Scope of tax audit

This query is : Resolved

ashok bhurani (Querist)
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02 October 2017 During tax audit, the figures of turnovers are compared and reconciled with Indirect tax returns filed by assesse such as Excise returns, Vat returns, service tax returns. If there is variation in turnover (more specifically turnover is less in final accounts as compared to indirect tax returns) the tax auditor raises the query to management. But what about the wrong claim of ITC by assesse in his indirect tax returns. Whether these wrong claims are covered by the scope of tax audit and if yes, how to report the same. In Form 3CA and 3CB, there is mention of true and fair view and if assesse has claimed ITC wrongly under any indirect tax law, the accounts does not show true and fair view. So in my opinion such wrong claim must be reported in tax audit. What you say.