AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
NEW INTERNAL AUDIT SYSTEM
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.... make equal distribution of the audit work in respect of cases assessed under the Corporate and non-Corporate Charges, Central Charges, DGIT (Int. Taxation) and DGlT (Exemption) to the two CsIT (Audit); ii. there shall be one CIT(Audit) in the non-metro charges under the direct administrative control & supervision of CCIT (CCA), who shall be responsible for audit work pertaining to all the cases in that jurisdiction; iii. the CCIT (CCA) would not delegate the administrative control & supervision over the CsIT (Audit) to any other CCIT; iv. the CsIT(Audit) would have their headquarters at the same station as that of the CCIT (CCA); v. under each CIT (Audit) there shall be one Addl. CIT, who would be responsible for Internal Audit of bigger cases as per the norms laid down herein below, and for the supervision of the audit work of the Special Audit Parties (SAPs) headed by Dy./Asst. CsIT and the Internal Audit Parties (lAPs) headed by the ITOs; vi. there shall be one SAP headed by Dy./Asst. CIT under each Addl. CIT (Audit), except at Guwahati, Lucknow, Nagpur and Kochi CCA charges where the APs will look after the functions of SAP; vii. there shall be one additional SAP headed ....
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....udit set-up for metros and non- metros are given at Annexure-I and II. The Station-wise Special Audit Parties/ Audit Parties/Internal Audit Parties are shown below. Sl. No. Station At CCIT (CCA) Hqrs At field Total SAP IAP IAP SAP IAP 1. Delhi 2+2 2 20 2+2 22 2. Mumbai 2+2 2 34 2+2 36 3. Kolkata 2 2 24 2 26 4. Siliguri 1 1 5. Durgapur 1 1 6. Burdwan 1 1 7. Asansol 1 1 8. Jalpai 1 1 9. Chennai 2 2 12 2 14 10. Coimbatore 3 3 11. Salem 1 1 12. Madurai 2 2 13. Pondichery 1 1 14. Trichy 2 2 15. Hyderabad 1 1 7 1 8 16. Vishakapatnam 2 2 17. Vijaywada 1 1 18. Guntur 1 1 19. Rajamundry 1 1 20. Tirupati 1 1 21. Patna 1 1 3 1 4 22. Ranchi 1 1 23. Dhanbad 1 1 24. Muzaffar....
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.... 1 1 83. Alwar 1 1 84. Jodhpur 2 2 85. Bikaner 1 1 86. Udaipur 1 1 87. Ajmer 1 1 88. Lucknow 1 2 1 3 89. Bareilly 1 1 90. Moradabad 1 1 91. Varanasi 1 1 92. Gorakhpur 1 1 93. Allahabad 1 1 94. Faizabad 1 1 95. Haldwani 1 1 96. Kanpur 1 1 3 1 4 97. Aligarh 1 1 98. Dehradum 1 1 99. Muzaffarnagar 1 1 100. Meerut 1 1 101. Ghaziabad 1 1 102. Agra 2 2 Total 22 22 250 22 272 III. Internal Audit - Auditable Cases: Norms and Targets i. The minimum number of cases to be audited by each Additional CIT, SAP or IAP in a year shall be as under: Additional CIT : 50 SAP : 300 IAP &....
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.... The normal stay in Audit Wing shall be two years; (v) ensure, in co-ordination with the NADT/RTIs and MSTUs, that appropriate training is imparted to the officers and staff posted in the Internal Audit Wing, every year after the AGT; (vi) ensure that CDs and Journals on Case Laws, Circulars, Notifications and Instructions, and the Commentaries on Tax Laws, are provided to the Add\. Jt. CsIT Ranges and the Assessing Officers, as also the CsIT (Audit), and are regularly updated; (vii) ensure that the norms for Internal Audit are followed I implemented, and targets thereof, as well as the targets for Receipt Audit, are achieved; (viii) ensure that the necessary reports and statistics are sent to the Board I Directorates and the AGs; 2. Role of jurisdictional CCIT/ DGIT: In case there is a difference of opinion between concerned CIT(Admn.) and CIT(Audit), the CCIT/ DGIT having administrative control over the CIT/DIT in whose charge an audit objection has been raised shall be the authority to decide whether an audit objection raised by an IAP is to be accepted or not. 3. Role of CslT (Audit): The CsIT (Audit) shall (i) have jurisd....
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.... the AGs. 4. Role of administrative CsITl DsIT: The administrative CsITl DslT shall: (i) extend all cooperation to the CIT(Audit) for preparation of the list of auditable cases, production of records/registers to the Internal Audit within the scheduled time frame, conduct of audit by the Internal Audit and settlement of Internal, as well as Receipt Audit, objections, and action to be taken against the officers/staff in respect of internal audit; (ii) ensure maintenance of the Ledger Cards and the Registers, manual as well as in electronic media, as per guidelines given in the Internal Audit Manual, 2003, as amended from time to time; (iii) prepare and send the necessary reports and statistics to the CIT (Audit); (iv) ensure that the list of auditable cases (category wise) of a particular month are sent to the CIT(Audit) concerned by the 10th of the following month; (v) ensure that the relevant records/registers are produced before the Internal Audit alongwith the list of auditable cases, and wherever records etc are not given to Internal Audit without adequate reasons, take suitable action against the officer/staff c....
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....p; assist the CIT (Audit) in ensuring proper maintenance of prescribed registers and timely submission of reports and statistics. 6. Role of Add.. CsIT/ JCsIT (Assessment Range): The Addl./Jt. CsIT (Assessment Range) shall, (i) ensure that remedial action is taken within the prescribed time limits, and shall facilitate prompt recovery of tax; (ii) ensure that records requisitioned by the IAP/SAP are made available expeditiously; ensure that objections; (iii) ensure timely submission of reports relevant to the Audit set up; (iv) ensure that cases selected for internal audit are audited by Internal audit before relevant case records are given to Receipt Audit. 7. Role of DlT(Audit) : The Director of Income Tax ( Audit ), through the DGIT (Admin.), shall continue to act as the field arm of the Board in respect of the Internal Audit functions of the Department. The functions of the DIT (Audit) shall, inter alia, include, (i) preparation of the National Action Plan Targets for Internal Audit Wing, both for Internal and Receipt Audit, for consideration of the Board for its inclusion in the Annual Central Action Plan; (i....
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....nvolving revenue below the limits prescribed in (a) above, the Commissioners should ensure that the Addl./Jt. Cs.I.T Ranges issue similar instructions to the AOs within the said period of one month; and, (iii) the choice of such remedial action, whether under section 154 or 147 or 263, should be carefully considered in the light of existing legal provisions and its sustainability in appeal. VI. Remedial action: (i) An Audit objection should be accepted and remedial action should be taken in a case where the audit objection relating to an error of facts or an issue of law is found to be correct; (ii) Even if objection is not accepted by the CIT, remedial action should be initiated, as a precautionary measure, in respect of such audit objections pending final settlement with the CIT(Audit)/the decision of the CCIT concerned, except where (a) the CIT is of the view that the interpretation of fact or law by the Internal Audit is in conflict with a decision of the Supreme Court and the decision squarely applies to the facts of the case, or (b) the CIT is of the view that the interpretation of fact or law by the Internal Audit is in c....
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....icer, but such directions are not taken into account at the time of calculation of tax, interest and surcharge; (b) where there is totaling mistake in the computation of income; (c) where an income disclosed in the return is not included in the computation in the assessment order, except where the assessing officer has discussed in the body of assessment order and directed not to include it; (d) where there is wrong calculation of tax including application of wrong rate of tax; (e) where there is wrong calculation of interest including application of wrong rate of interest or wrong calculation of period for which interest is leviable; (f) where any income is added in the computation of income more than once; (g) Where wrong set off of brought forward losses, unabsorbed depreciation, loss on long! short term capital gain etc. in the scrutiny/search assessments, not commented by the assessing officer in the assessment order, has been allowed; (h) where wrong verification of, or failure to verify, the arrear demand before the issue of refund results in wrongful issue of refund; (i) ....