New Delhi: The Central Board of Direct Taxes today denied news reports suggesting Income Tax department officers have been told to arrest wilful defaulter.
In a statement issued by the CBDT it said, " Certain sections of the press have been carrying news reports today that Income Tax Department is going to arrest wilful defaulters of tax."
" In this regard, it is clarified that no such statement has been authorised by the Income-tax Department. Though the provisions for arrest and detention by the Tax Recovery Officers in respect of the non-compliant tax defaulters are contained in the Income-tax Act, these are used extremely sparingly.," reads the statement.
Earlier, it was reported that with a swell in numbers of wilful defaulters, the tax authority has asked its officers not to shy away from invoking the rare provisions of arrest, detention and auctioning of attached assets of the accused.
Bsides, the IT department had also warned that it will attach or auction assets of wilful tax defaulters besides revoking their LGP subsidy and blocking their pan cards.
The I-T department has a designated official to execute these rare powers, called the Tax Recovery Officer (TRO) within its establishment.
"The machinery of the TRO should be strengthened by providing more infrastructure and manpower. The TROs should be further trained specifically for their work in order to increase their effectiveness. In respect of non-compliant defaulters, the provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II should be invoked by the TRO.
"Stringent action can be taken in suitable cases including use of the provision for prosecution under section 276C(2) of the Act," it said.
The Central Board of Direct Taxes, in a strategy paper for the current financial year, has directed the tax department to use this provision, used rarely till now, stated under Section 276C (2) of the Income Tax Act that stipulates action to ensure rigorous imprisonment for a period between three months and three years which may also carry a fine.
