Income Tax Department Recovers Rs 3,588 Crore, But 59,352 Audit Cases Remain Unsettled: CAG

A recent report by the Comptroller and Auditor General (CAG) has revealed that while the Income Tax Department successfully recovered ₹3,588 crore from rectifying assessment errors, a staggering 59,352 audit cases from previous years remain unsettled. These pending cases involve a substantial tax effect and are primarily due to the department's failure to respond to audit observations. The CAG report highlights significant systemic inefficiencies, including errors in interest calculation, depreciation allowances, and the handling of business expenditures. The report urges the Central Board of Direct Taxes (CBDT) to not only revisit these pending assessments but also implement a more robust and foolproof IT system and internal control mechanism to prevent such errors from recurring in the future.