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2013 (7) TMI 362 - ALLAHABAD HIGH COURTSpecial audit u/s 142(2A) - Violation of principal of natural justice - Assessment order barred by limitation period - Held that:- evident that the copy of the letter dated 08.03.2004 written by the A.O. was never served on the assessee. However, the CIT has granted the approval for issuance of the direction for special audit under the said provision. Had an opportunity given, the proper explanation might have been given by the assessee but that was not done, which is the violation of the principles of natural justice. Income-tax Officer gets jurisdiction to pass an assessment order if it is within limitation. If the assessment is barred by time, then any decision on merits would be of no consequence, and for the same reason, the decision, on merits, by the appellate authorities would also be of no consequence and would have to be ignored - underlying principle of natural justice, evolved under the common law, is to check arbitrary exercise of power by the State or its functionaries - Therefore, the principle implies a duty to act fairly - These rules can operate only in areas not covered by any law validly made; they do not supplant the law but supplement it - Order of Tribunal and lower authorities set aside - Following decisions of Sahara India (Firm) vs CIT [2008 (4) TMI 4 - Supreme Court], Rajesh Kumar vs. Deputy CIT [2006 (11) TMI 135 - SUPREME Court] and Commissioner of Income-tax, Delhi, Central-I v. Escorts Farms P. Ltd.[1989 (7) TMI 64 - DELHI High Court] - Decided in favour of assessee.
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