Working of Inter Departmental Machinery set up under Bond's Instruction No. 1552 - Dt. 8.2.84 - Action regarding - Income Tax - 188

CIRCULAR NO. 188 DATED 15.11.1988 Working of Inter Departmental Machinery set up under Bond's Instruction No. 1552 - Dt. 8.2.84 - Action regarding - With a view to expediting the settlement of major receipt audit objections monthly meetings of IAC (Audit) (Now DC (Audit) with the DAG/Sr.DAG/Jt. Director and quarterly meetings of Cs.IT and AGs/Directors of Receipt Audit have been prescribed under the Board's Instructions referred to above, in order to monitor the settlement achieved in these meetings a quarterly report has been also prescribed under the above instructions. 2. An analysis of the quarterly reports received in 1987-88 shows that these reports were received only from 48 CsIT in the quarter ended June, 1987, from 38 Cs.IT in the quarter ended September, 1987 and from 44 Cs.IT in the quarter ended December, 1987, as against 96 charges from which these reports were due in these quarters. The position was slightly better in the quarter ended March, 1988 in which these reports were received from 66 charges as against 90 from whom these were due. The reports show that number of meetings held between the DC (Audit) and his counterpart in Receipt Audit was 26 in June, 1987, 12 In September, 1987, 7 in December, 1987 and 8 in March, 1988. This shows that monthly meetings were not held in many charges. The reports also show that not a single meeting was held between the CIT and the AG in 1987-88 in the charges from which the quarterly reports have been received. 3. May be remembered that the Inter Departmental Machinery created under the Board's Instruction referred to above is a very important forum, the optimum use of which should be made to maximise the settlement of pending major receipt audit objections. In this context, it is Important to hold the meetings once every quarter between the CIT and the AG to sort out contentions issues involved in the settlement of objections. The Cs.IT should ensure not only that the regular meetings are held by the DCs(Audit) under them with the DAG/Sr. DAG but also that the proper liaison is maintained by them with AGs which would go a long way in achieving the objective in setting up the Inter Departmental Machinery. The CsIT are, therefore, requested to devote attention to this important area to ensure that a large number of settlement of objections is effected through this forum. 4. The CsIT may also apprise the DIT(Audit) in case of any difficulty in holding these meetings, so that if necessary, the matter will be taken up with the CBDT and the C AG. I would expect that the next quarterly report would show that meetings have been held in every charge between the CIT and the AG concerned. The initiative taken in this regard needs to be maintained on a continuing basis. 5. The receipt of this Circular may please be acknowledged