I-T dept yet to rectify 59,352 cases with Rs 6,000 cr tax effect: CAG

The Comptroller and Auditor General of India (CAG) on Monday said the income tax department recovered ₹3,588.79 crore from demands raised to rectify the errors in assessments that the audit had pointed out. However, 59,352 cases of earlier years pointed out in the audit up to March 31, 2023 remained unsettled as of February 28 this year for want of replies from the department, the CAG said in its report for 2022-23.

These cases pertain to corporation tax with a tax effect of ₹6,252.06 crore, it said.

The cases mainly pertained to errors in the levy of interest, irregularities in allowing depreciation, business losses and incorrect allowance of business expenditure, unexplained investment and even arithmetical errors in the computation of income and tax.


The report flagged 194 high-value cases pertaining to income tax with a tax effect of ₹1,677.15 crore.

The department has taken action to initiate a correction in the cases pointed out by the audit. However, among all cases, including non-scrutiny assessments, probability of occurrence of such errors of omission or commission cannot be ruled out, according to the CAG. "The CBDT not only needs to revisit the assessments completed during the year but also put in place a foolproof IT system and internal control mechanism to avoid the recurrence of such errors," the report said.