Audit and adjudication – Board dislikes Dichotomy
As per Board’s instructions, whenever AG’s Audit raises an objection, Show Cause Notice has to be issued to protect revenue. In all fairness, Board had never even suggested that these Show Cause Notices are to be adjudicated in favour of Revenue. But over enthusiastic Revenue officers who have made a profession of pro-revenue orders go out of their way to adjudicate a case in favour of revenue in tune with the Audit objection. However when they reply to Audit, they strongly challenge Audit’s objection and explain in no uncertain terms that Audit’s objection is not tenable. However Audit is informed that protective Show Cause Notices are issued. What is more if an appellate authority quashes the adjudication order based on the Audit objection, the department religiously pursues the cause in further appeals. In this classic dichotomy, the department would be pursuing two contradictory stands before the Audit and judiciary. Is this fair and legal? Fortunately Board does not think so!
In a recent communication to Commissioners, Board laments that this is not only improper but does not also behove well for credibility and so such actions are not good for a healthy, fair & credible tax administration.
Wah Board Wah!
It’s a long time since Board had issued instructions to the field to be objective, fair and reasonable. Let’s hope this would spur the field to be fair.