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2013 (5) TMI 108 - HC - Income TaxSpecial audit - nature of the accounts - complexities - in the interest of the Revenue - Held that:- It reflects from the report that Auditor have pointed out many infirmities in the Assessee's account. In Purvanchal Vidyut Vitran Nigam Ltd. Versus UOI reported in [2010 (2) TMI 625 - Allahabad High Court] it has been held that the object behind enacting Section 142 (2A) is to assessed the A.O. in framing a correct and proper assessment based on the accounts maintained by the assessee and when the assessing officer finds the accounts of the assessee to be complex, in order to protect the interest of the revenue. Further it was held that where the opportunity has been given to the assessee and their proper reason for framing the opinion that the nature of the accounts is complex and in the interest of the revenue, special audit is necessary and the direction for special audit cannot be said to be without material and the approval granted by the Commissioner of Income Tax cannot be said to be mechanical and without application of mind. Furthermore, the proceedings under Section 142 (2A) of the Act is not strictly a judicial proceeding and, therefore, the elaborate reasoning is not required to be given. In the instant case, notice issued to the petitioner has contained issues in brief, which the A.O. thinks to be necessary and the reasons assigned therein is perfectly justified and opportunity has also been provided to the petitioner prior to impugned order. - Decided against the assessee.
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