Technical Evidences as Foundation of Facts in Tax Matters:Instruction No. 5/2011 Dated 30-03-2011 of CBDT-An Analysis and some Suggestions Including Effective Role of Cost Accountants

Abstract

The Supreme Court directed the CBDT to issue instructions to Income-tax Authorities about examination of technical experts where intricate technical aspects are involved and the examination of the same is necessary to understand factual aspects to decide tax matters involving huge revenue. As per author the directions of the Supreme Court are about examining technical experts. Author feels that Cost Accountants-having some basic knowledge of engineering and being more near to factories, sites, service centers and technical persons of organization-can act in much efficient way for the purpose of explaining technical aspects and producing technical evidences and experts before tax authorities. Author feels that the Boards instruction are not in accordance with the directions of the Supreme Court. The author has made some suggestions for consideration of the CBDT.