CBDT data on Tax Audits

ICAI has made a representation to CBDT seeking tax audit data based on returns e filled during the year 2010-11.The said data relating to number of tax audit conducted by the members along with the membership numbers of the tax auditors was provided to ICAI in Dec /Jan 2012.

While processing the data provided by the Income Tax Department, it was observed that a number of tax audits reports were filed by the assessees by quoting the fake membership details of the Chartered Accountants. The details facts of the data are as follows.

A) 696 membership numbers (1385 Tax Audit Conducted) quoted by the assessees in e returns do not subsist at all. Such Membership Numbers were never issued by ICAI.

B) 420 membership numbers belong to deceased members. Among the same 369 members passed away before 31stMarch 2011. The number of audits conducted by deceased members stood at 3621.Further 51 members passed away after 31st March 2011 and 2287 tax audits reports were uploaded in the name of 51 deceased members. Here benefit of doubt can be given that our worthy members have expired after signing such reports.

C) 2752 members have uploaded the tax audits more than the prescribed limit. Benefit of doubt can also be given because a partner can sign the tax audits reports on behalf of firm and many members may be there who have signed on behalf of their partners

D) 3 Chartered Accountants have uploaded more than 1000 tax audits in their names.

The data and its analysis have presented to council and the council has authorised a council member to initiate in the matter. In case of doubts letters shall be issued to members to clarify their position. Further action shall be initiated as and when data analysis shall be completed and verified from member concerned.