Summary Assessment Scheme-Audit. - Income Tax - 1316/CBDT

INSTRUCTION NO. 1316/CBDT Dated: March 5, 1980 Attention is invited to the Board's Instruction No.483 (F.No.244/7/72-A PAC) dated 4.12.1972 wherein it was stated that the records of assessments completed under Summary Assessment Scheme may be made available to Receipt Audit when called for. 2. After discussions between the Board and the Receipt Audit, it has been agreed that audit of the assessments completed under Summary Assessment Scheme will be conducted in the following manner :- (i) To see whether the case was one that has been rightly disposed of under the Summary Assessment Scheme in the light of Board's Instruction No. 966 dated 6.7.76 and Instruction No.1072 dated 1.7.77, as long as these instructions are in operation; (ii) To see whether statutory adjustments, as provided under section 143(1), have been made. Cases where there are clear mistakes in making such requisite adjustments, objections will be raised by Audit and may be included in the Audit Report., Remedial action should be taken in such cases and reported to Audit. (iii) There may be cases where there are no mistakes as such in the assessments completed under section 143(1). However, some extraneous material has been furnished by Audit indicating under-assessment. In such cases if the Department replies that the assessment has been reopened to assess the escaped income, Audit will be satisfied and the case will not be included in the Audit Report. Remedial action should be taken in such cases and reported to Audit. (iv) Where according to Audit, a systematic abuse of a concession by a group of assessees is involved in the assessments completed under the Summary Assessment Scheme, Audit will bring this to the notice of the Board. It may involve debatable issues. It is for Board to consider whether there is such an abuse or lacuna.