Creation of the Directorate of Income-tax (Criminal Investigation)

 Creation of the Directorate of Income-tax (Criminal Investigation)

NOTIFICATION NO. 29/2011

[F.NO. 286/179/2008-IT(INV.II)]

DATED 30-5-2011

The President of India is pleased to approve the creation of the Directorate of Income-tax (Criminal Investigation), to be known in short as DCI, in the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, with immediate effect.

2. The DCI will perform functions in respect of criminal matters having any financial implication punishable as an offence under any direct tax law including, inter alia :

  (i)  Chapter XXII of the Income-tax Act, 1961 (Act 43 of 1961); and

 (ii)  Chapter VIII of the Wealth Tax Act, 1957 (Act 27 of 1957).

3. The DCI, in discharge of its responsibilities under the direct tax laws, will be required to perform the following functions:

 (a)  Seek and collect information about persons and transactions suspected to be involved in criminal activities having cross-border, inter-State or international ramifications, that pose a threat to national security and are punishable under the direct tax laws;

 (b)  To investigate the source and use of funds involved in such criminal activities;

 (c)  To cause issuance of a show-cause notice for offences committed under any direct tax law;

 (d)  To file prosecution complaint in the competent court under any direct tax law relating to a criminal activity;

 (e)  To hire the services of special prosecutors and other experts for pursuing a prosecution complaint filed in any court of competent jurisdiction;

 (f)  To execute appropriate witness protection programmes for effective prosecution of criminal offences under the direct tax laws, i.e. 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;

 (g)  To 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, inter-State or international ramifications that pose a threat to national security;

 (h)  To enter into agreements for sharing of information and other cooperation with any central or state agency in India;

  (i)  To 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

  (j)  Any other matter relating to the above.

4. 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.

5. The DCI shall have eight Directors of Income-tax (Criminal Investigation) located at Delhi, Chandigarh, Jaipur, Ahmedabad, Mumbai, Chennai, Kolkata and Lucknow. These Directorates will be headed by officers of the rank of Commissioner of Income-tax who will perform such functions as are notified or assigned to them by the CBDT. The CBDT shall have all powers to amend the functions assigned to the DCI.

6. The headquarters of the DCI shall consist of a Director General of Income-tax (CI) supported by a Director of Income-tax (CI), an Additional Director of Income-tax (CI), a Deputy Director of Income-tax (CI) and officials known as Special Agents of the rank of Income-tax Officer and Agents of the rank of Inspector of Income-tax. Each Zonal Directorate of the DCI shall be headed by a Director of Income-tax (CI), and shall be supported by an Additional Director of Income-tax (CI), a Deputy Director of Income-tax (CI) and an appropriate staff complement consisting of Special Agents and Agents.

7. Presently, the staff requirement of DCI will be met from the existing posts of DGIT (Intelligence), DIT (Intelligence) and DIT (CIB) in the Income-tax Department. The final staff requirement and recruitment rules for the DCI will be notified separately.