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2019 (4) TMI 714 - HC - Income TaxSpecial audit u/s 142(2A) - denial of principles of natural justice - inability of the assessee to provide particulars with respect to various units - HELD THAT:- In the present case, the nature of proceedings which culminated in the passing of the order u/s 142(2A), to this Court’s mind, do not show any unfairness; they in fact highlight that the AO started the enquiry to understand the claims of the assessee as far back as in September. The notice seeking detailed facts issued in late September 2018 could be replied with the relevant details only after two months, i.e. 21.11.2018 by the NPCC. Thereafter too, on not less than three occasions, the AO called for further details. The process of receiving these details continued – even after the issuance of the SCN on 18.12.2018. The last of these documents was in fact given on 21.11.2018. It cannot be said that there was no genuine attempt on part of the AO to understand the nature of the assessee’s business; its method of accounting or to understand the nuances of its books or documents. So far as the reasons given by the AO are concerned, this Court is of the opinion that the NPCC’s argument that the conclusion amounts to mere pretence is unwarranted. The extract of the order clearly reflect the AO’s reasoning. The inability of the assessee to provide particulars with respect to various units (in regard to each of which it had claimed substantial deductions by way of expenses) as well as the adverse remarks made by the NPCC’s auditor do amount to voluminous evidence which also present complexity of the accounts that needed a close scrutiny. This Court is of the opinion that there is no merit in the writ petition. Furthermore, a perusal of the original file produced by the Revenue would disclose that even as late as in the third week of January, the special auditor designated by the AO, was repeatedly calling for details; the AO had sought for the order to be kept in abeyance. This Court had stayed the direction to conduct special audit. In these circumstances, the time during which the present writ petition was pending, i.e. 17.01.2019 till today shall be excluded for the purpose of computing the period of limitation to carry on and conclude the special audit. The writ petition is, therefore, dismissed
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