CBDT modifies steps for dealing with remedial action on revenue audit objections
March, 18th 2016
The Central Board of Direct Taxes (CBDT) on Thursday decided to modify the existing instruction for dealing with remedial action on revenue audit objections that are not accepted by the income tax department.
In a circular issued on Thursday, the CBDT said that it has deleted paragraphs four and five of Instruction No. of 2006, which inter-alia mandates the initiation of remedial action in case the revenue audit objection.
The CBDT further said that it has considered the effect of such remedial action and its ultimate fate in appeal and replacing them with fresh guidelines and procedures for dealing with such objections.
It said in a statement that the modified instruction will avoid creation of un-collectible demand and reduce litigation with the assessee in such cases where the income tax department itself finds the revenue audit objection not acceptable.
It said that this is another step by the government in creating a non-adversarial tax regime.