Remedial action on revenue audit objections raised by CAG

Posted on    18 March 2016

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Sub: Modification of Instruction No. 9/2006 dealing with remedial action on Revenue Audit Objections not accepted by the Department– reg.

The guidelines and procedure for attending to objections raised in the course of audit of assessment work by the Comptroller and Auditor General of India (Revenue Audit) are laid down in the Instruction No of 2006 issued by the Central Board of Direct Taxes. The Instruction inter-alia mandates the initiation of remedial action in case the Revenue Audit Objection is not accepted by the Department.

The Board has considered the effect of such remedial action and its ultimate fate in appeal and decided to modify the existing instruction for dealing with remedial action on Revenue Audit objections that are not accepted by the Department. A Circular (Circular No. 8/2016) has been issued on 17th March 2016 deleting para 4 and para 5 of the Instruction and replacing them with fresh guidelines and procedures for dealing with Revenue Audit objections.

The modified Instruction will avoid creation of un-collectible demand and reduce litigation with the assessee in such cases where the Department itself finds the Revenue Audit objection not acceptable. It is another step in the direction of a non-adversarial tax regime.

The Circular has been attached herewith

(Shefali Shah)
Pr. Commissioner of Income Tax
(Media and Technical Policy) and
Official Spokesperson, CBDT

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