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TMI BlogNEW INTERNAL AUDIT SYSTEMX X X X Extracts X X X X X X X X Extracts X X X X ..... The CClT (CCA) shall make equal distribution of the audit work in respect of cases assessed under the Corporate and non-Corporate Charges, Central Charges, DGIT (Int. Taxation) and DGlT (Exemption) to the two CsIT (Audit); ii. there shall be one CIT(Audit) in the non-metro charges under the direct administrative control supervision of CCIT (CCA), who shall be responsible for audit work pertaining to all the cases in that jurisdiction; iii. the CCIT (CCA) would not delegate the administrative control supervision over the CsIT (Audit) to any other CCIT; iv. the CsIT(Audit) would have their headquarters at the same station as that of the CCIT (CCA); v. under each CIT (Audit) there shall be one Addl. CIT, who would be responsible for Internal Audit of bigger cases as per the norms laid down herein below, and for the supervision of the audit work of the Special Audit Parties (SAPs) headed by Dy./Asst. CsIT and the Internal Audit Parties (lAPs) headed by the ITOs; vi. there shall be one SAP headed by Dy./Asst. CIT under each Addl. CIT (Audit), except at Guwahati, Lucknow, Nagpur and Kochi CCA charges where the APs will look after the functions of SAP; vii. there shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly sanctioned posts of 22 CsIT (Audit), 22 Additional CsIT (Audit), 22 Dy/ ACIT (SAP), 88 ITOs, 176 ITIs, 66 PAs/Stenographers, 176 Sr TAs/ T As for the Internal Audit Wing. The hierarchy chart of Internal Audit set-up for metros and non- metros are given at Annexure-I and II. The Station-wise Special Audit Parties/ Audit Parties/Internal Audit Parties are shown below. Sl. No. Station At CCIT (CCA) Hqrs At field Total SAP IAP IAP SAP IAP 1. Delhi 2+2 2 20 2+2 22 2. Mumbai 2+2 2 34 2+2 36 3. Kolkata 2 2 24 2 26 4. Siliguri 1 1 5. Durgapur 1 1 6. Burdwan 1 1 7. Asansol 1 1 8. Jalpai 1 1 9. Chennai 2 2 12 2 14 10. Coimbatore 3 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 2 52. Ujjain 1 1 53. Indore 2 2 54. Gwalior 1 1 55. Pune 1 1 6 1 7 56. Thane 4 4 57. Nasik 2 2 58. Aurangabad 1 1 59. Kolhapur 2 2 60. Nagpur 1 5 1 6 61. Guwahati 1 2 1 3 62. Shillong 1 1 63. Dibrugharh 1 1 64. Jorahat 1 1 65. Chandigarh 1 1 2 1 3 66. Patiala 1 1 67. Shimla 1 1 68. Panchkula 1 1 69. Bhatinda 1 1 70. Amritsar 2 2 71. Jalandhar 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l draw an Action Plan for the year accordingly. iii. The norms of auditable cases for Internal Audit shall be as laid down hereunder: iv. The audit of returns processed summarily on AST may not be required. v. In respect of search and seizure cases, audit of the core search assessments shall be made. vi. In respect of the audit of non-core search and seizure cases, the criteria for non-search assessments shall apply. vii. For the purpose of audit of search seizure assessments, the Appraisal reports shall be shown to SAP or IAP if so requisitioned. viii. While preparing the basket of auditable cases for SAP or IAP, it shall be ensured that at least top 100 cases of the charge are included in the basket. The remaining cases may be a representative mix of cases selected for scrutiny (a) under CASS, (b) based on AIR inputs, (c) by approval of CCIT, and (d) cases of delayed refunds including defaults in granting interest. ix. CCIT (CCA) may relax the norms for audit by Additional CIT, SAP and/or IAP so as to ensure that number of auditable cases is not less than the number of cases to be audited by each as per target laid down in sub-para (i) above. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T/DsIT for preparation of the lists of auditable cases, timely production of records/registers to the Internal/Receipt Audit teams within the scheduled time frame, smooth conduct of audit and settlement of Internal, as well as Receipt Audit, objections, and action to be taken against officers 1 staff in respect of Internal Audit; (v) maintain the Ledger Cards and the Registers in respect of Internal/Receipt Audit as per guidelines given in the Internal Audit Manual, 2003, as amended from time to time, and ensure that these are maintained by the administrative CsIT; (vi) draw action plan for Internal Audit for the year in consultation with CCITI DGIT concerned with the approval of the CCIT(CCA); (vii) ensure that the norms for Internal Audit are followed/implemented, and targets thereof, as well as the targets for Receipt Audit, are achieved; (viii) ensure that the internal audit of the auditable cases of a particular month are completed within 30 days, and the records/registers received with the list of auditable cases are handed over to the Addl. Jt. CIT Range/the Assessing Officers within one week thereafter; (ix) ensure that the audit objection memos are sent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the internal audit memos; (viii) settle, with the CIT (Audit) concerned, the major internal audit objections having tax effect above Rs.1,00,000/- in IT/CT and Rs.30,000/- in Other Taxes, and ensure that the Addl./Jt. CIT Range settles the internal audit objections involving tax effect below these limits with the Addl. CIT (Audit), within 4 months of the receipt of the Internal Audit memos; (ix) in a case where there is dispute between the administrative CIT and the CIT (Audit) with regard to the settlement of the internal audit objection, and/or the remedial action (x) taken, the administrative CIT shall report the matter, with full facts and reasons, to his/her jurisdictional CCIT, who shall take up the matter with the CIT(Audit), and the decision of the CCIT shall be final. 5. Role of Additional CsIT (Audit): The Addl./ Jt. CsIT(Audit) shall, (i) have audit jurisdiction over cases pertaining to jurisdiction of CsIT assigned to him; (ii) have administrative control and supervision over the working of IAPs and SAPs functioning under him; (iii) ensure the effective functioning of the IAPs and SAPs; (iv) submit monthly report to CIT (Audit) with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detected by Revenue Audit and Internal Audit. (vii) coordination with CIT(Audit) and Administrative CIT regarding maintenance of Ledger Cards, and Registers, in respect of both the Internal Audit and Receipt Audit; (viii) preparation of updated Check Sheet for Internal Audit, to be incorporated in the software subsequently and to be revised/updated every 3 years, and its circulation to the CCs(CCA)/ CsIT(Audit); (ix) conduct Seminars /Workshops every year for the officers/staff posted in the Internal Audit Wing in co-ordination with the CCs(CCA)/CsIT(Audit), and ensure that similar training programmes are organized by the CCs(CCA)/CsIT(Audit) every year ; (x) devise necessary reporting mechanism, and to prescribe the forms and registers in consultation with DIT(Systems) and DOMS; (xi) prepare Annual Report of Internal Audit Functions of the Department, incorporating the highlights gathered through Inspections and Performance Audit, and submit the Annual Report to the Board by 30th June every year. V. Timely and appropriate action: With regard to remedial action on the internal audit objections, (i) in respect of audit objections involving revenue of Rs.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Audit objection, involving revenue of Rs. 1,00,000/- or more in Income-tax/Corporate Tax and Rs. 30,000/-or more in other Direct Taxes, have been accepted, or the mistakes, inter alia, arise from anyone or more of the following reasons: (a) failure to follow departmental instructions/circulars; (b) failure to follow binding judicial decisions; and; (c) palpable mistakes on fact or law, or mistakes arising from gross negligence or malafide action. ii. Besides, explanation of the officer and staff concerned should be obtained, (a) in a case of default in adhering to the time limit prescribed or other defaults in complying with requirements mentioned in para IV. (b) where failure to take timely and appropriate remedial action in respect of objections raised by Internal Audit leads to irretrievable loss of revenue. iii. Further, in cases of objections involving arithmetical inaccuracy in calculation or computation, the accountability of the dealing staff, besides that of the assessing officer, cannot be over-emphasized. Hence, if the mistake is, inter alia. on account of anyone or more of the following reasons, the explanation of the staff responsible for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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