Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 628 - AT - Income TaxReference for special audit u/s.142(2A) - Chartered Accountant failed to supply the Audit Reports to the appellant as mandated - Held that: AO passing the order under appeal has not see or considered a detailed reply of the appellant by two letters dt.01/07/2014 [one in reply to AO’s letter dt 25/06/2014 and second requesting amendment of orders u/s.142(2A)] as also letter dt. 29/07/2014 and 25/09/2014, explaining how the Accountant appointed u/s.142(2A) of the Act actually performed duties assigned to him, particularly the fact that the Accountant failed to even commence the Special Audit for the first 60 days after the appointment on 26/03/2014 and did not even spend a single day for audit work. Accountant failed to supply the Audit Reports to the appellant as mandated by the provisions of S.142(2A) of the Act before the due date and actually supplied the same after the due date, even after availing the maximum period of 180 days and in spite of the appellant’s AR having alerting him of approaching limitation. These letter’s reference has also been given in the order of the ld. CIT(A). In our considered opinion AO did not have any “good and sufficient” reasons for extending the period of audit “suo motu” to the maximum permissible extent, and was not correct in casually attaching the tag of non-cooperative attitude to the appellant. AO has exercised beyond his power. We can also see from the order of the lower authorities that no incriminating documents were found during the search and whatever document were found in earlier year for completed the assessment u/s.143(3) and 143(1). In our considered opinion, additions made were having no foundation or reference of any seized document al all. So whatever additions have been made by the AO were on the basis of commenced of special auditor - Decided against revenue
|