GOVERNMENT OF INDIA

MINISTRY OF FINANCE
PRINCIPAL CHIEF CONTROLLER OF ACCOUNTS
CENTRAL BOARD OF DIRECT TAXES
DEPARTMENT OF REVENUE
LOK NAYAK BHAWAN, KHAN MARKET,
NEW DELHI-03

ANNUAL REVIEW ON THE PERFORMANCE

OF
INTERNAL AUDIT

FOR THE FINANCIAL YEAR 2018-19

1
 CONTENTS

Sl. No. Subject Page No.

1. Preface 3
CHAPTER-1
2. Executive Summary 3
3. Performance of Internal Audit during the financial year 2018-19 4-5
4. An overview of major findings of Internal Audit during the year 2018-19 5
5. Sanctioned and working strength of Internal Audit Wing as on 1st April of the financial 6
year under report.
6. Total number of units and their periodicity. 6
7. Targets and achievements
- In terms of units audited (other than Banks/Schemes/Grantee Institutions) 6
- In terms of Schemes audited
- In terms of Banks/Grantee institutions audited 7
8. Status of outstanding Audit Paras. 7
9. Initiatives taken for settlement of the outstanding Audit Paras. 7-8
10. Expectations from Management 9
11. New initiatives. 10-11
CHAPTER-II
12 Summary Report of Paras shown in Chapter-III 12
CHAPTER-III
13. List of Important Irregularities (including Schemes/Banks/PSUs/Grantee Institutions)
Cases of non recovery of govt. dues from Central Govt. 13
Cases of over payment. 13-16
Cases of idle machinery/surplus stores. 16
Cases of loss/infructuous stores. 17
Cases of irregular expenditure. 17-19
Cases of irregular purchase. 19-20
Cases of non adjustment of advances:-
i.) Contingent Advance 20
ii.) Travelling Advance 21
iii.) Leave Travel concession Advances 22
iv.) Long term advances. 22
Cases of blocking of Govt. Money 23
Cases of non-accountal of costly stores 23
Any other items of special nature. 23
CHAPTER-IV
14. Strategy/approach adopted for conducted the Risk Based Audit 24
List of auditable units under Ministry/Department and their periodicity 24
List of Schemes with status of audit conducted during the year 24
List of autonomous bodies/PSUs/Grantee Institutions with Status of Audit conducted 25
during the year.
List of Banks with status of Audit conducted during the year. 25
CHAPTER-V
15. Quantifying of outcome of Internal Audit in terms of actual recoveries made during the 26
financial year.
CHAPTER-VI
16. Brief on efforts made for capacity building/training undertaken by officers/staff in
various aspects of Internal Audit. 27
- List of courses with officers trained in Internal Audit during the year.
17. Acronyms used in Annual Review 2018-19 28

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 PREFACE
Annual Review is the report regarding annual performance in the audit for the
last financial year. This office has taken the target of 456 units for audit and
successfully completed the audit of 198 units and sent the report to concerned auditee
units well in stipulated time. The audit wing of this office had done its job very
well/satisfactory, despite a few numbers of staffs. The internal audit wing will
perform better if proper training will be provided to the staffs/officials for updating
their knowledge regarding audit.
CHAPTER-1
Executive Summary

Introduction of Ministry/Department i.e. their vision, mission and

activities.

The Central Board of Direct Taxes is a nodal agency for collecting Direct
Taxes. The officials of the Board in their ex-officio capacity also function, as a
Division of the Ministry/dealing with matters relating to levy and collection of Direct
Taxes.
The Principal Chief Controller of Accounts (Pr. CCA) is the apex authority of
accounting organization of the Central Board of Direct Taxes. Under the
Departmentalized set up, the Pr. CCA, CBDT has been assigned the functions relating
to accounting of all receipts and refunds pertaining to the Direct Taxes, the
expenditure relating to Income Tax Department and conducting internal audit for the
Income Tax Department, its attached offices and the Banks engaged in direct tax
work.
Pr. CCA, CBDT also oversees and monitors the overall banking
operations in regard to collection and refund of direct taxes and their reconciliation
and remittance collection, accounting remittance and reconciliation of direct taxes.
The Pr. CCA, CBDT has 52 Zonal Accounts Offices (ZAO) all over
the country to discharge the aforesaid responsibilities.

The main functions O/o of Pr. CCAs are as under :-

i) Payment functions for all the Commissionerate’s / Directorates through

conducting internal audit of CBDT at Headquarters, Division and Range level.
Similarly, Internal Audit/inspection of nominated/accredited banks engaged in
collection/payment under indirect tax mechanism is also conducted.
ii) Payment functions for all the Commissionerate’s / Directorates through the
Zonal Accounts Offices and delegated Cheque Drawing DDOs located at
various places.
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 iii) Accounting of both expenditure and revenue for each Commissionerate /
Directorate on monthly basis and final consolidation of accounts for the entire
department through principal accounts office at HQ.
iv) Preparation of Annual Appropriation and Finance Accounts for the Department.
v) Conducting Internal Audit of all CDDOs and DDOs of Department of CBDT.
vi) Rendering financial and technical advice to the CBDT on the matters relating to
collection, accounting and proper head wise classification of indirect taxes.

Performance of Internal Audit during the year 2018-19

Out of the 1370 units, there were 735 units under the purview of audit during
the financial year 2018-19, on the basis of concerned IAPs (depending upon
periodicity whether Annual, Biennial and Triennial). There has been a rapid growth in
the number of administrative units, consequent upon restructuring of the Income Tax
Department. However, on the other hand, the number of IAPs and the associated
working strength has reduced. IAP had taken 456 as Target for audit during the
financial year 2018-19. On account of this and other administrative reasons, only 198
units (43.42 % of total target units) could be audited in 2018-19 with a short fall of
258 units. The shortfall in the number of units audited was due to acute shortage of
staff in the Internal Audit Wing, non-readiness of the auditee units and non-
availability of Budget in DTE head.
No scheme running under the ministry/department public sector undertaking
guarantee institutions bank etc.

Duties entrusted to the Internal Audit

The duties of Internal Audit Organization, set up for the field
formations under the Central Board Of Direct Taxes are laid down in as per
Manual of Internal Audit organization of Pr. Chief Controller Of Accounts,
which are as follows :-
i) Study of the accounting procedures adopted by the department with a
view to ensure that they are correct, adequate and free from any defects
or lacunae in the system.
ii) Watch over the implementation of the prescribed procedures and the
orders issued from time to time.
iii) Scrutiny and check of payment and accounting work in the accounting
units.
iv) Investigation of important areas in accounting and other connected
records.
v) Co ordinate with Ministries, Controller General Of Accounts and
Ministry of Finance regarding internal audit procedures.
vi) Periodical review of all accounts records.

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 vii) Pursuance/settlement of objections taken in test audit notes issued by
statutory audit offices and other matters relating to statutory audit.

 Objective and Scope of Audit

i) To ensure compliance of GFR.

ii) To ensure compliance of Service Rules & Related Matters.
iii) To safeguard the interest of Govt. & ensure value of money.
iv) Checking of all the purchase files, annual maintenance files etc.
v) Checking of budget/expenditure and other related register / records
vi) Checking of all the bills including LTC/TA bills and other personal
claims, concerned registers and other related records.
vii) Checking of Pay Bill registers for the financial year 2018-19 and the
payments of pay and allowance to the employees as per rules.
viii) Checking of Income Tax calculations and deduction of TDS.
ix) Checking of proper maintenance of Service Books & Pay Fixation.
x) Checking of Cash Book.

 Conclusion

This Internal Audit has been conducted with traditional method of audit to
assure the organization that the systems put in place are effective and helping to
accomplish the objective of the organization.
During the period it has been found that Govt rules & regulations on financial
matters and service rules on service matters have been followed. There are few
compliance nature of shortcomings noticed in the maintenance of account records
and the observation made by the audit is with the view that the organization will
rectify the shortcoming. The audit team has also suggested some corrective steps to
be taken by the organization for better management of fund and office procedure.
During the period Internal audit of four auditee units have been successfully
completed within the time period due to cooperation of auditee organization.

An overview of Major Findings of Internal Audit during the year 2018-19

Internal Audit Inspection is conducted by way of “on-the-spot” verification

with a view to ensure that the initial records are maintained by the DDO / Executive
officers properly, Rules, Regulations & Instructions issued by the Govt. of India from
time to time are complied with, uniform procedures are adopted in the matter of
payment and accounting, corrective measures wherever necessary, are initiated
promptly and qualitative improvement is brought out. The Internal Audit also
investigates the area of economy for appropriated action and
also provides feedback on the accounting formation of the Ministry as an aid to
management function.

Detailed list attached at Chapter-II

5
Sanctioned and working strength of Internal Audit Wing as on 1st April of
the Financial Year under report:

Category Sanctioned strength In position

Group ‘A’ There is no defined 1
Group ‘B’ (Gaz. & Non- sanctioned and working 58
Gaz.) strength.
Group ‘C’ (Acctt., LDC, 11
MTS)
Consultant engaged, if any Nil
from the empanelled list

Total Number of units and their periodicity

Periodicity No. of units

Annual 415
Biennial 173
Triennial 782
Total 1370

Target and achievements in terms of Units audited (Other than

Banks/Schemes/Grantee institutions).

Units due for Target for Units actually Arrear, if Reasons for
audit during audit of units audited during any arrears
the year during the year the year
711 432 184 248 Acute shortage of man
power & delay in
approval of tour
programme,
unavailability of
Budget in DTE head
sometimes non-
readiness of auditee
units.

Target and achievements in terms of Schemes audited

Units due for Target for Units actually Arrear, if any Reasons for
audit during audit of units audited during arrears
the year during the year the year
-----Not applicable for this office-----

6
Target and achievements in terms of Banks/Grantee institutions audited

Units due for Target for Units actually Arrear, if any Reasons for
audit during audit of units audited during arrears
the year during the year the year
Bank as a whole
Audit (pan India
Basis) was
24 24 14 10 conducted by the
O/o Pr.CCA,
CBDT.
Shortage of
well-trained
resources in data
analysis software
tool/IDEA &
delay in
approval of tour
programme.

Status of outstanding Audit Paras

Nature of Para Number of paras No. of paras No. of paras Number of paras
outstanding at the settled raised during outstanding at the
beginning of the during the the year end of the year
year year
Internal Audit 17179 6462 1674 12391
Paras
Statutory Audit 41 05 00 36
Paras
CGA’s Audit 56 00 30 86
Paras (in
Pr.AO/PAO)

Initiatives taken for settlement of the outstanding Audit Paras

A major Step was taken by the Principal Chief Controller of Accounts, CBDT,
to clear the arrears by restructuring the Internal Audit. All the 52 ZAOs were directed
to form a Party on rotational basis for Internal Audit of all the DDOs/Banks/Personal
Deposit Accounts under their jurisdiction.
For initiating time bound action plan for settlement of outstanding Internal
Audit Paras. The issue of large number of outstanding audit paras was brought to the
notice of Chairman, CBDT during the interaction with Principal Chief Controller of
Accounts, CBDT.
Accordingly, it has been decided to constitute two Standing Audit Committees,
one at Apex level and another at Regional level with the following
constituents/mandate:-

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 I. Standing Audit Committee (Apex Level):
(i) Composition:-
(a)Chairman - Chairman, CBDT
(b) Member – Pr.CCA, CBDT
(c) Member - Pr.CCIT/Pr. DGIT (Concerned Zone)
(d)Member Secretary – Controller of Accounts/Internal Audit, CBDT.
(ii) Mandate/Jurisdiction :–

Policy matters, New areas of auditing, Common audit

objections,
One year old audit objections which have not been
resolved at Regional Audit committees etc.
(iii) Periodicity : –
Half Yearly
II. Standing Audit Committee (Regional Level):
(i) Composition:-
(a)Chairman - Pr.CCIT/Pr. DGIT (concerned zone)
(b)Member – Representative of O/o Pr.CCA, CBDT
(c)Member – Regional Controller, CBDT/ZAO concerned
(ii) Mandate/Jurisdiction: – Review of outstanding Audit Paras, seeking
inputs from concerned offices and final settlement of audit paras.

(iii) Periodicity: – Quarterly

Accordingly, all stake holders have been requested to convene the

Standing Audit Committee Meetings for early settlement of audit paras.
With result of this our organization conducted various workshops to
liquidation of paras. Regular reminders in this regard have been issued to all
respective DDOs for strict compliance. Further to early liquidation of old outstanding
audit paras workshops have been organized at various Reginal Controllers offices in
which DDOs are sensitized in details by the representative of this office. Camps will
also be scheduled in coming periods to settle the old outstanding paras on the spot.

Expectation from Management

Absence of sufficient trained staff in the outstation field units and low priority
accorded to accurate accounting of receipts and expenditure seems to be the principal
reasons for the shortfall in achieving targets. At the instance of Internal Audit,
essential records which were not being maintained are now being maintained in some
of the offices which have been audited by IAPs. Following remedial measures are
often suggested: -

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1. Raising the level of DDO: -
It has been noted that DDO function is being
performed at very low-level officials such as Inspectors / Tax Assistants /
Data Entry Operator etc. Many a times they are not found to be sensitive to
the criticality of the role of DDO.

2. Appropriate training to be imparted to DDO: -

DDO function has undergone tremendous
change in the wake of new developments such as PFMS (Public Financial
management System), Bhavishya, NPS (New Pension Scheme) &
ETBAF (Electronic TDS Book Adjustment Form) EIS (Employee
Information System), NTRP (Non-Tax Revenue Portal) CDDOs
(Cheque Drawing and Disbursing Officer) module GeM (Government
e-MarketPlace). In view of above, it is crucial to impart training to
DDOs.

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 New Initiatives
Bank Audit as a Whole-

Bank Audit as a whole (for all CBDT Physical and E- challan collected
centrally at Link Cell or Head Office of the Bank and comparative study of all Put
Through Data provided by RBI in the format RCM-41 Statement No. 6) is a new
initiative under the kind guidance of Sh. G P Gupta, Pr. CCA CBDT. In this new
approach Audit of whole CBDT data pan India basis of a particular Bank is being
conducted by a single audit party which can be supplemented with specific Bank
branch audit. In this new approach the expenditure incurred to send various parties is
significantly reduced as only one to two parties can audit the whole bank data of
specific bank in place of 40-50 parties. This new approach also reduces the
expenditure incurred for TA/DA of IAPs for auditing FPBs of respective Banks at
various location of country. Moreover, the pendency of auditing all the Banking
organization for audit will be reduced as the same party can cover more Focal Point
Branches (FPBs) of Banks at one shot.

For making this initiative successful IAW(HQ) has conducted IDEA Training
based on CAAT audit techniques. Training of IDEA software on challan data of
CBDT receipts has been delivered by officials posted at IAW(HQ), New Delhi.

Training of audit of CBDT Challan for the collection of Tax by the authorized
bank in respect of Government of India on 20 th and 21st June 2018 (10:00 AM to
05:30 PM) was conducted at INGAF, New Delhi. Training under the supervision of
Higher authorities. The basis of this training was Data Analysis Technique applied on
data provided by the bank in specific format, the data then is incorporated in IDEA
Data Analysis Software for further scrutiny by the audit team.

There were 17 participants from different Zonal Accounts Offices, the IDEA
training was delivered by five officials, the requirement of 5 trainers is meant to
ensure hands-on training to all the participants. During training, participants learned
how to incorporate data (in .txt, .xls, .pdf file format) into IDEA Software for further
scrutiny of entire bank data regarding CBDT collection.

Another training was scheduled at INGAF Scheduled date of Training: From

29th Oct, 2018 to 02nd Nov, 2018 (10:00 AM to 05:30 PM). There were 20 participants
from six Zonal Accounts Offices, namely Chennai, Jaipur, Kolkata, Mumbai, Pune,
HQ, New Delhi, the IDEA training was delivered by five officials.

As per the direction of PCCA, CBDT 6 audit parties (IAPs) specialized for
Bank Audit as a whole is trained and deployed in their respective locations for
applying all India basis audit approach pertaining to Bank Audit, so that the coverage
of audit in different Banking organization can be increased.

10
Constraints while applying Bank Audit as a whole approach:
1. Huge volume of data is an inherent constraint in so far as capacity of the
software and Laptop used is limited to some extent. Audit Team was
required to incorporate the whole DMS data on monthly basis so that the
data can be smoothly incorporated in IDEA software. Audit Team also
needed to incorporate the same data multiple times each time due to large
volume of data as it got corrupted some times. DMS data is approximately
stored in Hard Drive Disk (HDD) measuring in Giga Bytes (GBs) so, it is
difficult for Bank organization to provide the data via e-mail, hence, there
should be a mechanism in Bank to furnish the data for audit in authentic as
well as integrated manner.
2. The data provided by the HQ Govt. Business Module Section, has been
obtained from the data available at the Link Cell (at Nagpur) or Head
Office of the Banking Organizations hence it is difficult to spot any
irregularities in challan data collected at the branch but not been reported
through Put Through unless the data is compared with the data collected at
FPB level (if the FPB has direct information from the branches under
concerned FPB).

Risk Based Internal Audit (RBIA) Technique required to be learned to the officials
working under Internal Audit Section of the office of Pr. CCA, CBDT to improve the
performance of Internal Audit Wing.

11
 CHAPTER-II

Summary report of paras shown in chapter-III

(Including Schemes/Banks/PSUs/Grantee Institutions)

A summary of paras in which important irregularities were noticed and total amount
involved therein are shown in the following table:

Sl. Nature of irregularities No. of Total amount involved

No. paras (Rs. In Lakh)
1. Cases of non-recovery of Govt. dues from 22 46.01
Central Govt. Depatments/State Govt./Govt.
Bodies/Private parties.
2. Cases of over payment 60 126.06
3. Cases of Idle machinery/surplus stores 0 0
4. Cases of Loss/ Infructuous Expenditure 0 0
5. Cases of Irregular Expenditure 41 1198.72
6. Cases of Irregular Purchase 24 201.94
7. Cases of non-adjustment of advances-
Contingency Advance-
Travelling Advance - 26 520.66
LTC Advance-
Long term advances-
8. Cases of Blocking of Govt. money 0 0
9. Cases of Non-accountal of costly stores/Govt. 2 8.19
money
10. Any other items of Special nature 2 815.72
TOTAL 177 2917.30

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 CHAPTER-III
List of important irregularities (Amount not less than Rs. One lakh)

The details of individual irregularities are explained in brief under each

heading (quantified wherever possible) and the total of the individual items under a
heading tally with the consolidated amounts indicated against the particular headings
in Chapter-2. Acronyms are not be used:

1. Cases of non-recovery of Government Dues from Central Govt.

Departments / State Govt./Govt. bodies/private parties.

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
1 JCIT,Rourkela 4.1,4.2,4.8 2.80 Short deduction P.Tax/L.Fees/I.Tax
2 ITO,Jharsuguda 4.1, 4.2 3.15 Short deduction P.Tax/I.Tax
3 ITO, Bargarh 4.4 1.55 Short deduction I.Tax
4 ITO, Bolangir 4.1,4.4 1.20 Short deduction P.Tax/ I.Tax/L.Fee
DDO, O/o
Pr.CIT, Income Short deduction of income tax
5
Tax Office, in issue of Form 16.
Muzaffarnagar 2 1.07
01 of 2013-
6 CIT, Gorakhpur 2.45 Non deposit of service tax
15
DGIT, (I&CI), Non deposit of Service tax to
7 N. Delhi 02 of 2016-17 7.50 Govt. Account by the M/s. J.B.
(Allahabad) Securities.
8 Pr. CIT-1, 19,20 of 3.68 Less recovery of income tax
Chennai 2015-18 etc.
9 Pr. CIT-4, 25 of 2015-18 1.58 Non recovery of CGHS,
Chennai
10 CIT (DR), ITAT, 12 of 2016-18 19.71 short recovery of Income tax
Chennai etc.
11 Pr. CIT – 1, 5,6,7,8, 11, 19 1.32 Short recovery of licence fee,
Bengaluru & 21 of 2016- E.L encashment not taken for
18 IT calculation etc.

TOTAL 46.01

2. Cases of Over Payment.

Sl. Name of office Para No. Amount Details of para in brief

No of in Rs.
. Report Lakhs
AO/DDO-9
Aaykar Bhawan,Dakshin2,Gariahat Over Payment due to wrong Pay
1 Road(South), Kolkata-68 1 5.48 fixation
DDO Code-257876

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 AO/DDO-7 Over Payment due to wrong Pay
Aayakar Bhawan, P-7,
fixation
2 Chowringhee Square, Kolkata-69 1 1.10
DDO Code- 257859

AO/DDO-6 Over Payment due to wrong Pay

Aayakar Bhawan,
3 1 2.05 fixation
P-7, Chowringhee Square, Kol-69.
DDO Code-257866
AO/DDO-4 Over Payment due to wrong Pay
AayakarBhawan, P-7,
4 1 2.21 fixation
Chowringhee Square, Kol-69.
DDO Code-257857
AO/DDO-1 Over Payment due to wrong Pay
AayakarBhawan,
5 1 5.98 fixation
P-7, ChowringheeSqare, Kol-69.
DDO Code – 257854
AO/DDO-3 Over Payment due to wrong Pay
AayakarBhawan,
6 1 4.11 fixation
P-7, Chowringhee Square, Kol-69.
DDO Code-257856
AO/DDO-14 Over Payment due to wrong Pay
3, Govt. Place (W), Ground Floor,
7 1 2.83 fixation
Kolkata-1.
DDO Code- 257867
AO/DDO-13 Over Payment due to wrong Pay
8 3, Govt. Place (West), Kol-1. 1 1.28 fixation
DDO Code- 257890
AO/DDO-16 Over Payment due to wrong Pay
3, Govt. Place(West), Ground Floor,
9 1 3.70 fixation
Kolkata-1.
DDO Code- 257868
AO/DDO-17 Over Payment due to wrong Pay
Uttarapan Complex, Manicktala
fixation
10 Civil Centre, Ultadanga, 1 3.60
Kolkata-54
DDO Code-257875
AO/DDO-22 Over Payment due to wrong Pay
AaykarBhavan, P-7, Chowranghee
11 1 1.07 fixation
Square, Kolkata-69.
DDO Code-257858
AO, DIT (Inv.), Over Payment due to wrong Pay
AayakarBhawan Annex,
12 1 5.02 fixation
P-13, Chowringhee Sq., Kol-69.
DDO Code- 257925
AO, CIT(C), Kol. Over Payment due to wrong Pay
AaykarBhawan (Poorva),
13 1 2.46 fixation
110, Shantipally.
DDO Code- 257927
AO (Inv.) Hqrs. Kol. Over Payment due to wrong Pay
AayakarBhawan, 3rd floor,
14 1 3.44 fixation
P-7, Chowringhee Sq., Kolkata-69.
DDO Code- 257924
AO, R-I(C) to IV(C), Kol. Over Payment due to wrong Pay
AaykarBhawan(Poorva) 110,
15 1 1.58 fixation
Shantipally.
DDO Code- 257926
06 of
Wrong fixation of Pay on
16 ITO Bihar Sharif MoF 3.63
promotion of ITI
02/18-19
17 ITO, Bargarh 4.2,4.3 1.77 Over Payment LTC/CEA / TTA
4.2,4.3,4.
18 ITO,Dhenkanal 2.88 Over Payment CEA/LTC/PAY
5
19 ADIT(Inv.), Sambalpur 4.4 2.55 Over Payment TTA/TA/LTC/pay

20 ITO,Jharsuguda 4.3,4.5 1.25 Over Payment Pay/LTC

21 JCIT,Rourkela 4.5,4.6 3.44 Over Payment TTA/TA/LTC
Over Payment due to Grant of Spl.
22 ADIT(Inv.), Dehradun 1 4.22 Allowance pay of Gr. A officer

14
 Over payment of salary & Allowances
01 of
23 Pr.CIT Varanasi
2013-16
1.84 due to on account of wrong pay
fixation of Sh. Sameer Srivastava, ITI

Unauthorised payment of Air fare

02 of procured from Pvt. Agent/Pvt. Airlines
24 PCIT Allahabad
2014-17
2.22
during 4tour made to Sh. Feroz Khan
PCIT
09 of Unauthorised payment of LTC to NE
25 DGIT(I&CI), New Delhi
2016-17
1.81
region to Sh Lajpat Rai ,ITO etc
Unauthorised payment of LTC to
02 of
26 CE(Val.) New Delhi
2016-17
1.44 Trivandrum in lieu of Home Town to
Sh. D.K.BAxi,CE(VAL.) etc
Unauthorize payment on a/c of bonus
to outsourcing of manpower by M/s
27 Pr.CIT, Gurgoan 4.3 5.00
Alankit

Excess payment on a/c of special

28 DIT, O&MS, Delhi 4.3 1.48
pay ( Hq allowance)
Over payment of leave salary
29 DDO Rg. 12(1), Mumbai 4 1.62
during HPL/EOL
Over payment of leave salary
30 DDO Rg. 1(1), Mumbai 4 2.69
during HPL/EOL
DDO Rg. 27(1), Vashi, Over payment of salary due to
31 5 1.29
Navi MUMBAI wrong pay fixation

O/o CIT
32 (Appeals) 3 3.51 Over Payment of Service Tax
Kochi
33 CIT, I&CI Intelligence, 4 1.50 Over Payment of TA
Kochi
Over Payment of electricity
34 CIT KOTTAYAM I 2.16
charges
Pr. CIT (Central-2), 2 of Excess drawal of
35 2.50
Chennai 2014-18 pay/HRA/Bonus etc.
CIT (International 13 of Excess drawal of
36 1.49
Taxation), Chennai 2014-18 pay/HRA/Bonus/LTC etc.
28,31 of
37 Pr. DIT(Inv), Chennai 2.86 Excess drawal of pay etc.
2015-18

28 of Excess drawal of
38 Pr.CIT-8, Chennai 1.39
2015-18 pay/HRA/Bonus/LTC etc.

Pr. CIT (Central-1), 46 of Excess drawal of

39 1.26
Chennai 2016-18 pay/HRA/Bonus/LTC etc.
CIT (Admin & TPS), 1 of Inadmissible Transport
40 1.72
Chennai 2016-18 allowance, Excess LTC claim

12 of Excess drawal of
41 DIT, (I&CI), Chennai 1.53
2015-18 pay/HRA/Bonus/LTC etc.
42 Pr.CIT-7, Chennai 7 of 1.15 Excess drawal of
15
 2015-18 pay/HRA/Bonus/LTC etc
10 of Excess drawal of
43 Pr.CIT-4, Chennai 1.28
2015-18 pay/HRA/Bonus/LTC etc
13 of Excess drawal of
44 CIT(DR),ITAT, Chennai 1.23
2016-18 pay/HRA/Bonus/LTC etc

1,2,3 of Excess drawal of

45 CIT,(Audit-2), Chennai 7.47
2014-18 pay/HRA/Bonus/LTC etc

30 of Excess drawal of
46 Pr.CIT-6, Chennai 1.17
2016-18 pay/HRA/Bonus/LTC etc

CIT (Exemptions), 1 & 2 of

47 2.98 Incorrect Pay fixations.
Bengaluru 2016-18

1,2,3 & 4
Excess drawal of
48 Pr. CIT – 1, Bengaluru of 2016- 2.72
pay/HRA/Bonus/LTC etc.
18

DDIT (INV.), 1 of
49 2.05 Excess payment of Transfer TA
Vijayawada, 2015-18

3 of
50 DCIT (C) Vijaywada, 1.05 Excess payment of Transfer TA
2006-18

Total 126.06

3. Cases of Idle Machinery & Surplus Stores.

Amount
Sl. Para No. of
Name of office in Rs. Details of para in brief
No. Report
Lakhs
-----NIL------

16
 4. Cases of Loss/ Infructous Expenditure

Amount
Sl. Para No. of
Name of office in Rs. Details of para in brief
No. Report
Lakhs
-----NIL------

5. Cases of Irregular expenditure

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
Purchase without
1 ITO,Bargarh formation of LPC
4.5 1.26 (Contingent items)
Purchase without
2 ITO, Dhenkanal approval of competent
4.4 1.59 authority (Computer)
3 JCIT, R-1, Patna 01 of MoF/01/ Splitting of Expenditure
18-19 4.05
4 ITO Bihar Sharif 02 of MoF/02/ Splitting of Expenditure
18-19 2.06
ADIT, 01 of MoF/03/
5 Splitting of Expenditure
Muzaffarpur 18-19 1.38
6 CIT-1, Patna 01 of MoF/06/ Splitting of Expenditure
18-19 4.30
JCIT, (R-1), 01 of MoF/08/
7 Splitting of Expenditure
Bhagalpur 18-19 5.68
8 ITO, Ramgarh 01 of MoF/09/ Splitting of Expenditure
18-19 1.87
9 CIT-II, Patna 01 of MoF/11/ Splitting of Expenditure
18-19 3.87
ITO,TDS, Ward 01 of MoF/12/
10 Splitting of Expenditure
Deoghar 18-19 1.07
Unauthorize tendering
11 Pr.CIT, Gurgaon for renovation/ulteration
4.1 125.67 of rented building.
Unauthorize approval of
12 Pr.CIT, Gurgaon tender for outsourcing of
4.4 200.00 manpower.
Pr.CIT, Non submission of
13
Ghaziabad 4.2 2.09 service tax certificate.
CIT-19, New
14 -do-
Delhi 4.2 1.39

17
 Less receipt of
15 Pr.CIT-8,Chennai
50 of 2015-18 2.74 performance security
Less receipt of
Pr. CIT (Central- performance security,
16
1), Chennai Excess amount of extra
60 of 2015-18 2.07 km.
Less receipt of
17 Pr.CIT, Salem
9,11 of 2016-18 6.13 performance security
Gross violation of GFR
DIT, (I&CI),
18 and Less receipt of
Chennai
27 of 2015-18 24.00 performance security
Less receipt of
19 Pr.CIT-6, Chennai
57 of 2016-18 1.43 performance security
Gross violation of GFR
Pr. CIT (Central-
20 and inadmissible local
2), Chennai
1 of 2014-18 6.52 conveyance allowance
Gross violation of GFR
Pr. DIT(Inv),
21 for hiring of vehicles
Chennai
54,57 of 2015-18 128.00 and manpower
Payment made on
incomplete bills and
CIT, (Judicial),
22 payment of belated
Chennai
25,26,27 of 2015- claims of standing
18 65.45 counsel
splitting up of Rent bill
23 CIT KOTTAYAM 9 28.88
to avoid sanction
Irregular payment of
Service Tax to various
ACIT,
24 5(1) & 5 (2) 4.76 Agencies 2.Amount
Mattancherry
collected as service tax
on Rent bills
DCIT
CENTRAL (splitting and execution
25 CIRCLE 3 5.27 of repair work by the
Investigation department)
CALICUT
Settlement
Irregular payment of
Commission
26 1 488.06 rent of hired building
Kolkata Code
and fixtures
257922

03 of MoF /01/ Irregular drawl of cost

27 JCIT(R-1), Patna 1.51
18-19 of 30 liters of petrol.

02 of MoF /02/ Irregular drawl of cost

28 ITO, BiharSharif 1.23
18-19 of 30 liters of petrol.

JCIT(R- 02 of MoF /08/ Irregular drawl of cost

29 1.40
I),Bhagalpur 18-19 of 30 liters of petrol.

18
 (irregular payment of
CIT-I
30 10 11.60 LTC claims in respect of
COCHIN
15 officials).
Excess expenditure over
sanctioned budget,
26,27, 29,30,55 Excess payment of small
Pr. DIT (Inv),
31 of 61.91 family norms and
Chennai
2015-18 special pay, short
recovery of CGEGIS/
CGHS/Licence fee etc.
CIT Booking of Air tickets
32 (Exemptions), 4 & 6 of 2016-18 1.48 from Unauthorised
Bengaluru Agency.

TOTAL 1198.72

6. Cases of Irregular purchase

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
AO, R-I(C) to IV(C),
Kol.
1 AaykarBhawan(Poorva 3 4.46 Splitting of purchase
) 110, Shantipally.
DDO Code- 257926

Splitting of purchase of
2 ITO , Bolangir 4.5 2.41
stationary
O/o DIT (I&CI)
3 5 (iv) 2.37 Splitting of purchase
Kochi
Irregularities in purchase
O/o CIT
4 9 4.66 of furniture under buy
(Appeals)Kochi
back scheme
Irregular procurement of
O/o CIT (Audit)
5 6 4.84 furniture, fittings,
Kochi
computers etc.
ITO,WARD – I
6 3:00 1.36 splitting of purchases
THODUPUZHA
DCIT
CENTRAL irregular procurement of
7 CIRCLE 2 22.67 furniture, fittings,
Investigation computer, printers etc
CALICUT
ACIT irregular purchase of
8 CENTRAL 5 17.21 computers, AC, Printers,
CIRCLE I TIRUR furniture .etc
ITO
Splitting of purchase(bed
9 WARD-I 3 1.66
sheet, AC, Fax machine)
GURUVAYUR

19
 Purchase of tonner and
Pr. CIT-10,
10 39 of 2016-18 4.00 stationery from non GeM
Chennai
portal.
Non-adherence of GFRs
11 Pr. CIT-1, Trichy 21 of 2012-18 12.99
provisions.
8,10 of 2016-
12 Pr. CIT, Salem 8.44 -do-
18
CIT (Admn. &
13 7 of 2016-18 4.14 -do-
TPS), Chennai
DIT (I & CI),
14 26 of 2015-18 3.11 -do-
Chennai
Procurement of goods
58,59,60 of from non GeM portal,
15 Pr. CIT-6, Chennai 34.29
2016-18 Non-adherence of GFRs
provisions.
Purchase of stationery
Pr. CIT (Central-
16 3 of 2014-18 1.54 without adherence of Rule
2), Chennai
145 & 146.
Pr. DIT (Inv), 56,58 of
17 46.87 -do-
Chennai 2015-18
Gross valuation of Rule
CIT(DR), ITAT, 149 of GFRs 2017 on
18 27 of 2016-18 8.10
Chennai purchase of stationery
items
CIT (Audit-2), GFRs provisions not
19 8 of 2014-18 5.04
Chennai followed.
Pr. CIT – 1, Purchase of stationery
20 24 of 2016-18 11.78
Bengaluru from non GeM portal.
TOTAL 201.94

7. Cases of non-adjustment of advances

(i) Contingent Advance

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
Pr. DIT (Inv), Non settlement of search
1 53 of 2015-18 446.00
Chennai and seizure advances.

Total 446.00

20
(ii) Travelling Advance

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
DDO-9, Kolkata Non adjustment of
1 2 3.89
Code 257876 TA/Transfer TA advances
Non-settlement of
O/o DIT (I&CI)
2 2 7.61 advances/pending for want of
Kochi
adjustment details
Non-settlement of
O/o CIT
3 5 1.14 advances/pending for want of
(Audit)Kochi
adjustment details
(/TA/Tr.TA) Non-settlement
DGIT (INV)
4 1 5.97 of advances/pending for want
COCHIN
of adjustment details
(/TA/Tr.TA) Non-settlement
CIT (CENTRAL)
5 4 1.06 of advances/pending for want
COCHIN
of adjustment details
TA/Tr.TA) Non-settlement of
CIT
6 4 7.59 advances/pending for want of
CALICUT
adjustment details
(TATr.TA) Non-settlement of
CIT
7 8 1.35 advances/pending for want of
TRIVANDRUM
adjustment detail)
ACIT, (TATr.TA) Non-settlement of
8 ALUVA RANGE, 7 1.79 advances/pending for want of
ALUVA adjustment detail)
DCIT
(TATr.TA) Non-settlement of
CENTRAL
9 1 4.19 advances/pending for want of
CIRCLE
adjustment detail)
THRISSUR
DCIT
(TATr.TA) Non-settlement of
CENTRAL
10 4 2.80 advances/pending for want of
CIRCLE
adjustment detail)
CALICUT
ACIT (TATr.TA) Non-settlement of
11 CENTRAL 4 3.44 advances/pending for want of
CIRCLE I TIRUR adjustment detail)
ITO (TATr.TA) Non-settlement of
12 WARD-I 5 1.36 advances/pending for want of
GURUVAYUR adjustment detail)
ACIT,
(TATr.TA) Non-settlement of
ALLEPPY
13 2 2.23 advances/pending for want of
RANGE,
adjustment detail)
ALLEPPY
TOTAL 44.42

21
(iii) Leave Travel Concession Advance / LTC (Home Town) Advance

Sl. Name of office Para No. of Amount Details of para in brief

No. Report in Rs.
Lakhs
DDO-19 Kolkata Non adjustment of LTC
1 2,4.10 4.72
Code 257872 advances
DDO-DIT (INV),
Non adjustment of LTC
2 Kolkata Code- 2 2.54
advances
257925
Non adjustment of LTC
DDO, O/o CIT-1,N.
3 7 4.57 advance amounting to
Delhi (Dehradun)
Rs.457608/-
Non adjustment of LTC
4 CIT-6, Delhi 4.5 1.02 advance and 10 days leave
encasement.
Non adjustment of LTC
5 Pr.CIT, Noida 4.3 2.08
advance
CIT Non adjustment of LTC
6 13 1.71
TRIVANDRUM advance
ITO,WARD – I Non adjustment of LTC
7 5 2.70 advance
THODUPUZHA
DCIT Non adjustment of LTC
CENTRAL advance
8 1 1.33
CIRCLE
THRISSUR
Non adjustment of LTC
advance
9 DCIT 5 3.41
CENTRAL
CIRCLE,CALICUT
10 Pr. CIT-6, Chennai 29 of 2016-18 1.77 Unadjusted LTC advance
DIT (Inv.), Non-settlement of LTC
11 3 of 2017-18 4.39
Hyderabad advance

TOTAL 30.24

(iv) Long term advances

Para No. of Details of para in

Sl. Name of office Amount
Report brief
No. in Rs. Lakhs
Nil

22
8. Cases of blocking of Government money.

Para No. of Details of para in

Sl. Name of office Amount
Report brief
No. in Rs. Lakhs
Nil

9. Cases of non-accountal of costly stores/Governments money.

Sl. Name of office Para No. of Amount Details of para in

No. Report in Rs. Lakhs brief
Purchase not recorded
in Stock register &
O/o DIT (I&CI)
1 5 6.55 Necessary certificate
Kochi
as per GFR not
recorded
ITO(INTELL)
2 1 1.64 No stock entry
THRISSUR

TOTAL 8.19

10. Any other item of special nature

Sl. Name of Para No. of Amount Details of para in brief

No. office Report in Rs.
Lakhs

DGIT, Non deposit of EPF

(I&CI), N. amount of contractual
1 01 of 2016-17 3.28
Delhi MTS Employees by the
(Allahabad) M/s. J.B. Securities.
Interest liability claimed
by owner of the office
building taking on rent
Pr.CIT, amounting to
2 4.2 812.44
Gurgaon Rs.219091767/- for non
payment of rent despite
the availability of
budget.

Total 815.72

23
 CHAPTER-IV
This section should include the brief description of the methodology/approach
adopted for conducting the Risk Based Internal Audit.

 Methodology

Traditional method of checking with reference to the system in place

has been adopted. It is also includes the checking of records, registers,
check of payments, contingent bills, loan & advances to government
servant, contribution of government servant towards new pension
scheme, General Provident Fund, service book, leave accounts, pay
fixation, cash book, licence fees, income tax calculation, other records
viz. dead stock register, advance registers pertaining to the period of
Audit.

Details of auditable units under the Ministry/Department and their periodicity

Annual

Periodicity No. of units

Annual 415

Biennial

Periodicity No. of units

Biennial 173

Triennial

Periodicity No. of units

Triennial 782

LIST OF SCHEMES WITH STATUS OF AUDIT CONDUCTED DURING THE YEAR

S. Name of Scheme Budgetary Provisions Whether audit conducted

(Rupees in Crores) during the year (Yes/No)
No.
Plan Non Plan
-----Nil-----

24
 LIST OF AUTONOMOUS BODIES/PSUs/GRANTEE INSTITUTIONS WITH
STATUS OF AUDIT CONDUCTED DURING THE YEAR

S. Name of Scheme Budgetary Provisions Whether audit conducted

(Rupees in Crores) during the year (Yes/No)
No.
Plan Non Plan
-----Nil-----

LIST OF BANKS WITH STATUS OF AUDIT CONDUCTED DURING THE

YEAR

S. No. Name of Scheme Budgetary Provisions Whether audit conducted

(Rupees in Crores) during the year (Yes/No)
Plan Non Plan
-----Nil-----

25
 CHAPTER-V
QUANTIFYING OF OUTCOME OF INTERNAL AUDIT IN TERMS OF
ACTUAL RECOVERIES MADE
DURING THE FINANCIAL YEAR UNDER REPORT

(Rupees in lakhs)

CASE OF NON-RECOVERY OF AMOUNT OBJECTED 16.81

GOVT. DUES AMOUNT ACTUALLY RECOVERED 5.28
CASES OF OVERPAYMENT AMOUNT OBJECTED 241.35
AMOUNT ACTUALLY RECOVERED 83.37
CASES OF IDLE MACHINERY AMOUNT OBJECTED 0
SUPPLIES STORES AMOUNT ACTUALLY RECOVERED 0
CASES OF LOSS/ INFRUCTUOUS AMOUNT OBJECTED 0.14
EXPENDITURE AMOUNT ACTUALLY RECOVERED 0
CASES OF NON-ADJUSTMENT AMOUNT OBJECTED 530.11
OF ADVANCES AMOUNT ACTUALLY RECOVERED 0.94
CASES OF BLOCKING OF GOVT. AMOUNT OBJECTED 0
MONEY AMOUNT ACTUALLY RECOVERED 0
PENAL INTEREST ON CASES OF AMOUNT OBJECTED 0
DELAYED REMITTANCES AMOUNT ACTUALLY RECOVERED 0
CASES OF EXCESS/DOUBLE AMOUNT OBJECTED 10.02
REIMBURSEMENT AMOUNT ACTUALLY RECOVERED 35.68
TOTAL AMOUNT OBJECTED 798.43
AMOUNT ACTUALLY RECOVERED 125.27

26
 CHAPTER-VI

List of coursed with officers trained in Internal Audit during the

year:

S. Name of Name of Number of officers trained Remarks

course/training Institution during the year under
No.
Report
Group Group Group
‘A’ ‘B’ ‘C’
1 Risk Based Audit INGAF NIL 04 NIL
Technique Kolkata
2 Service Rules INGAF & NIL NIL NIL
CGA
3 IDEA Data INGAF, 02 26 09 Training
Analysis Software New Delhi delivered by
officials of
IAW(HQ) O/o
Pr.CCA, CBDT

27
 Acronyms used in Annual Review 2018-19

Sl. No. Acronyms used Full Form

1 Gaz. and Non Gaz. Gazetted and Non Gazetted
2 Acctt. Accountant
3 LDC Lower Divisional Clerk
4 MTS Muti Tasking Staff
5 IDEA Integrated Data Extraction and Analysis
6 Pr. AO Principal Accounts Officer
7 PAO Pay and Accounts Officer
8 ZAO Zonal Accounts Officer
9 CBDT Central Board of Direct Taxes
10 DDO Drawing and Disbursing Officer
11 DDO/AO Drawing and Disbursing Officer/Administrative Officer
12 ITO Income Tax Officer
13 O/o Office of
14 Pr. CCIT Principal Chief Commissioner of Income Tax
15 Pr. CIT Principal Commissioner of Income Tax
16 CCIT Chief Commissioner of Income Tax
17 CIT Commissioner of Income Tax
18 Addl. CIT Additional Commissioner of Income Tax
19 JCIT Joint Commissioner of Income Tax
20 DCIT Deputy Commissioner of Income Tax
21 ACIT Assistant Commissioner of Income Tax
22 INV Investigation
23 ITAT Income Tax Appellate Tribunal
24 Pr. DGIT Principal Directorate General of Income Tax
25 DGIT Directorate General of Income Tax
26 DIT Directorate of Income Tax
27 Addl. DIT Additional Directorate of Income Tax
28 JDIT Joint Directorate of Income Tax
29 DDIT Deputy Directorate of Income Tax
30 ADIT Assistant Directorate of Income Tax
31 ITI Income Tax Inspector
32 Sr. TA Senior Tax Assistant
33 TA Tax Assistant
34 IAPs Internal Audit Parties
35 IAW Internal Audit Wing
36 HQ Head Quarter
37 TDS Tax Deduction at Source
38 TP Transfer Pricing
39 Rg. Range
40 DC (Admn) Deputy Commissioner of Income Tax (Administration)
41 DTRTI Direct Taxes Regional Training Institute
42 CIT (A)-1 Commissioner of Income Tax (Appeal) Range-1
43 I&CI Intelligence and Criminal Investigation
44 LTU Large Tax Unit
45 CIT (CO) Commissioner of Income Tax (Computer Operations)
46 DRP Dispute Resolution Panel
47 ITSC Income Tax Settlement Commission
48 I & CI Intelligence and Criminal Investigation

28