Tax Authorities authorised to monitor/intercept electronic information, stored in any computer

Tax Authorities can now keep a watch on electronic information generated, transmitted, received or stored in any computer resource

Section 69 of the Information Technology Act, 2000 authorises Central or State Government to issue directions for interception or monitoring or decryption of any information through any “computer resource”. The “computer resource” means computer, computer system, computer network, data, computer data base or software.

Where the Central Government or a State Government or any of its officers specially authorised by the Central Government or the State Government, as the case may be, in this behalf may, if satisfied that it is necessary or expedient to do in the interest of the sovereignty or integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above or for investigation of any offence, it may direct any agency of the appropriate Government to intercept, monitor or decrypt or cause to be intercepted or monitored or decrypted any information generated, transmitted, received or stored in any computer resource.

The subscriber or intermediary or any person in-charge of the computer resource, when called upon by the authorised agencies is required to cooperate with the agencies authorised and extend all facilities and technical assistance to

(a) provide access to the computer resource generating, transmitting, receiving or storing the information under question,

(b) intercept, monitor, or decrypt the information

(c) provide information stored in computer resource.

The subscriber or intermediary or any person who fails to assist the authorised agencies is punishable with imprisonment up to seven years apart from fine.

Now, the Ministry of Home Affairs has widened the list of Security and Intelligence Agencies for the purposes of interception, monitoring and decryption of any information generated, transmitted, received or stored in any computer resource under the Information Technology  Act 2000 Act and included CBDT as one of the agencies.

Meaning thereby the Tax Authorities would be now intercepting and monitoring  electronic information stored in a computer system, computer network, data, computer data base or software for the purpose of investigation of any offence under the Income Tax Act, 1961 and/or Income Tax Rules.

The Order issued in this regard reads as under:

MINISTRY OF HOME AFFAIRS
(CYBER AND INFORMATION SECURITY DIVISION)

ORDER

New Delhi, the 20th December, 2018

S.O. 6227(E).—In exercise of the powers conferred by sub-section (1) of section 69 of the Information Technology Act, 2000 (21 of 2000) read with rule 4 of the Information Technology ( Procedure and Safeguards for Interception, Monitoring and Decryption of Information) Rules, 2009, the Competent Authority hereby authorises the following Security and Intelligence Agencies for the purposes of interception, monitoring and decryption of any information generated, transmitted, received or stored in any computer resource under the said Act, namely:—

(i) Intelligence Bureau;

(ii) Narcotics Control Bureau;

(iii) Enforcement Directorate;

(iv) Central Board of Direct Taxes;

(v) Directorate of Revenue Intelligence;

(vi) Central Bureau of Investigation;

(vii) National Investigation Agency;

(viii) Cabinet Secretariat (RAW);

(ix) Directorate of Signal Intelligence (For service areas of Jammu & Kashmir, North-East and Assam only);

(x) Commissioner of Police, Delhi.

[No.14/07/2011-T]

RAJIV GAUBA, Union Home Secy