INCOME TAX

REVISION OF INSTRUCTION NO.9/2006 ON RECEIPT/REVENUE AUDIT OBJECTIONS.

INSTRUCTION NO.16/2013

DATED 31-10-2013

Reference is invited to Board's Instruction No. 9 of 2006 dated 7.11.2006 on Receipt/Revenue Audit Objections (hereinafter Instruction). It is a matter of concern that despite a comprehensive procedure prescribed through the Instruction for action at different stages of Audit Objections, settlement track record is unsatisfactory and remedial action is delayed. There is also a need to provide that Internal Audit should normally precede Revenue Audit. It has, therefore, been decided to fine tune the procedure and strengthen the role of supervisory authorities and CIT (Audit) as detailed below:

Role of CCIT (CCA) /CCIT/DGIT:

Role of Administrative CslT/DsIT:

Role of CIT (Audit):

3. In supersession of the monetary limits specified in para 3.2(a) and 7.2 of Instruction and adopting a consistent approach with C&AG, the definition of Major audit objection, for the purposes of Revenue Audit, is henceforth revised as one where the revenue effect is Rs. 2,00,000 or more for the purposes of Corporation Tax and Income tax .

4. The phrase "CIT (Audit) in Metropolitan charges" as occurring in para 7.1(b) and (c) of Instruction should be construed as 'CIT (Audit) concerned'.

5. Instruction no. 9 of 2006 is amended and supplemented with effect from November 15, 2013 to the extent indicated above.

6. This may be brought to the notice of all officers working under your jurisdiction for compliance.

[F.NO.246/95/2013-A&PAC-I]

Annexure I