9911796707
TMI BlogInternal audit set-up.X X X X Extracts X X X X X X X X Extracts X X X X ..... e image of the Department stand out better. In this connection reference is invited to the observations relevant to audit in the Chairman's circular D.O. letter No.8/ML/Ch.DT/72 dated 14-11-1972 to the Commissioners of Incometax. 2. Administrative Steps: Detailed instructions about internal audit set-up and the procedure relevant thereto will follow separately. As regards revenue audit it will be seen from the Board's above noted letter No.F. 66/83/72-Ad.VII dated 6.12.1972, that inter alia the following important steps have been taken for strengthening the administrative machinery for handling this important item of work:- (a) The Charge Commissioners will hereafter have audit as one of their top important overall responsibilities ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernal audit work has been shifted from them to the new ITO (Internal Audit); this leaves the Chief Auditors in all charges with the work of handling revenue audit matters as their main task and they should, therefore, be able to ensure proper functioning in this field. 5. Procedure: As regards the procedure for handling revenue audit objections it may be pointed out that in the last PAC meeting there was severe criticism about the lack of promptness and care in dealing with such objections at various stages by the Department. This slackness and indifference in such a significant area has persisted inspite of repeated instructions from the Board detailing proper steps to be taken and emphasising the need for strict vigil in this behalf. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s) The procedure and time limits laid down for dealing with the revenue audit objections at the level of the assessing ITO/IAC(Audit) and Commissioners laid down in the Board's Instructions No.159 F5/6/69-IT(Audit) dated 16.4.70 should be strictly followed right from the initial stages of audit parties, half margin Memos to the ITOs. on to the intimation by AG to the CIT about the former's intention to send proposed draft para to the C AG on a particular case. Thereafter, the following stages of processing should be followed:- (i) As indicated in the Board's letter No. F-9/1/68-IT(Audit) dated 1.8.1969 as supplemented by the DI(IT)'s letter No. M-35/18/70/DIT dated 28.10.72, the CIT should collect and compile, on receipt of the AG's afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he information furnished in these reports respectively to the Board and D.I(IT) is full and factually correct and there is no occasion later for challenge to these facts, or for doubt and modification; the Board will take a very serious view of any lapse in this regard. There has to be an alert and imaginative scrutiny of these audit paras at senior levels for proper exposition and requisite action instead of routine indifferent treatment. (iii) On getting the above first mentioned report from the CIT, the Board will inform the C AG inter alia about acceptance or rejection of the audit objections and endorse copy to the CIT/DI(IT). On receipt of this endorsement the DI(IT) will move ahead his preparation of the comprehensive Brief-cum-pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... according to the foregoing sub-paras by 31.3.1973. Copies of Board's communication to the C. A.G. accepting/resisting the draft audit paras, will be sent by the Board to the D.I.(IT) ; copies of draft paras have already been made over to him by the Board. (c) Draft Paras (General and Statistical): What has been stated in the foregoing sub-paras (a) and (b) applies to audit paras relating to individual cases. The paras relating to general and statistical matters will be handled in the Board's office, on receipt of the draft paras/Audit Report and in consultation with Cs.I.T. and D.I.s who should furnish required information and comments with utmost accuracy and expedition. 4. The duties of IAC (Audit) and Chief Auditor prescribed in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
