Audit of Income Tax affairs: FBR may select persons or classes through computer ballot

The Federal Board of Revenue may select persons or classes of persons for audit of Income Tax affairs through computer ballot which may be random or parametric. The income tax circular 6 of 2013 issued here on Friday explained the selection for audit by the Board [Section 214C] of the Income Tax Ordinance 2001.
The FBR may select persons or classes of persons for audit of Income Tax affairs through computer ballot which may be random or parametric. Whenever there is a parametric selection of cases the Board shall keep the parameters confidential. For the removal of doubt it has been clarified that the powers of the Commissioner under section 177 are independent of the powers of the Board under section 214C to select a case for audit of the income tax affairs and there is no restriction in section 214C that restricts the powers of the Commissioner to call for the record or documents including books of accounts of a taxpayer for audit and to conduct audit under section 177 of the Income Tax Ordinance, 2001, circular added. The circular added that the section 177 of the Income Tax Ordinance, 2001 empowers the Commissioner to initiate audit of income tax affairs of any taxpayer and to call for any record or documents including books of accounts maintained under this Ordinance or any other law for the time being in force for conducting audit of the income tax affairs of the person. For the removal of doubt an 'Explanation' has been added to clarify that the powers of the Commissioner under section 177 are independent of the powers of the Board under section 214C to select a case for audit of the income tax affairs and that section 214C does not restrict the powers of the Commissioner to call for the record or documents including books of accounts of a taxpayer for audit and to conduct audit under section 177 of the Income Tax Ordinance, 2001.