Para 7.3.23 — MSO (Audit)
Original Rule Text
7.3.23 All cases of under-assessment and defects in procedure need not be individually mentioned in the Audit Report; however, cases involving substantial revenue as well as other important and interesting cases should be brought to the notice of the Parliament/Legislatures. Cases in respect of which Government have taken remedial measures to recover the amounts under assessed or to remedy the deficiencies pointed out by Audit may be included in the Report only if they highlight any defects in systems and procedures or the revenue implication in so far as the State Audit Reports on Revenue Receipts are concerned is more than Rupees one lakh.
What This Means
Not every under-assessment or procedural defect needs to be individually mentioned in the Audit Report. Only cases involving substantial revenue, important findings, or interesting features should be brought to Parliament or the Legislature's attention. Cases where the Government has already taken remedial action should generally be included only if they reveal systemic defects in procedures or (for State reports) involve revenue implications exceeding one lakh rupees.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Only cases involving substantial revenue or important features merit individual mention
- 2Routine or minor under-assessments need not appear individually in the Report
- 3Cases with government remedial action are included only if they highlight systemic defects
- 4For State Revenue Receipts reports, a threshold of Rs 1 lakh applies for remedied cases
- 5The focus should be on bringing significant matters to legislative attention
Practical Example
During GST audit, the team finds 200 cases of minor under-assessment (below Rs 50,000 each) and 5 cases exceeding Rs 10 lakh each. Only the 5 major cases are proposed for the Audit Report. One additional case where the department has already recovered the under-assessed amount is still included because it reveals a systemic flaw in the auto-assessment module that could affect thousands of taxpayers.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who decides what constitutes 'substantial revenue'?▼
Why include cases even after the government has taken corrective action?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.