Need for furnishing replies to draft paras within a period of six weeks from date of receipt of the para. - Income Tax - 1279/CBDT

INSTRUCTION NO. 1279/CBDT Dated : September 24, 1979 One of the points mentioned by the C AG in a meeting held between him and the then Minister of Finance on 8.9.78, was that since the Public Accounts Committee did not find time to discuss a large number of paras appearing in the Audit reports he was desirous of reducing the number of audit paras. This could be done if matters were discussed between the Audit and the executive at the appropriate level and remedial action taken at the draft para stage itself. The C AG sought the cooperation of the Ministries/Departments in this regard. In so far as the Income-tax Department is concerned, instructions already exist requiring the Commissioners and the officers at lower levels to discuss personally with the officers of the Audit Department so as to ensure prompt settlement of objections . In this connection, a reference is invited to para 6 and 7 of the Board's letter No.5/6/69-IT(Audit), dated 16.4.70 (Ins/No.159) and DI(IT A)'s Instruction No.58, dated 16.10.78 urging upon the income-tax authorities to discuss the audit objections with the officers of the C AG and settle the objections. 2. Later, in the meeting of Secretaries held on 16.7.79 to discuss and implement the minutes of the aforesaid meeting between the C AG and the then Minister of Finance it was decided that all Departments should follow the drill suggested by the C AG as early as in 1969 for ensuring meaningful discussion of the audit report in the PAC meeting. The C AG had in particular stressed the need for proper verification of facts at the earliest stage possible so that the Public Accounts Committee's time is not wasted in shifting through the facts which may be given differently by the Audit on the one hand and by the Ministry on the other at the time of the Public Accounts Committee meeting. The need for giving correct and complete facts at the earliest stage of the objections has also been stressed by the Board in para 5 of Board's Instruction No.340, dated 3.11.1971(F.No.5/6/69-IT(AUD) and in para 3(b)(iii) of Board's Instruction No.484 (F.No.246/76/72-A PAC-I), dated 12.12.1972. The matter was also dwelt upon in para 10 of the then Chairman's d.o. letter No.2/ML/CH/DT/73, dated 10.5.1973 addressed to the Commissioners. 3. Another matter which was also stressed in the meeting of the Secretaries was the need for furnishing replies to the draft paras within the stipulated period of six weeks from the date of receipt of the para. On this matter also, Board's Instructions quoted in para 1 above already exist. It has been stressed in these instructions that the draft paras usually are proposed in cases involving tax effect of more than Rs.10,000 and if utmost priority is given in dealing with them right from the audit memo stage then it would not be difficult when the proforma report is requisitioned, to furnish the same completed in all respects within a period of 3 weeks from the date of receipt of draft para by the Commissioner. In this connection, reference is invited to para 4-5 Board's Instruction No.340, dated 3.11.1971 referred to above.