Income Tax Department is back after 3 months, to connect with Assessees facing probe [Read Letter]

The Income Tax Department, after a gap of three months, will once again start sending communications to assessees facing investigation or proceedings under the Income Tax Act, black money, or Benami property violations.

On May 8, the Central Board of Direct Taxes (CBDT) has issued the directions that “no communication” is to be made with the assessee having adverse effects on him/her during the period till fresh guidelines are issued.

The CBDT issued a circular that was sent to all Director Generals of Income Tax (Investigation) and Chief Commissioners of Income Tax wherein it was stated that the issue with regard to making communication with the assessee by the officers of the Investigation Directorate and central charges of the Income Tax Department has been considered.

The CBDT further said that this would be applicable for proceedings under the Income Tax Act, 1961, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and Prohibition of Benami Property Transactions Act, 1988.

“However, in view of the hardships being faced by the taxpayers in coping with the challenges posed by the COVID 19 pandemic, it is important that the concerned officers of the Income Tax Department recognize the same and are sensitive to it,” the CBDT said in the circular.

“Therefore, as far as possible, the communications should be made electronically and social distancing norms should be followed without diluting the significance of the proceedings,” the CBDT said.