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2019 (3) TMI 18 - BOMBAY HIGH COURTSpecial audit u/s 142(2A) - amendment in Section 142(2A) w.e.f. 1.6.2013 - complexity & doubts about correctness of the accounts, multiplicity of transactions - specialized nature of business activities - scope of AO's exercising powers u/s 142(2A) - Transfer pricing issues - honest attempt on the part of the AO to understand the books of accounts of the assessee company or application of mind - HELD THAT:- In the present case, we have already noted that the detail grounds on which the Assessing Officer formed an opinion that special audit was necessary and the final order that he passed calling for such special audit. As noted, final audit proceeds on various grounds of genuineness of the transactions and payments by the assessee. We may recall, doubts about correctness of the accounts, multiplicity of transactions and specialized nature of business activities are some of the additional grounds, now recognized by the legislative for special audit. We do not find that the order requires any interference. Merely because some of the transactions were subjected to transfer pricing mechanism, would not debar the Assessing Officer from exercising powers under Section 142(2A) of the Act, if the conditions for exercising such powers were otherwise satisfied. The Transfer Pricing Officer would be essentially concerned with the assessment of the arm's length price of the specified transactions with an associated enterprise. Reference to the judgment of this Court in case of this very assessee [2018 (10) TMI 376 - BOMBAY HIGH COURT] would also be of no avail. It was a case in which the assessee had challenged the orders passed by the Assessing Officer calling upon for special audit of the petitioner's accounts for several assessment years. However, the decision of the Court was not on merits. the Court did not decide the petitioner's objection to the special audit on merits, instead proceeded on consensus. Secondly, the assessment years involved in the said orders besides others were 2010-11, 2011-12 and 2014-15. For the assessment years 2010-11 and 2011-12 unamended provisions of Section 142(2A) would apply. In the result, we do not find merit in this petition - Decided against assessee.
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