Introduction

The Comptroller and Auditor General (C&AG) derives his authority and functions mainly from the Articles 149 to 151 of the Constitution of India.  Section 16 of the C&AG’s Duties, Powers and Conditions of Service (DPC) Act, 1971 authorises C&AG to audit all receipts (both revenue and capital) of the Government of India and of Governments of each State and Union Territory having a legislative assembly and to satisfy himself that the rules and procedures are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed.  Accordingly, the mandate to audit central revenues of Direct Taxes is derived from the Constitution of India and Section 16 of the C&AG’s DPC Act, 1971.

            Section 13 of the C&AG’s DPC Act authorises C&AG to audit all the expenditure of Consolidated Fund of India and of each State/Union Territory having legislative assembly; all transactions of the Union and of the States related to Contingency Fund and Public Accounts.

The jurisdiction of audit in respect of Offices of Income Tax Department (ITD) in Karnataka and Goa region rests with the Office of the Principal Director of Audit (Central), Bengaluru.