Govt considering special audit to fix tax liability

The Income Tax Department is considering a special audit of the accounts of the scam-ridden Satyam to ascertain tax liability of the IT firm.

“We are considering a special audit of the books of Satyam. An order for special audit of the accounts of Satyam is likely to be passed within a week,” a tax official said.

The Income Tax Department can order a special audit of the accounts under Section 142 (A) of the Income Tax Act in the interest of revenue.

Under the special audit, the books of accounts are re-examined by the auditors appointed by the department.

 

When contacted, the Central Board of Direct Taxes spokesperson declined to comment on the issue.