New I-T directorate set up to deal with criminal matters

The government today announced the creation of a new Directorate of Income Tax (Criminal Investigation) to deal with criminal matters having any financial implications punishable as an offence under any direct tax law.

To be known in short as DCI, the new income tax directorate in the Central Board of Direct Taxes, Department of Revenue, will be headed by an officer of the rank of chief commissioner of income tax.

The DCI will look into criminal matters having any financial implications punishable as an offence under any direct tax law, including, inter alia, Chapter XXII of the Income Tax Act 1961 (Act 43 of 1961) and Chapter VIII of the Wealth Tax Act 1957 (Act 27 of 1957), a government release said today.

The DCI will be responsible for collecting information about persons suspected to be involved in criminal activities and transactions having cross-border, inter-state or international ramifications or pose a threat to national security and are punishable under the direct tax laws.

In discharging its responsibilities in relation to investigation of criminal activities, DCI will have to:

• Investigate the source and use of funds involved in such criminal activities;
  
• Cause issuance of a show-cause notice for offences committed under any direct tax law;
  
• File prosecution complaint in the competent court under any direct tax law relating to a criminal activity;
  
• Hire services of special prosecutors and other experts for pursuing a prosecution complaint filed in any court of competent jurisdiction;
  
• Execute appropriate witness protection programmes for effective prosecution of criminal offences under the direct tax laws, ie, to protect and rehabilitate  witnesses who support the state in prosecution of such offences so as to insulate them from any harm to their person;
  
• Coordinate with and extend necessary expert, technical and logistical support to any other intelligence or law enforcement agency in India investigating crimes  having cross-border, inter­state or international ramifications that pose a threat to national security;
  
• Eater into agreements for sharing of information and other cooperation with any central or state agency in India; and
  
• Enter into agreements for sharing of information and other cooperation with such agencies of foreign states as may be permissible under any international  agreement or treaty and any other matter relating to the above.

The DCI will be headed by a Director General of Income Tax (Criminal Investigation), who will be an officer of the rank of Chief Commissioner of Income Tax, and will be located in New Delhi. The DCI will function under administrative control of the member (investigation) in the Central Board of Direct Taxes (CBDT) and will be a subordinate office of CBDT.