TaxTMI 
TaxTMI 
Proper utilization of information contained in the audit report submitted u/s. 44AB of the Income-tax Act, 1961.
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....Act, 1961-Regarding. The C & AG has commented upon the administration of section 44AB of the Income-tax Act, 1961, in the audit report for the year ended 31st March, 1996, No. 12 of 1997. In para 3.2 of the report, the C & AG has made a number of observations on the lapses committed by the Department in ensuring that assesses comply with these provisions and the proper utilization of the inform....
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.... or returns u/s. 143(1)(a) of the Act, the assessing officer may invariably check whether the assessee is required to submit an audit report u/s. 44AB. (ii) In all cases of delay in furnishing of an audit report or failure to furnish the same, the assessing officer should immediately initiate proceedings for penalty u/s. 271B. The supervisory authorities may examine each quarter the number of c....
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....es claimed as in admissible by an assessee and as per the audit report. (vi) All cases where the information provided in the audit report is incomplete or such non-commital replies are furnished so as to render the remarks or the report meaningless should be reported by the assessing officer to the CIT. The matter thereafter, be taken up by the CIT to see if the case reflects any professional n....
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.... income. (ix) The CIT in their supervisory capacity may conduct a review of the assessments completed in the last three years by the assessing officer under them to check whether all possible additions to income have been made on the basis of the information in the audit report and a report of the review be sent to the Board by each CCIT/DGIT w.r.t. their region. These aspects must also be kept....