Section 25(9) in Uttaranchal Value Added Tax Act, 2005
(9)Tax Audit:(a)Notwithstanding anything contained in this Act tax audit of records and related documents of a dealer, selected for this purpose may be conducted for the purpose of ensuring the compliance by the dealer of the requirements of the Act or for examining the correctness of periodical and final returns and admissibility of various claims including input tax credit;Provided that no dealer may be selected for tax audit, for an assessment year for which proceedings under sub-section (6) or (7) of Section. 25 have been initiated or completed by the Assessing Authority;Provided further that no dealer may be selected for tax audit for an assessment year after the expiration of five years from the end of such assessment year.(b)Tax audit may be conducted by an officer, posted in the tax audit wing or by any other officer authorized for this purpose by the commissioner;(c)The selection of dealer or dealers for the purpose of tax audit shall be in the manner as may be prescribed by the Commissioner;(d)Tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the officer conducting audit may, if he deems fit, require the dealer either to attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice,If in compliance of the notice served in this sub-Section, the dealer does not attend the office of the officer in charge of tax audit or any other place which may be specified in the notice; or if attends does not produce or cause to be produced the books of accounts and other documents, the officer in charge of tax audit may impose a penalty of upto Rs. 5000/- for each non compliance of the notice. No such penalty shall be imposed without giving the dealer a reasonable opportunity of being heard. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;(e)The officer conducting the tax audit shall have powers to make or cause to be made extracts or copies from the books of accounts and other documents, seek such information or statement, which may be useful and relevant to any proceeding under this Act. The dealer shall provide full co-operation and assistance to the audit party during the course of audit.If the dealer prevents or obstructs the officer from making extracts or copies from the books of the account and other document required for the purpose of tax audit, or from seeking such information or statements required for the purpose of tax audit or does not cooperate and assist the audit party during the course of audit, the officer in charge of the tax audit may impose a penalty upto Rs.10,000/- for each non compliance. No such penalty shall be imposed unless a reasonable opportunity of being heard has been given to the dealer. The provisions relating to recovery of dues shall mutatis mutandis apply for recovery of imposed penalty;(f)After the completion of the tax audit, a tax audit report shall be sent to the Assessing Authority and the dealer concerned;Provided that in case the officer conducting the audit has reason to believe that;(i)the whole or any part of the turnover in respect of any tax has escaped the assessment; or(ii)the whole or any part of the turnover in respect of any tax has been under assessed; or(iii)the whole or any part of the turnover in respect of any tax has been assessed, at a rate lower than the rate at which it is assessable; or(iv)any exemption or deduction has been wrongly claimed; or(v)any tax credit has been wrongly claimed. No tax audit report shall be finalized without giving the dealer a reasonable opportunity of being heard.(g)The Assessing Authority on the basis of the "tax audit report" may initiate necessary proceedings as per the provisions of the Act;
