TMI Blog1998 (1) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ority for the block assessment period April 1, 1986 to January 24, 1997, under section 158BC. The return for the block period was filed by the petitioner assessee on October 13, 1997. Thereafter, the petitioner filed Writ Petition No. 72 of 1998 questioning the jurisdiction of the assessing authority to make the assessment under section 158BC, when the time limit for completion of the said block assessment was said to have expired on November 30, 1997, under section 158BE. This court, by an order dated January 8, 1998, directed the filing of affidavits and issued ad interim directions as under : "Any assessment made by the Assessing Officer under section 158BC of the Income-tax Act, 1961, shall not be given effect to except with the leave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s highly exorbitant besides being illegal. The main prayer, however, in the writ application is with regard to the constitutional validity of section 142(2A) of the Income-tax Act. Learned counsel for the respondent authority placed before this court a xerox copy of the letter dated December 29, 1997, of the assessing authority addressed to the Commissioner seeking approval for grant of sanction for special audit of the assessee's accounts. A prima facie perusal of the said letter shows that the assessing authority has considered and applied his mind to the facts of the case and also the appraisal report and noted that the genuineness of certain expenses running into lakhs is doubtful and the correctness of entries appearing in the accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he power under section 142(2A) can be invoked when the assessing authority finds that the accounts are complicated. The overlapping in certain situations with regard to section 44AB and section 142(2A) do not render the provision either void or superfluous, A. S. Sarma v. Union of India [1989] 175 ITR 254 (AP). The question as to the constitutional validity of section 142(2A) is a matter to be decided in the main writ application and until so determined its validity has to be presumed. In the circumstances, I am not inclined to stay the operation of the special audit pursuant to the orders passed under section 142(2A). It need only be clarified that the above are prima facie views in relation to the present application for stay of audit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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