The Central Board of Direct Taxes (CBDT), in an order under Section 119 of the Income-tax Act, has restricted coercive or intrusive powers of assessing officers or tax recovery officers for tax recovery.
The new order now allows coercive/intrusive measures only after exhaustion of other means of recovery and restrict recovery surveys to the non-responsive/non-traceable taxpayers.
Surveys will now be allowed only by Investigation and TDS wings of the tax department. The order also proposes setting up of a two-member collegium of Principal Chied Commissioner and Chief Commissioner rank officers for screening of survey for cases other than TDS.
Shailesh Kumar, Partner, Nangia & Co LLP said, “The detailed guidelines issued by the CBDT providing stringent conditions for tax recovery proceedings by Income Tax authorities are much welcome.”
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