Audit memos received by ITO - handling thereof - Income Tax - 612/CBDT

INSTRUCTION NO. 612/CBDT Dated : September 7, 1973 Reference is invited to para 6 of the Board's Instruction No.159 F.5/6/69 -IT(Audit) dated 16-4-70 requiring that the audit memos received by the ITOs from the Revenue Audit parties should be replied to with the greatest expedition and in any case within 3 days of the date of receipt of the memo. In spite of these clear instructions, instances have come to the notice of the Board about undue delay on the part of ITOs in replying to Revenue Audit queries. Even where the validity of the audit objection needs further consideration in consultation with higher authorities, the ITO should promptly inform the Revenue Audit about the position with regard to the facts and figures given in the audit memo. The said facts and figures should either be accepted after check or if scrutiny reveals discrepancy, the same should be pointed out without loss of time. Delay in setting the records straight immediately, leaves the Revenue audit version in the field. Where it is found that the mistake pointed out by the Revenue Audit has already been brought to the notice of the Department by the assessee, or by the Internal Audit, this fact should also be promptly brought to the notice of the Revenue Audit and this would help in having the Revenue Audit objection settled right then, avoiding the need for Revenue Audit to send draft paras about the mistake to the Ministry. The officers may please be asked in the charge to abide strictly by the above-noted directions and any laxity in the matter should be adversely viewed.