No. K2-10044/95/TX. Office of the Board of Revenue (Taxes),

Thiruvananthapuram, Dt. 26..05..1995.

CIRCULAR No. 14/95

Sub:     Agricultural Income Tax and Sales Tax Department – Internal Audit – Review and follow up actions – certain instructions

Ref:    1. Board’s circular dated 25..05..1994..

          2. C6.4311/94/dtd. 22..02..1995 of the Inspecting Assistant

              Commissioner, (Audit), Ernakulam.

…..

The Inspecting Assistant Commissioners (Audit), have brought to the notice of the Board that the Sales Tax Officers (Audit) under their control have audited the assessment files of various offices that certain major irregularities involving huge loss of revenue have been unearthed and audit enquiries have been issued to the officers concerned for rectification of defects for revising the assessments in appropriate cases. The Inspecting Assistant Commissioners (Audit) have also reported that the Officers to whom the audit enquiry is issued have not taken adequate attention to the rectification of the defects pointed out by the internal audit party. On examination of certain cases Board also finds that their statement is correct as the Officers are least interested in examining the cases and also revising the assessments in appropriate cases. In this connection it has to be pointed out that unless the audit queries are answered then and there by taking timely action, the very purpose of audit will be defeated. Therefore, it is imperative that the concerned officers should feel themselves that this is an important duty of assignment cast on them as in the case of completion of assessments. The assessing officers are therefore directed that as and when the audit officers issue audit enquiries the concerned officer dealing with the files should examine the cases and take appropriate action within one month and should forward a rectification report to the Board through their controlling officers not later than 45 days from the date of receipt of the audit objection.

At present, the Deputy Commissioners in whose offices the Inspecting Assistant Commissioners (Audit) and Audit Officers are attached are not seen to have given adequate attention to this item of work. Had they given proper instructions in the course of their monthly conferences to the assessing officers, the slackness on the part of the Officers could have been averted to some extent. The Deputy Commissioners will see that the Officers under their control are properly guided and that earnest and timely action is pursued by their officers in the matter of rectification of defects pointed out by the internal audit party.

The Board would like to remind the officers that Board will not hesitate to take disciplinary action against the assessing officers who fail to take action on the audit notes pointed out by the internal audit party as and when it is brought to the notice of the Board.

The receipt of the circular should be acknowledged.

Sd/-

Deputy Commissioner

(Audit & Inspection)