Circular No. No.291/15/2011-IT (Inv.I)

No.291/15/2011-IT (Inv.I)

What this is

Circular No. No.291/15/2011-IT (Inv.I) was issued by the Central Board of Direct Taxes on 27 May 2011. Its subject is No.291/15/2011-IT (Inv.I).

What it does

Constitutes a committee to examine ways to strengthen the laws against the generation of black money in India, its illegal transfer abroad and its recovery. It is chaired by the Chairman of the Board and includes the Member (Legislation and Computerisation), the Director of the Enforcement Directorate, the Director General of Revenue Intelligence, the Director General of Currency, the Joint Secretary (Foreign Tax and Tax Research), a Joint Secretary of the Ministry of Law, the Director of the Financial Intelligence Unit, with the Commissioner of Income-tax (Investigation) as Member Secretary. The committee is to examine the existing legal and administrative framework, including declaring illegally generated wealth a national asset, enacting or amending laws to confiscate and recover such assets, and providing exemplary punishment. It is to consult all stakeholders and report within six months.

Why it was issued

It was decided, with the approval of the competent authority, to constitute the committee for that purpose; no other reason is given.

Who it reaches

Nobody in a proceeding — it constitutes a committee
Readers tracing the origin of the later black money legislation

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

No.291/15/2011-IT (Inv.I)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

***

New Delhi dated 27nd May 2011

OFFICE MEMORANDUM

Sub: Committee to examine ways to strengthen laws to curb generation of black-money in India, its illegal transfer and abroad and its recovery.

It has been decided with the approval of competent authority to constitute a Committee to examine ways to strengthen laws to curb the generation of black-money in India, its illegal transfer abroad and its recovery. The Committee shall consist of the following officers:-

Chairman, CBDT – Chairman of Committee

Member (L&C), CBDT – Member

Director, ED - Member

DG, DRI - Member

DG Currency – Member

Joint Secretary (FT&TR), CBDT – Member

Joint Secretary, MoL – Member

Director, FIU-IND - Member

CIT (Inv), CBDT – Member Secretary

2. The Committee shall examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including, inter alia,

Declaring wealth generated illegally as national asset;

Enacting / amending laws to confiscate and recover such assets; and

Providing for exemplary punishment against its perpetrators.

3. The Committee shall consult all stakeholders and submit its report within a period of six months.

(D K Gupta)

Director (Inv-I)

FM / Pr. Secy. to PM / Cabinet Secy. / Advisor to FM / Revenue Secy.
Chairman / Members of the Committee.

What to watch

This is a constitution order with terms of reference and a reporting timeline; it changes no law and gives no relief.
Its significance is only as the origin of recommendations that later fed into legislation.

Where you meet it

Only as background when tracing how the law on undisclosed foreign income and assets came to be framed.

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.