Powers of DG I&I IR withdrawn: enforcing filing of returns, wealth statements

Fulfilling a major demand of business community, the Federal Board of Revenue (FBR) has withdrawn powers of the Directorate General (Intelligence & Investigation), Inland Revenue (IR) to enforce filing of returns/wealth statements and carryout assessments/provisional assessments of registered persons. In this regard, the FBR has superseded SRO.251(I)/2014 and issued three SROs ie SRO.115(I)/2015, SRO.116(I)/2015 and SRO.117(I)/2015.
According to the notification, the FBR has now empowered the Director General I&I Inland Revenue and Director I&I IR Headquarters to investigate Suspicious Transactions Reports (STRs) or other assets of persons or classes of persons impounded by any department or agency of the federal or provincial government and prepare/transmit reports to respective RTOs or LTUs for the purpose of application of Section 111 and for taking appropriate action under the Ordinance.
The FBR has issued separate notifications for powers and jurisdiction of the officers of Directorate General (Intelligence & Investigation), IR under Income Tax Ordinance 2001, Sales Tax Act, 1990 and Federal Excise Act 2005. Sources said that the officers of Directorate General (Intelligence & Investigation), IR would no more be empowered to exercise powers under section 114 (return of income), section 116 (wealth statement), section 119 (extension of time for furnishing returns and other documents), section 120 (assessments), section 121 (Best judgement assessment), section 122 (amendment of assessments), section 122A (revision by the Commissioner), section 122C (provisional assessment), section 123 (provisional assessment in certain cases), section 124 (assessment giving effect to an order), 124A (powers of tax authorities to modify orders, etc), section 125 (assessment in relation to disputed property), section 126 (evidence of assessment).
Sources said that through superseded SRO 351(1)2014, dated 07-05-2014 (which superseded earlier notification SRO 51(1)/2013) end-to-end powers were granted to Directorate General of Intelligence and Investigation (IR) for the purpose of making assessment and recovery. However, due to various representations and agitation by taxpayers and trade bodies/associations, Federal Government suspended SRO 35 1(1)/2014 and a two member parliamentary committee was formed by the Finance Minister, comprising MNAs, Mian Abdul Manan and Muhammad Pervaiz Malik, to review the said SRO, on the jurisdiction and powers to be exercised by Directorate General of Intelligence and Investigation-(IR), sources said.
The committee examined both SROs ie SRO 351 and SRO 51 and recommended that instead of granting end-to-end powers under SRO 351 the same may be limited to powers and functions as assigned under superseded SRO 51. Practically, old SRO.51 has been resorted, they added.
Resultantly, the FBR has issued SRO.115(I)/2015, SRO.116(I)/2015 and SRO.117(I)/2015. Under Income Tax Ordinance 2001, officers of Directorate General (Intelligence & Investigation), IR would now be empowered to exercise powers under sections 174, 175, 176, 177 (other than power to initiate audit), 178, 179, 180, 181, 182, Part III, Part XI of Chapter X, Sections 205 and 221.
Through SRO.116(I)/2015, certain officers of Directorate General (Intelligence & Investigation), IR have been empowered to exercise powers under sections 21(4), 25(1), 25(2) 25A, 25AA, 31, 32, 33, 37, 37A, 37B, 37I, 38, 38A, 38B, 40, 46, 47 and 57 of the Sales Tax Act 1990. Through SRO.117(I)/2015, officers of Directorate General (Intelligence & Investigation), IR have been empowered to exercise powers under sections 19, 21A, 22, 23, 24, 25, 26, 27, 28, 30, 32, 34, 34A, 36, 45(1), 46(1) & 46(2) of the Federal Excise Act, 2005 read with relevant Rules of Federal Excise Rules, 2005.