662/CBDT. - Income Tax - 662/CBDT

INSTRUCTION NO. 662/CBDT Dated : March 2, 1974 Section(s) Referred: 233B of Companies Act Statute: The Income-tax Officers assessing the various companies should before completing an assessment examine whether the Cost Audit has been done as per the provisions of section 233B of the Companies Act in case companies assessed by them come within the purview of these provisions and if so, examine the report of the Auditor on the Cost accounts and statements maintained by the company. At present the statutory cost audit under section 233-B of the Companies Act, 1956 is not an annual feature. Therefore, the statutory cost audit report may not become available in all cases to the Income-tax Officers if a particular company is not subjected to Cost Audit in the relevant year. As the Cost Accounting Records and the Cost Statements prescribed in the various Cost Accounting Records Rules are in any case to be maintained on a regular basis, by the companies covered by the relevant Rules, in such cases where Cost Audit reports are not available, the Income-tax Officers may call for these Cost Statements and Cost Accounting Records and examine them for the purpose of determining the income of the company.