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2017 (5) TMI 981 - HC - Income TaxValidity of order passed u/s 142(2A) for special audit - reasonable opportunity should have been given to the petitioner - Held that:- Notice Annexure-AC issued to the petitioner on 20th March 2015 asking to appear on 23rd March 2015. In that case, the petitioner is left with only two days for preparing itself for answer. Since, 20th March 2015 is the date on which the communication addressed and the petitioner to report before the respondent on 23rd March, 2015, the petitioner was left with only two days, i.e. 21st and 22nd March, 2015 to get itself prepared. That cannot be said to be a reasonable opportunity that is provided to the petitioner, as it is stated by the petitioner that the matter is of complex nature and it would be reasonable on behalf of the respondent to grant some more time. As in the case of SAHARA INDIA (2008 (4) TMI 4 - Supreme Court ) observed that an order under Section 142(2A) entail civil consequences, even after the obligation to pay auditor’s fees and incidental expenses has been taken over by the Central Government, and therefore the rule of audi alteram partem, is required to be observed and assessee has to be provided a reasonable opportunity of being heard. In the light of the above judgment, it is very clear that unless the aggrieved party is provided fullest opportunity in compliance of principle audi alteram partem, it would not make the fullest opportunity as provided under Section 142(2A) of the Act. Though proviso is silent about reasonable opportunity, it refers opportunity to both the petitioner as well as the respondent, depending upon the complexity of the cases to provide reasonable opportunity. Reasonable opportunity is to be exercised by the respondent depending upon the case and also on the basis of the request made by the party considering the above aspect. In the case on hand, thus feel what has been given to the petitioner is contrary to the principles of audi alteram partem and has not followed the principles of natural justice. - Decided in favour of assessee.
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