The mistakes of under-charge of tax or overcharge of tax detected by the revenue audit parties in the audit cycle. - Income Tax - 358/CBDT

INSTRUCTION NO. 358/CBDT Dated: December 15, 1971 By the end of September every year, about six months before the publication of the C AG's reports on the audit of Revenue receipts the AG send to the respective CsIT the lists of cases pertaining to their respective charges; the lists show the mistakes of under-charge of tax or overcharge of tax detected by the revenue audit parties in the audit cycle ending on 31st August. One set of the copies of such lists is also sent by the C AG to the board, who ask the commissioners about the accuracy or otherwise of the facts and figures given in the lists. While offering their comments in the past the commissioners reported a very large proportion of the objections figuring in the lists to be under consideration. The board are concerned to notice that hardly any report regarding the ultimate disposal of such cases has since come. As the C AG has been enquiring of the board the present position of the cases which were reported to have been under consideration and they are unable to state it, the board feel greatly embarrassed. 2. Till the Audit report 1971 the C AG reported in a consolidated paragraph the aggregate amount of under-charge or over-charge of tax relating to income-tax assessments only. It will be of general interest to study how the mistakes detected by the Revenue Audit parties compare in relation to the number of cases checked by them. 3. The board are most anxious to put the records straight regarding 87,071 cases involving mistakes which were reported in the Audit reports for six years from 1966 to 1971. They wish not only to have the outstanding objections settled, but also to be clear about how many objection did the department accept and how many it did not. With this end in view, they would like to have information in the proforma regarding such cases for the six years covered by the Audit reports 1966 to 1971. 4. Please acknowledge receipt of this letter.