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2023 (3) TMI 1313 - AT - Income TaxLevying penalty u/s 272A(1)(d) - non-compliance of correspondences for special audit u/s 142(2A) - HELD THAT:- CIT(A) has failed to appreciate the fact that the letters of communication of special audit in the present case were no “direction” u/s 142(2A) ever issued to the assessee during the course of assessment proceedings, containing particulars for which the exercise of special audit was to be undertaken and further, the Ld. AO has admitted in order u/s 154 that letters are not “direction” issued u/s 142(2A) but are letters in continuation of notice u/s 142(2A) issued on 24.02.2021. AO has written a letter to M/s Surendra Mahajan and Associates as above, for special audit of four case including the appellants but, the AO had never issue a specific notice with point of special audit to the appellant assessee u/s 142(2A) of the Act with the Approval of the PCIT. In view of the matter we hold that there was no failure on the part of the assessee to comply with a “direction” u/s 142(2A), and accordingly, penalty u/s 272(l)(d) vide order dated 31.07.2021 cannot be sustained. We accept the grievance of the assessee as genuine and justified. As such, the penalty levied u/s 272(1)(d) of the Act, is hereby deleted. Appeal of the assessee is allowed.
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