers, he said.
Unlike a search and seizure operation conducted by the investigation wing of the department, surveys are limited to the business premises. The officers do not have the right to seize cash or other assets during the process.
However, surveys take place more frequently than a search, commonly known as raid, and are also handier tool to extract disclosures. There have been reported instances of arm-twisting the assessee, as it is easier to get permission for survey. Often disclosures are forced against assessees will, sources in the department said.
A recent order has been issued to do away with such abuse of powers by the officials during surveys. The order by Central Board of Direct Taxes (CBDT) says that the surveying party has to identify itself by naming senior officers. A specific format has been made giving the names, landline as well as cell phone numbers of the officers up to Chief Commissioner of Income Tax (CCI-T)-the senior most officers in a station.
In case of any grievance against the surveying party, the assessee can call up any of the officers and register a complaint. The officials will have to compulsorily carry the format having the numbers and get the assessee's signature on the document saying it was provided to them, said CCI-T Nagpur M D Kabra.
The new order is expected to lead to transparency in the whole affair giving a full chance to the assessee to promptly report any mischief by the team. In case the team does not provide the seniors' numbers, the assessee has the right not to cooperate during the survey, he added.
The Nagpur commissionerate, which covers entire Vidarbha, conducted 130 surveys during the last financial year leading to disclosure of Rs 71 crore.
However, this rule will not apply to a search and seizure operations where normally the senior officers are involved. A survey can be easily conducted on the basis of a permission by the relevant officer. In case of a search, a report by the director general investigation wing is required to certify it was indeed warranted. A survey team is headed by junior officers like an assistant commissioner or income tax officers.
Rajesh Loya, former chairman of Institute of Chartered Accountants of India's Nagpur branch, said at times assessee felt like complaining to the higher-ups. The new procedure will make redressal easy for the tax-payers, he said.
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