The C&AG conducted performance audit of Recovery of Arrears of
Tax Demand of the Income Tax Department and the report Number 23 of 2011-12 was
laid on the table of the Lok Sabha/Rajya Sabha on 16-12-2011. In the report, the C&AG has identified
weakening of certain control mechanism and non-adherence by the field formation
to prescribed procedures in some cases and make observations/recommendations to
further improve internal control mechanism and to monitor the recovery of
Income Tax Arrears more effectively. The
observations/recommendations of the C&AG and the response of the Ministry
thereto are included in the above-mentioned report of the C&AG.
The amount of certified demand left uncollected for the year 2009-10
and 2010-11 is as under: (as on 31.03-2011)
|
Year
|
No. of certificates
|
No. of defaulters
|
Amount (Rs. Lakhs)
|
|
2009-10
|
19,162
|
14,891
|
81,04,083
|
|
2010-11
|
22,025
|
15,489
|
5,35,123
|
Raising of demand
and recovery of taxes is a continuous process which is affected by many factors
due to which arrears are accumulated.
Some of the factors which lead to pendency of arrears are non-traceable
assesses, assesses with inadequate or nil assets, assesses notified under
Special Court (Trial
of offences relating to transaction in securities) Act, 1992, cases before
BIFR, companies in liquidation etc. The
position of uncollected tax dues is monitored on regular basis in each case and
the possibilities of collection are constantly evaluated. Cases of large demand (Rs.10 crores and above) are also monitored at the level of CBDT
on quarterly basis.
This information was given by the Minister of State
for Finance, Shri S.S. Palanimanickam in written
reply to a question in Lok Sabha
today.
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DSM/SS/Hb