AUDIT BY CAG

This query is : Resolved

Quick Summary

This discussion explores whether the Comptroller and Auditor General (CAG) can audit income tax returns processed by the Central Processing Centre (CPC). While government departments are generally subject to CAG audits, the specific query concerns whether CPC-processed returns fall within the scope when an audit focuses on a jurisdictional assessing officer's work. The consensus suggests that CPC-processed returns are indeed covered by CAG audits, irrespective of the primary audit focus.

PARAS CHHAJED

PARAS CHHAJED

(Querist)
Follow

03 July 2024 Is a return of income processed by CPC u/s 143(1) subject to audit by CAG while auditing the assessments made by the Jurisdiction Assessing Officer?

The audit party carries out audit of assessments made by the Assessing Officer to check if there is any leakage of revenue.

Facts : a return of income of a company was filed well within the due date and the same was processed by CPC with no demand no refund. There has not been a scrutiny assessment against this return. While carrying out audit at the office of the jurisdictional assessing officer. A scrutiny assessment of a return of succeeding year was done by JAO and while audit of that assessment the audit party found that there has been an amalgamation of another company in the preceding year in terms of approved scheme and shares were allotted to the shareholders of the amalgamating company. The audit objection is with reference to valuation of shares.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 July 2024 Yes, it's subject to CAG audit.
All government departments and Government undertaking are subject to CAG audit. Income tax is one of the central government department.

PARAS CHHAJED

PARAS CHHAJED

(Querist)
Follow

04 July 2024 I do agree that the government departments are subject to audit by CAG. (Article 148 of the constitution of India)

All scrutiny assessments are subject to audit by CAG. My query is with respect to scope of audit. What I wanted to know is whether the returns processed by CPC are also subject to audit while carrying out audit of the records of the jurisdictional assessing Officer. Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 July 2024 Yes, it's also covered not limited they can choose.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now