The CBDT has issued Instruction No. 16/ 2013 dated 31.10.2013 in which it has noted that despite a comprehensive procedure prescribed earlier for action at different stages of Revenue Audit objections, settlement track record is unsatisfactory and remedial action is delayed. It is also pointed out that there is a need to provide that Internal Audit should normally precede Revenue Audit. The CBDT has, therefore, decided to fine tune the procedure and strengthen the role of supervisory authorities so that quick and effective remedial action can be taken to prevent loss of revenue.
CBDT Instruction No. 16/ 2013 dt 31.10.2013 on Revenue Audit objection procedure (2.6 MiB, 8,588 hits)
CBDT is only concentrating on the loss of revenue, but it should also consider the enormous problems faced by the taxpayers. Unnecessarily the time money and energy is wasted on the subject by the taxpayers and revenue and the professionals. This could be avoided if the revenue audit team is well equipped with law and accountancy prinicples.
problem today any education without real practical exposure if any acts naturally that action creates a lot of unnecessary problems, normally avoidable.
Today budding professionals – CAs or LL.Bs fall into this trap. That causes clients a lot of troubles that could be avoidable
Similar situation is in Revenue collecting officers like AOs as most are not really practically experienced in application of laws. Worst is in tax laws so many provided clauses are there that need to be really sensibly decoded, indeed ideation of some one else’s thoughts unless sensibly decoded we create more problems.
in Revenue matters, improperly decoded laws application unnecessarily affects assesses as also that of Revenue which is definitely related to public exchequer funds and any unnecessary legal or any other expenses causes a big dent on revenue . Even if you are flush with moneys still you cannot afford to waste moneys, more so that from that of public exchequer funds which are the hard eared moneys of assesses.
So high care is needed is my opinion please!
true. just jittery revenue audit will increase legal costs both to the Assessee as also Revenue. AOs jittery actions for any reasons cost the Revenue legal expenses besides that of Assessees.
concept of internal audit helps many AOs not to tread on slippery collections ideas.
several times AOs forget limitation aspects of tax laws after all tax laws are subject to Natural justice principles please which aspect many AOs as they are fresh with legal degrees that degree only causes problems to Revenue is my observation!