Clause 41 seeks details of demand raised or refund issued during the previous year under any tax laws other than the Income-tax Act, 1961 and Wealth-tax Act, 1957 along with details of relevant proceedings.
As per Para 79.1 of the ICAI’s Guidance Note on tax audit, the tax auditor should obtain a copy of all the demand/refund orders issued by the governmental authorities during the previous year and received by the assessee up to the date of audit under any tax laws other than Income Tax Act and Wealth Tax Act.
It may be noted that even though the demand/refund order is issued during the previous year, it may pertain to a period other than the relevant previous year. Further, if there is any adjustment of refund against any demand, the same should be reported.