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2012 (5) TMI 166 - HC - Income TaxSpecial audit u/s 142(2A) - opportunity of being heard before issuance of order of special audit - held that:- A comparison of the show cause notice given to the petitioner with the reasons given by the Assessing Officer would show that the grounds on which the previous approval has been granted, finds mention in the show cause notice dated 11th of September, 2011 and the petitioner has not been prejudiced in any manner. - Decided in favor of revenue. Examination of books of accounts and form 3C before order u/s 142(2A) - held that:- The Assessing Officer first tried to clear the doubts by calling replies and he resorted to Section 142 (2A) thereafter, he found that it is difficult to work out the real income of the assessee due to complex nature of the entries in the account books. It is one thing to say that the account books may be rejected and the best judgement assessment may be resorted to under section 144 of the Act. But even then, best judgement cannot be arbitrary or whimsical. There has to be some basis for it. - Cogent and valid reasons have been assigned by the Assessing Officer - order is not in error - decided against the assessee.
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