Audit objections with respect to 'Assessment of small scale industrial undertakings'.

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..... ich clearly indicate that the provisions under Chapter VI-A of the Income-tax Act are either not being applied at all, or are being applied incorrectly by Assessing Officers without verifying whether the conditions laid down under the respective provisions of law are fulfilled or not. Some such objections are summarised below:- (i) The Assessing Officers do not obtain/check any authentic record .....

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..... in Forms 10CC and 10CCB, certifying the correctness of accounts, are not insisted upon, as is required under sections 80HHA and 80HHC, respectively. (vii) While working out permissible deductions, the Assessing Officers adopt the gross income shown by the assessees, which includes sales tax, central excise duty, etc., that has been collected and also stand reflected in the statements of account. .....

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..... s, which is alarming. 3. Necessary instructions may be issued to the Assessing Officers working in your region to acquaint themselves with the legal provisions, as clarified from time-to-time through legal pronouncements and Board's instructions and circulars, before they allow any deduction under Chapter VI-A while computing the taxable income of the assessees. - Circular - Trade Notice - Pub .....

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