CAG slams Income Tax Settlement Commission
CAG wanted to audit the Income Tax Settlement Commission:
Despite the assurance given by the Commission, the Benches did not provide the individual application files and other related records. Consequently, audit could not ascertain/verify (i) the procedure followed for filing the applications, (ii) dates at various stages from filling of applications and their disposal, payment of tax etc. by applicants; and (iii) existence of internal control mechanism for monitoring of settlement cases.
The Ministry told the CAG that the proceedings before the Commission are quasi-judicial and are not open to audit which starts from the filing of application and ending with the passing of order of the settlement.
The Audit of course went ahead and found:-
"The Act has prescribed time frame for various stages from filing of applications till their settlement by the Commission and implementation of the orders thereof by the ITD. We have noticed considerable delay at various stages on the part of the Commission and the ITD. Even a number of applications filed prior to 1 June 2007 are still pending with the Commission for disposal. Besides, ITD took considerable time in submission of required reports to the Commission and giving effect to the orders of the Commission."
From CAG's Report No.3 of 2015.