CAG pulls up I-T dept for not adopting uniform mechanism

Apex auditor CAG on Tuesday pulled up the income tax department for not adopting a uniform approach to deal with cases of fictitious donations or bogus purchases causing revenue loss to the government. “The assessment officers (AOs) did not take cognisance of report of the investigation wing and failed to initiate necessary follow up actions by disallowing the amounts of the fictitious donations or bogus purchases, which resulted in the loss of revenue,” said a Comptroller and Auditor General (CAG) report tabled in Parliament. 

It also noted that AOs were allowing or disallowing amounts pertaining to bogus transactions arbitrarily, applying discretion that was not available to them. Fictitious donations or bogus purchases are used as a instrument to launder black money.