Reward files be made available to receipt audit. - Income Tax - 1855/1990

INSTRUCTION NO. 1855/1990 Dated: september 5, 1990 The Board has received a reference seeking instructions as to whether files regarding cases where payments of rewards were made to informants, should be made available to Receipt Audit parties for the purpose of audit. It has been pointed out that if the rewards files are subjected to audit, the informants may be dissuaded from furnishing information regarding tax evasion, as their security would be endangered. 2. The Board has been informed that in addition to the information file, which contains the name and address of the informants and the details of the information furnished by him, a reward file is opened for each case. This reward file contains a gist of the information provided by the informants and also a note regarding the further assistance rendered by him. This file also contains the evaluation of information with reference to the amount added in the assessments and the taxes realised, for which purpose a report is obtained from the Assessing Officer, and the order of the Competent Authority on payment of rewards. This file does not contain the name and address of the informants. 3. The Board has, therefore, decided that the purpose of the Receipt Audit would be served if only the reward files are made available to the Receipt Audit. In addition, statistical data maintained vide Reward Register prescribed at para 8.02 (iii) of Chapter VIII of the Search Audit. 4. This may be brought to the notice of all officers in your region.