CAG report on CAs

[vsaiyar]

December, 25th 2014
Coming down heavily on chartered accountants hired by the income tax department, a CAG report on Friday said their failure to submit correct tax information resulted in levying of lower taxes by as much as Rs 2,813.11 crore in 367 cases surveyed.
"We found cases where the CAs failed to report full and correct information in 367 cases leading to short levy of taxes of Rs 2,813.11 crore and where the Assessment Officers failed to utilise the information available in 102 reports or certificates submitted to them leading to short levy of taxes of Rs 1,310.05 crore," said the report of the official auditor.
"We also found in another 616 cases where CAs committed mistakes viz in allowance of exemption or deductions, charging of tax on book profit under Section 115JB, adoption of arm's length price and reporting on cash payments exceeding Rs 20,000 per day,"
The above comments by the CAG is not sufficient to correct the situation.  We should find the relationship of the selected CAs and the Higherups in the IT Department.  Like the appointments of Retainers in high Courts by the Department, herealso there is foulplay.  There is reluctance on the part of the CBDT and others to take action against erring Officials and hence the personnel administration of the IT Department should be entrusted to some Officials/authorities outside the Department.

[pawansingla]

HOW CAN DEPARTMENT TAKE ACTION AGAINST CA"S. THEY ARE THE PERSONS WHO ARE PROVIDING THEM EVERY LEGAL OR ILLEGAL FACILITIES IN ONE OR THE OTHER FORM.IT IS A DEEP ROOTED NEXUS WHICH IS VERY DIFFICULT TO BREAK.