December 20, 2017 2:35 AM

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CAG pulls up I-T deptt for not adopting uniform approach to deal with cases of fictitious donations

<br/>Comptroller and Auditor General (CAG) today pulled up Income Tax Department for not adopting a uniform approach to<br/>deal with cases of fictitious donations or bogus purchases causing revenue loss to the government.<br/><br/><br/>In its report tabled in Parliament today, CAG said the Assessment Officers(AOs) did not take cognisance of report of the investigation wing and failed to initiate necessary follow up actions by disallowing the amounts of the fictitious donations or bogus purchases, which resulted in the<br/>loss of revenue. <br/><br/>It also noted that AOs were allowing or disallowing<br/>amounts pertaining to bogus transactions arbitrarily, applying<br/>discretion that was not available to them. <br/>'<br/>It also highlighted the issue of exaggerated demands on certain corporate assessees like SBI, Bank of Baroda, Bank of India, IDBI Bank, HDFC, Kotak Mahindra Bank, Air India,<br/>Deposit Insurance and Credit Guarantee Ltd to achieve its revenue collection targets by resorting to methods that were<br/>irregular and unwarranted.

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