Audit Reports

The depreciation worked out at the rates prescribed under the Companies Act, 1956 is debited to the Profit and Loss account of a company to determine the true profit or loss of the business or the true cost of production etc. and ultimately is available for replacement of capital assets. It has......

Company Ltd., for AY 10, at loss of 239.39 crore after disallowing depreciation of 12.49 crore claimed on capital subsidy / grant received on account of fixed assets. The assessee filed revised depreciation statements for AY 09, showing closing WDV at 231.33 crore and accordingly the......

The condition for allowing such deduction is that such deficiency is actually written off in the books of account. 32(2) In case of inadequate profit or loss any depreciation which could not be fully allowed for want of profit, the amount which could not be given full effect of shall be......

for the AY 10, had claimed and was allowed deduction of 144.45 crore on account of amortisation cost under Section 35ABB in respect of fixed licence fees. 37 Report No. 20 of 2014 (Performance Audit) This included amortised cost of f 34.23 crore in respect of licence fee off 684.59 crore......

year Section 44 AB of the Act requires the assessee to furnish Tax Audit Report (TAR) in Form No 3CD vide Rule 6G(2) of Income Tax Rules, 1962 by an accountant along with the return of income. Further, Clause 14(d) of TAR requires the assessee to furnish the details of additions to/deletions from......

Summary of Recommendations vii D. Chapter 1: Introduction 1-5 D.l Introduction 1 D.2 Organizational set up 1-2 D.3 Revenue forgone on account of accelerated depreciation 2-3 D.3 Why we chose the topic 3 D.4 Audit Objectives 3 D.5 Audit scope and sample size 4 E. Chapter II: Systemic issues......

with schedule of receipts received from banks to get delayed remittances which constitute default by hanks (Para 4.5.3 of the Manual of Accounting Procedure, Part 1- General). Thus, DCBR is an important control register and is required to be maintained properly. Test check of records......

Report No. 32 of 2013 r \ Chapter-V: Maintenance of Subscribers9 Accounts V_) 5.1 Maintenance of Accounts The Manual of Accounting Procedure provides for system of accounts prescribed under the EPF Scheme for......

has been more than its expenditure on running of schemes. (Paragraph 2.1.3) The balance in the ‘Interest Suspense Account’ increased consistently from X 12445.29 crore in March 2007 to X 22461.15 crore in March 2011. (Paragraph 2.3) The EPFO did not follow prescribed pattern of......

Scheme, 1952; Employees’ Deposit Linked Insurance Scheme, 1976; Employees’ Pension Scheme 1995; Manuals of EPFO such as Manuals on Accounting Procedure, Inspector Manual, Recovery Manual; Rules and regulation of Government of India including General Financial Rules, 2005;......

Also, EPFO was not found to be very encouraging towards voluntary coverage of its schemes. The Interest Suspense Account balance was not a true reflection of sums available for distribution as interest to subscribers, in the absence of updation of about 38.74 lakh subscribers’ accounts......

b. In Tamil Nadu CIT-V Chennai charge for the AY 11 in the case of M/s. Price Waterhouse & Co., a firm of Chartered Accountants, AO allowed salary of Partners amounting to f 1.25 crore as claimed by the assessee. We noticed that the remuneration was authorized with effect from 01 April......

that the assessee had shown total amount of 9.62 crore received towards lorry freight, hire charges and commission in the Income & Expenditure Accounts although assessee had actually received a total amount of 20.01 crore for the same during the year. Hence, the amount of 10.39 crore......

The columns like 'Code No.', 'Nature of Disposal' etc. were not included in the Register. Scrutiny of Personal Deposit (PD), Account Cash Book, PD Ledger Account and the correspondence folder revealed that the monthly balance statement from the bank was not obtained and reconciled with the......

Firms claimed excess exemption under section 10(2A) of the Act and no interest was charged on the withdrawals/debit balances in the Partners' capital account (paragraphs 2.3 - 2.8) We further noticed in 227 cases having a tax effect of? 65.72 crore wherein ITD had allowed (a) expenditure on......

Tax Department ITO Income Tax Officer ITR Income Tax Return JCIT Joint Commissioner of Income Tax LLP Limited Liability Partnership PAN Permanent Account Number TCS Tax Collection at Source TDS Tax Deducted at Source TRO Tax Recovery Officer 49......

of ASI and NCF Projects Date of Total Contribution Balance in S Name of the Project Signing of Purpose of MoU Project Sponsor Committed by Sponsor Account as on Project Status No. Project MoU Amount till 31.3.12 31.3.12 (' in lakhs) (' In lakh) (' In lakh) 1. Humayun's 16.4.1999 Conservation,......

(Para 6.2.3) Proper maintenance of the accession register was essential to correctly account for the Museum objects and also for their safety. However, systematic Executive Summary maintenance of the accession register was largely absent in the museums. We observed significant discrepancies......

As a result, expenditure on this account was incurred from the funds allotted for conservation activities. The ASI did not prepare comprehensive plans for providing basic amenities at the monuments. As a result, most of the monuments were found lacking in these facilities, as highlighted in......

management including adequacy of funds for conservation projects, utilisation of funds, revenue generation, remittance of revenue in Government account and accounting thereof. 1.3.2 Sources of Audit Criteria The performance of the ASI was evaluated with reference to the criteria derived......

The lab was to check the quality of stone prior to use in works. We noticed that ' 1.35 crore was incurred on account of stone flooring in the campus during 2007-08 to 2011-12. However the quality of the stones used was not checked in the stone conservation laboratory. 50 Performance Audit of......

Fatehpur Sikri, Agra Circle Agra Circle incurred an expenditure of 7.45 lakh up to 2005-06 on account of conservation of a Mint House at Fatehpur Sikri against the sanctioned cost of ^ 15.72 lakh. Conservation work was not carried out in accordance with the norms. The work was declared......

and Conservation of Monuments and Antiquities Report No.18 of 2013 Recommendation 9.3: There should be a security plan for each monument, taking into account its location, area, structure, footfall and other vulnerabilities. This exercise should be performed in house by the ASI to ensure coverage......

undisclosed income of the specified previous year. 271B Failure to get the accounts audited u/s 44AB Half per cent of the 1,00,000 or furnish such information as required u/s total sales turn over 44AB. or gross sales. 271BA Failure to submit the report u/s 92E 1,00,000 - 271C Failure to......

The Ministry needs to ensure instituting a more robust mechanism for identifying cases for prosecution which takes into account timeliness; quantum of tax evasion; and contemporary impact. 7. CBDT should ensure posting of a designated and experienced Nodal officer to handle......

Management Information System MOP Manual of Procedures MPR Monthly Progress Report NLP National Litigation Policy PA Performance Audit PAN Permanent Account Number QPR Quarterly Progress Report TCS Tax Collected at Source TDS Tax Deducted at Source 80......

The Council should ensure the placement of annual budget, annual report and annual accounts before the statutory authorities for approval and adoption. The annual plan of action needs to be approved by the GB. The Council should devise a suitable mechanism to evaluate effectiveness......

point accountability. 4 Accepted. The GOI should expedite rationalisation of the cost structure of foodgrains in the context of levy of statutory and non- statutory charges imposed by different States in view of heavy subsidy payout. 5 The GOI/FCI should take a strategic Accepted to......

Report No. 7 of 2013 Chapter III Storage Management | Status of storage capacity for the Central Pool The primary policy objective of the GOI is to ensure food security in the country through timely and efficient procurement, and distribution of...

3.1: Illustrative Case In Maharashtra, DIT-E, Mumbai, Jamshetji Tata Trust and Navajbai Ratan Tata Trust earned 1,905 crore and T 1,234 crore on account of capital gain during AY 09 and AY 10 respectively and invested the same in prohibited mode of investments which is in contravention to the......

then in order to reflect the true income available for application of charitable purposes, it should write back the depreciation amount in the account to form part of its income. Otherwise such notional claim becomes unaccounted cash surplus for the assessee outside its books of accounts.......

to the 799 Trusts without verifying necessary documents such as copy of the Trust Deed, proper clauses in the Trust Deed, audited accounts etc. Grant of approval/registration without adequate documents 2.3 Income Tax Rule (Rule) 17A(a) provides that Trust should produce the......

entities and the return filed. There can be no correlation before number of regd. entities and number of returns received on account of the above position. As regards delayed returns, the same is a normal phenomenon and also permitted under the Act. It carries consequence of levy of interest......

Tax Officer ITR-7 Income Tax Return (For Trusts) MHA Ministry of Home Affairs NGO Non Government Organization PA Performance Audit PAN Permanent Account Number PAC Public Accounts Committee TDS Tax Deducted at Source Trust Charitable Trust/Institution VOs Voluntary Organizations 56......

Prasanta Banerjee, PAN-AECPB7012 ITS revealed that assessee deposited cash of? 189.66 crore and 41 lakh in his saving bank accounts. Assessee denied the deposit of? 189.66 crore. The Bank confirmed the assessee’s contention stating that mistake occurred due to error in AIR filed by them.......

Transaction Statements MIPPRA Multi Interactive Phonetic Patter Recognition Algorithm NSDL National Securities Depository Limited OLTAS On-line Tax Accounting Software PAN Permanent Account Number RCC Regional Computer Centre RRR Return Receipt Register TAN Tax Deduction and Collection Account......

company/ Time deposit exceeding 2,00,000 with a banking financial institutions company 4 004 Post Office A deposits exceeding? 2,00,000 in any account with Post Office saving bank 5 005 Hotels and Payment to hotels and restaurants against their bills for Restaurants an amount exceeding ?......

In case of non-SEGF states, funds are released to MGNREGS account maintained in a districtthrough concerned Chief Executive Officer of District Rural Development Agency. In case of states where SEGF has been established, funds are released to bank account ofthis fund maintained at state......

The lapse calls for fixing accountability on the erring officials. The state-wise details aregiven in the Annex-7B. 54 Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme Chapter 7 - Employment Generation and Payment of Wages The Ministry stated that it had......

It was also seen that Bihar, Maharashtra and Uttar Pradesh, which together account for 46 per cent of the rural poor, utilised only about 20 per cent of the Central Scheme funds. This indicated that the correlation between poverty levels and implementation of MGNREGA was not very high. As......

at different levels for estimating the likely demand for work, and preparing shelf of projects, were adequate and effective; Funds were released, accounted for and utilised by the Central and state governments in compliance with the provisions of the Act and other extant rules; Process of......

The rules, inter alia, may determine the arrangements for proper implementation of the Scheme, for ensuring transparency and accountability, terms and conditions of payment of unemployment allowance, setting up the state councils, the grievance redressal mechanism, and mannerof maintaining......

of Dumka district, two job cards were issued to one person (Head of family) and wages earned on both job cards were found credited to a single account of post office. In Arsandey GP of West Singhbhum district, two job cards were issued to a single household in three cases and wages of......

of at least 15.03 crore persondays in Andhra Pradesh, Assam, Jharkhand, Madhya Pradesh, Sikkim, Tripura and Uttarakhand (seven states) on this account. The state-wise details are given in Annex-8A and case study. The Ministry stated that wage material ratio of 60:40 will now be considered......

v_/ The Ministry stated that the annual plan was prepared based on the projection of demand, which may be on the higher side, to take into account all potential employment seekers. The shelf of projects prepared on the basis of annual plan does not suggest that all the projects need to be......

Report No. 6 of 2013 The reply does not take into account the requirement of Operational Guidelines of MGNREGS that 60:40 ratio between wage and material on total funds available under MGNREGS and MMSY/BRGF were maintained and ban on contractors was ensured. In Uttar Pradesh, 178.69 crore......

In addition, there are also increased demands for accountability and transparency in the execution of the programme by various stakeholders. The Act and the Operational Guidelines envisage a multipronged and extensive system of internal and external monitoring mechanisms at all levels......

Report No. 6 of 2013 The reply does not take into account the requirement of Operational Guidelines of MGNREGS that 60:40 ratio between wage and material on total funds available under MGNREGS and MMSY/BRGF were maintained and ban on contractors was ensured. In Uttar Pradesh, 178.69 crore......