New Delhi, the 27th September, 2023
G.S.R. 697(E).– In exercise of the powers conferred by sub-section (2A) of section 142 read with section
295 of the Income-tax Act, 1961 (hereinafter referred to as the Act), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:––
- Short title and commencement.–– (1) These rules may be called the Income-tax (Twenty Second
Amendment) Rules, 2023.
(2) They shall come into force from the date of publication in the Official Gazette.
- In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for rule 14A, the following rule
shall be substituted namely:––
“14A. Forms for report of audit or inventory valuation under section 142(2A).–– (1) The report of audit of the accounts of an assessee which is required to be furnished under clause (i) of sub-section (2A) of section 142 shall be in Form No. 6B.
(2) The report of inventory valuation of an assessee which is required to be furnished under clause (ii) of sub-section (2A) of section 142 shall be in Form No. 6D.”.
- In the principal rules, for rule 14B, the following rule shall be substituted namely:––
“14B. Guidelines for the purposes of determining expenses for audit or inventory valuation. ––
(1) Every Chief Commissioner shall for the purposes of clause (i) and clause (ii) of sub-section (2A) of section 142
shall maintain a panel of ––
(i) accountants, out of the persons referred to in the Explanation to sub-section (2) of section 288; and
(ii) cost accountants, out of the persons referred to in the Explanation to section 142.
(2) Where the Assessing Officer directs ––
(i) for audit under clause (i) of sub-section (2A) of section 142 on or after the 1st day of June, 2007; or
(ii) for inventory valuation under clause (ii) of sub-section (2A) of section 142 on or after the 1st day of April,
the expenses of, and incidental to, audit or inventory valuation (including the remuneration of the Accountant or
Cost Accountant, qualified Assistants, semi-qualified and other Assistants who may be engaged by such Accountant
or Cost Accountant) shall not be less than three thousand seven hundred and fifty rupees and not more than seven
thousand and five hundred rupees for every hour of the period as specified by the Assessing Officer under sub-
section (2C) of section 142.
(3) The period referred to in sub-rule (2) shall be specified in terms of the number of hours required for completing
(4) The Accountant or Cost Accountant referred to in clause (i) or clause (ii) of sub-section (2A) of section 142 shall
maintain a time-sheet and shall submit it to the Chief Commissioner or Commissioner, along with the bill.
(5) The Chief Commissioner or the Commissioner shall ensure that the number of hours claimed for billing purposes
is commensurate with the size and quality of the report submitted by the Accountant or Cost Accountant.”.
- In the principal rules, in Appendix II,––
(a) in Form No. 6B:––
(i) for the heading of the Form, the following shall be substituted, namely:––
“Audit report under clause (i) of section 142(2A) of the Income-tax Act, 1961”;
(ii) in the Notes, for serial number 2 and entries relating thereto, the following serial number and entries shall be
substituted, namely – “2. This report has to be given by the accountant nominated by the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under clause (i)
of section 142(2A) of the Income-tax Act, 1961.”;
(b) after Form No. 6C, the following Form shall be inserted, namely:––
“FORM NO. 6D
[See rule 14A]
Inventory Valuation report under clause (ii) of section 142(2A) of the Income-tax Act, 1961
- * I/We have examined the books of account and other documents with respect to inventory and inventory valuation of__________________________[name and address of the assessee] Permanent Account No._______ for the assessment year as at _____________.
- * I/We have conducted Inventory Valuation in compliance with the requirements under the relevant
provisions of Income-tax Act 1961 and Income–tax Rules 1962. As per the Inventory Valuation carried out by *me/ us, the opening inventory has been valued at Rs. _____ (in words
____) and the closing inventory has been valued at Rs. ___ (in words _____) for the relevant period ____ to ______.
- * I/ We have obtained all the information and explanations which to the best of * my/our knowledge and belief were necessary for the purposes of the Inventory Valuation.
- In * my/our opinion, from *my/ our examination of the books of account and other documents, it appears that proper books of account and other documents with respect to inventory have been kept by the head office,other premises and the branches of the assessee visited by * me/us, and proper data adequate for the purposes of inventory valuation have been received from branches not visited by * me/us subject to the comments given below:
- In * my/our opinion and to the best of * my/our information and according to explanations given to * me/us,the Inventory Valuation presented herein below in * my/our report is true and correct subject to comments
- The prescribed particulars and such other particulars as were required by the Assessing Officer by order No.___________ dated __________________are annexed hereto. In * my/our opinion and to the
best of *my/our information and according to explanations given to * me/us, these are true and correct.
- Any variations observed in the Inventory Valuation Report compared to the disclosures made in Form No.3CD (or if no Form No. 3CD has been furnished, then value as per audited accounts) have been adequately explained along with the reasons and justifications thereof.
- **Name of Cost Accountant………
- Address ……….
- Membership Number ………