Para 6 of instruction No.159 dated 10 April 1970. - Income Tax - 1176/CBDT

INSTRUCTION NO. 1176/CBDT Dated : May 16, 1978 Attention is invited to Boards instruction No.159 dated 16th April, 1970 (F.No.5/6/69-IT (Audit) and Instruction No.612, dated 7th Septmeber, 1973. 2. It has been stated in para 6 of instruction No.159 that whenever any irregularity or mistake is observed by a revenue audit party it issues an audit memo stating the objection in regard to the individual cases. The ITO should furnish a reply to the AUDIT memo with greatest expedition and in any case within 3 days of the date of its receipt. The instructions were reiterated in Instruction No.612. 3. It is seen from the proforma reports that in many cases either no reply has been sent to the audit memo or it has been sent after a long delay. In some cases it is seen that the reply given will be looked into or reply will be sent shortly. The receipt audit have also brought to the notice of the Board the problem of delay in sending replies to the audit memos. 4. It should be impressed upon all the officers that the instructions issued on this subject should be strictly followed. The audit memo should be promptly attended to. The facts and figures should either be accepted after checking or if scrutiny reveals any discrepancy, the same should be pointed out to the Audit without any loss of time. Failure to do so results in the objection being shown in the Local Audit Report and ultimately it is raised to the level of Draft para. A proper factual reply will help the audit also to settle many of the objections at the stage of audit memo itself.