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2023 (12) TMI 776 - DELHI HIGH COURTExtension of the time for submission of audit report - extension of time under the proviso to Section 142(2C) - Whether the power of extension of time under the proviso to Section 142(2C) is procedural/administrative in nature and can be exercised by an authority superior to the Assessing Officer? - Whether the extension given to the Chartered Accountant appointed under the provisions of Section 142(2A) for submission of the audit report was in consonance with the proviso appended to Section 142(2C) of the Act?” HELD THAT:- As per The relevant parts of the judgment [2023 (12) TMI 740 - DELHI HIGH COURT] as has been correctly submitted on behalf of the respondent/assessee, the decision taken to get an audit conducted under Section 142(2A) of the Act is a step in the process of assessment proceedings and, therefore, is clearly not an administrative power; as the appointment of a special auditor entails civil consequences Given that the initial exercise of the power has been explicated as one that is not administrative, the CIT(A) could not have extended the time based on the recommendation of the AO. However, the enunciation of this legal principle does not derogate from our observation above that since the discretionary power was vested in the AO (which was non-delegable), it could not have been exercised by the CIT, irrespective of the nature of the power. Thus, for the preceding reasons, the question of law, as framed, is answered against the revenue and in favour of the assessee.
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