Section 276CC of the Income Tax Act is for prosecution provision for assessees who failed to file tax return ( non-filers ) in due time . CBDT had last year did an exercise to identify the persons who were required to file tax return for assessment year 2013-14 , but did not file the tax return. They were issued notice or letter asking them to file tax return . However, it has appeared to CBDT that many of the so called defualters have not filed tax return even after the excercise.
Instruction to Prosecute Non-Filers
CBDT has now directed field officers to start the procecution proceeding u/s 276CC of the Income Tax Act vide instruction no EFS INSTRUCTION NO.55 [F.NO.JDIT(S)-2(4)/SYSTEMS DIRECTORATE/CBDT/011/2014-15], DATED 22-3-2016
SECTION 276CC OF THE INCOME-TAX ACT, 1961 – OFFENCES AND PROSECUTION – RETURNS OF INCOME, FAILURE TO FURNISH – POTENTIAL CASES FOR CONSIDERATION OF PROSECUTION UNDER SECTION 276CC
EFS INSTRUCTION NO.55 [F.NO.JDIT(S)-2(4)/SYSTEMS DIRECTORATE/CBDT/011/2014-15], DATED 22-3-2016
As per Central Action Plan 2015-16, Systems Directorate was directed to identify the potential cases for prosecution under section 276CC (prosecution for non-filing of return of income). Earlier, non-filers for AY 2013-14 were identified by Systems Directorate for NMS Cycle-3. The last date for filing the return of income for the AY 2013-14 was 31-3-2015, and therefore the taxpayers identified under NMS Cycle-3 that have neither filed the return of income nor have submitted the response have been identified as potential prosecution cases under section 276CC.
2. These cases have been pushed into a functionality named “Actionable Information Monitoring System (AIMS) (Path: ITD-> EFS->CIB->AIMS). The functionality provides an option to view ITS information and to mark the case as “Proposed for prosecution” and “Not proposed for prosecution”. The EFS Instructions are available on i-taxnet (Path: Resources-> Downloads -> Systems ->ITD Instructions ->Instruction -EFS/CIB).
3. The Assessing Officers may be instructed to view the information and take necessary action under section 276CC if the conditions prescribed under section 276CC are fulfilled.