Excel for
Chartered Accountants

I. Role of Principal CCIT/CCIT(TDS):
(i) Taking quarterly review meeting with CIT(TDS) monitoring progress in all cases identified for prosecution.

(ii) Apprising the Zonal Member of the progress/ outcome made during the month through monthly DO. Copy of such progress shall also be sent to Pr. DGIT(Admn.), New Delhi for information and monitoring.

(iii) Disposing all compounding petitions received expeditiously and within the time period prescribed in the Central Action Plan. While disposing off compounding petitions, speaking orders are expected to contain those facts based on which a fair and judicious view has been taken in accordance with relevant provisions of the Income Tax Act, 1961.

II. Role of CIT(TDS)
(i) Ensuring that the Guidelines issued vide F.No.285/35/2013-IT(Inv.V)/108 dt. 23.12.2014 are adhered to.

(ii) Monitoring the action in the cases of mandatory processing for prosecution generated by the CPC-TDS on a monthly basis.

(iii) Guiding AO(TDS) to shortlist the cases for processing of prosecution on the basis of list-B and identified on the basis information received from external sources such as spot verification/survey and monitoring action thereon.

(iv) Maintaining a register in Form-D or in online utility as and when made available in TRACES wherein record of all cases identified for prosecution should be kept.

(v) Processing all the proposal received by him and if he is of the opinion that the case is prima facie fit for prosecution, issue show cause notices to the accused(s) u/s 276B/276BB r.w.s. 278B or 278C as to why sanction for launching of prosecution should not be accorded.

(vi) Seeking opinion of the Prosecution or Standing Counsel, as the case may be, about suitability of the case for launching of prosecution and as well as strength of the case against accused(s). Ensuring that the opinion is obtained from the Counsel within 30 days.

(vii) Examining the opinion of the Standing Counsel and on satisfaction that it is a fit case for prosecution, passing speaking orders u/s 279(1) in the case of accused(s) for each assessment year separately. In case he is not satisfied, he shall drop the proceedings.

(viii) Completing the process and passing an order u/s 279 sanctioning prosecution or dropping the show cause notice within 60 days of receipt of the proposal.

(ix) Making an entry for the following events in the manual register or in the utility created in TRACES:
a. On receipt of proposal from the AO(TDS).
b. On issue of show cause notice to the accused / co-accused.
c. On passing of sanction order u/s 279(1) or on dropping of the proceedings as the case may be.
d. On receipt of compounding application / report on the compounding application.
e. On filing of complaint / launching of prosecution before the competent court.
f. On receipt of order of competent Court
g. On appeal, if any appeal is filed.

III. Role of Addl.CIT(TDS)
(i) Discussing cases of list-B generated by CPC-TDS and list prepared on the basis of information received from external sources such as spot verification/survey with AO(TDS) and also guiding them in short listing the cases fit for prosecution.

(ii) Monitoring timely action in all the cases involving mandatory processing for prosecution or cases identified otherwise and to report the progress to the CIT (TDS) in the monthly DO.

IV. Role of AO(TDS)
(i) Downloading list of cases identified by CPC-TDS for mandatory proceeding of cases (list-A).

(ii) Downloading list-B of cases for identification of cases based on facts and circumstances of the cases and also to examine cases on the basis of information gathered from external sources such as spot verification / surveys and shortlist cases fit for prosecution amongst these cases after discussion with Range Head and CIT(TDS).

(iii) Initiating action and collecting information in accordance with the procedures laid down above.

(iv) Issuing show cause notice to all the accused(s) identified by him giving due opportunity to the accused within 45 days of receipt of the list of prosecutable cases from CPC-TDS.

(v) Sending the proposal prepared in Form ‘F’ alongwith other information / documents to the CIT(TDS) through proper channel.

(vi) Making an entry for the following events in the manual register or as and when in the utility made available in TRACES:
a. Initiation of proceedings for prosecution.
b. Sending the proposal to the CIT(TDS) for necessary action.
c. Date of receipt of sanction u/s 279(1) of CIT(TDS).
d. Filing of complaint / launching of prosecution in the competent court on receiving order u/s 279(1).
e. In case report on the compounding application is to be sent on filing of compounding application by the deductor, date of the report as well as when order on such application is received from the competent authority.
f. On receiving orders of the competent Court in the case, date of filing of appeal, if any filed.

V. Role of CIT(CPC-TDS), Ghaziabad:
(i) Generating list-A of defaulters along with their statement of defaults for mandatory processing of cases for prosecution involving delayed payment of Rs. 1 lakhs or more as prescribed in the present Instruction and make it available to AO(TDS) as well as the CIT(TDS) within one month of the filing of the quarterly TDS statement.

(ii) Generating list-B of cases involving defaults of delay in payment of Rs. 25,000/- to 1,00,000/- alongwith default sheets for the year as well as proceeding year and subsequent year (if dates are available), to help CIT(TDS) AO(TDS) to identify cases fit for prosecution based on facts & circumstances of the cases within one month of the filing of the quarterly TDS statement.

(iii) Generating a list of non-filers of TDS statement within one month of the due date and communicating to the AO(TDS) with a copy to the CIT(TDS).

(iv) Developing and maintaining a specific module/utility in TRACES for identification and control over prosecution proceedings where all the details of each case of prosecution can be maintained online.

See Also:
Standard Operating Procedure for Prosecution In Cases Of TDS/TCS Default Click Here >>

CBDT-Standard Operating Procedure (SOP) Defining Roles of TDS Authorities, CPC Ghaziabad in Prosecution, Compounding of TDS Cases | 03-02-2015|