S. 142(2A) : Inquiry before assessment-Special audit-Reference to Special Audit-Without opportunity of being heard-Illegal-No extension of time for assessment-Additional ground-Assessment order is barred by limitation. [S. 143(3), 153, 254(1)]
The assessee has raised additional ground before the Tribunal the appointment of special auditor u/s. 142(2A) deserves to be declared illegal since the said appointment is without examination of books of accounts and also without providing reasonable opportunity of being heard to the appellant accordingly the assessment deserves to be quashed having been passed beyond the limitation period prescribed u/s 153 since the appointment of Special auditor u/s 142(2A) is illegal and therefore, the period for assessment could not have been extended. The Tribunal admitted the additional ground and held that where the appointment of a special auditor under 142(2A) of the Act was without examination of books of accounts and also without providing reasonable opportunity of being heard to the appellant, the said reference was held to be illegal. Consequently, there was no extension of time period for assessment. Hence the assessment was held to be made beyond the period of limitation. (ITA 1325/CHD/2010 dt. 30-12-2022) (AY. 2006 -07)
Rajiv Kumar v. ACIT (Chd.)(Trib.) www.itatonline .org
[Coram : Before Shri Sanjay Garg, Judicial Member & Shri Vikram Singh Yadav, Accountant Member]