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Put in place foolproof IT system, control mechanism to check assessment errors: CAG to CBDT

Put in place foolproof IT system, control mechanism to check assessment errors: CAG to CBDT

Pointing out significant errors and irregularities in Corporation Tax assessments, apex auditor CAG on Tuesday asked the Central Board of Direct Taxes (CBDT) to put in place a foolproof IT system and internal control mechanism to avoid such recurrences. Comptroller and Auditor General of India (CAG), in a report tabled in Parliament, audited 356 high value cases pertaining to Corporation Tax with tax effect of Rs 12,476.53 crore.

"These cases mainly pertained to arithmetical errors in computation of income and tax, errors in levy of interest, irregularities in allowing depreciation/business losses/capital losses, irregular exemptions/ deductions/ rebates/ relief/MAT credit, incorrect allowance of business expenditure, income not assessed/under assessed under normal provisions, etc," it said.

Out of 356 high value cases, CAG has illustrated 38 instances of significant errors/irregularities in Corporation Tax assessments involving tax effect of Rs 3,976.56 crore.

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