CBDT warns officers against political intervention in transfer postings

In a circular issued to all Principal Chief Commissioners and Director General Income Tax on October 1, the CBDT says, “Instances have come to notice where IRS officers/officials have violated the aforementioned provisions of the CCS(Conduct) Rules 1964 and attempted to bring political or other outside influence to bear upon any superior authority to further their interest in respect of matters pertaining to their service under the Government. It is necessary to keep in mind the aforesaid provisions and desist from approaching the political or any other outside influence”.

The CBDT is the topmost authority on policy-making related to direct taxes. Such an advisory from any government authority is quite unusual.

The CBDT is set to issue transfer orders for its officers in the coming days. While this is ostensibly done without fear or favour, in practice officers often try to get posted to locations that are suitable for them. Most officers seek a posting in either Mumbai or Delhi. The investigation department is considered a plum posting where officers try to exert influence through political intervention.

Postings in prime locations and departments often enable a faster climb up the organisational ladder.

All officers/officials of income tax have been advised to follow the CCS(Conduct) Rules and any failure will be viewed very seriously, the circular said.

Under the Central Civil Services (Conduct) Rules if any officer violates the provisions, a warning can be issued against him/her, negative entry in appraisal and even disciplinary action can be taken.  A commissioner-rank official told Moneycontrol on condition of anonymity that "the top-most level of CBDT is also politically influenced, and a culture of political intervention was started by top officials and it is a drip-down effect."

The CBDT had issued a similarly-worded letter in 2017 as well as warning IRS officers not to influence postings through political or outside sources for personal interests.

From June this year, large-scale transfer orders were issued from the level of ACIT/DCIT to Principal CCITs and DGITs. It is believed that the CBDT is subject to political as well as other influences with respect to postings of IRS and other officials.