Exemption from section 35(5): departments and local authorities audited by CAG or appointed auditors are excluded. Insertion of a proviso to section 35(5) excludes departments of the Central Government, State Governments and local authorities from that sub section where their books of account are subject to audit by the Comptroller and Auditor General of India or by an auditor appointed under law to audit local authorities, thereby creating an audit based exemption from the sub section's application.