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2017 (8) TMI 1074 - HC - Income TaxConstitutional validity of the amendment to Section 142(2A) - arbitrary powers of AO - special audit of accounts - it was contended that sch unguided discretion, having no nexus to the object of Section 142(2A), submits the petitioner, is contrary to the principles of equality enshrined in Article 14. - nature and complexity of the accounts, volume of the accounts, doubts about the correctness of the accounts, multiplicity of transactions in the accounts or specialised nature of business activity of the assessee. Held that:- Section 142(2A) was enacted to facilitate investigation into the accounts of an assessee for the proper determination of tax liability. It deals with cases where the AO needs to take the assistance of a Chartered Accountant in order to be able to understand the assessee’s accounts and determine the correct tax liability. It is, therefore, abundantly clear from the aforesaid dictum, that Section 142(2A)confers an important power on the Revenue to curb tax evasion and balances it with the inconvenience that an assessee may face. The impugned amendments to Section 142(2A) also have to be viewed in that light and hence must be considered to be reasonable. It is clear that in fiscal matters, the Legislature has the ability to amend the law retrospectively. Moreover, Section 142(2A) of the Act does not confer any vested right on the petitioner, which could not be taken away by retrospective amendment. Therefore, even if the amendments to Section 142(2A) were given retrospective effect, the same would be within the powers of the Legislature There is no merit in the challenge. - Writ petitions dismissed.
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