Lack of coordination between Audit and Judicial sections. - Income Tax - 1496/CBDT

INSTRUCTION NO. 1496/CBDT Dated: December 21, 1982 In a case appearing at para 51(a) of the Audit Report 1970, while examining the AAC's order, in C.I.T.'s office the advice of the Ministry of Law sent to the C.I.T. in connection with the audit objection in the same case was not considered and the AAC's order which was against the advice given by the MOL was accepted. There was thus a lack of co-ordination between the Audit Section and Judical section of the C.I.T's Office. The Board therefore is of the view that co-ordination can be better achieved if the ITO while sending his scrutiny report on the adverse appellate orders also reports the fact of the audit objection which gave rise to the order appealed against. Similarly, while examining the AAC/CIT (Appeals) Tribunal's order, judicials section of the CIT's office should find out from the IAC (Audit), if the order in appeal was passed in pursuance of any audit objection and whether it was proposed as a Draft para and or appeared in the printed Audit Report. 2. These instructions may be brought to the notice of the officers working under your charge.