Reference of cases of film producers and artists for special audit u/s 142(2A). - Income Tax - 1770/CBDT

INSTRUCTION NO. 1770/CBDT Dated: August 19, 1987 Reference is invited to the Board's Instruction No.1415 dated 27.9.81 by which the Board impressed upon the officers to refer more and more cases for special audit u/s 142(2A) of the Income-tax Act which required intensive investigation. It further reiterated the need for investigative audit u/s 142(2A) particularly in the cases of film artists and other such persons who are obliged to keep and maintain accounts and other documents in the manner provided in section 44A of the Act. The Public Accounts Committee in its 71st Report (1986-87) desired that the powers of compulsory audit of accounts conferred u/s 142(2A) ibid be made use of in all cases where necessary. The Committee noted with regret that upto the end of March, 1985 only one case of film producer in Bombay was referred for compulsory audit. The Committee are of definite view that the aforementioned provision, if invoked from time to time in the cases of established film producers and artists, would go a long way in unaccounted income. 2. The Board wish to once again impress upon all the assessing Officers to refer more cases of established film producers and artists requiring audit, having regard to the nature and complexity of the assessee and in the interest of revenue. 3. The contents of this instruction may be brought to the notice of all the officers working under you.