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2023 (1) TMI 1121 - AT - Income TaxTime-limit for completion of assessment under section 153A - limitation to pass the assessment order - appointment of special auditor u/s. 142(2A) - whether the AO was justified to order the appointment of special auditor u/s. 142(2A) of the Act, and thereby getting additional time to frame the assessment in terms of explanation 1 (iii) to sub-section (3) of Section 153 of the Act? - HELD THAT:- As considering the relevant aspects that the reference by the AO to special auditor being bereft of plausible reasons for holding about the complexity of accounts and forming such opinion even without examining such accounts and the principals of natural justice being violated, the assessee being given no proper opportunity to object to such reference and even mechanical approval by the CIT, therefore, in the light of the legal proposition laid down by the Hon'ble Supreme Court in the case of Sahara India (Firm) [2008 (4) TMI 4 - SUPREME COURT], we hold that the order appointing Special Auditor u/s 142(2A) of the Act passed by the AO as bad in law. Since the extended period was taken by the AO under the guise of Special audit, hence the same cannot be counted for computing the period of limitation to pass the assessment order. As held by the Hon'ble Supreme Court in the case of ‘Harsha Dhingra Vs. State of Haryana’ [2001 (9) TMI 1171 - SUPREME COURT] the subordinate Forums including this Tribunal is bound to apply law declared by the Hon'ble Supreme Court and is duty bound to apply such dictum to case which would arise in future. The original limitation to pass the assessment order expired on 31.12.2008 in these cases and the impugned assessment order passed thereafter on 21.08.2009 are therefore held to be barred by limitation, hence, the impugned assessment orders passed u/s 153A in respect of the quantum appeals are hereby quashed and the consequential additions made by virtue of such invalid assessment orders stand deleted. Appeal of assessee allowed.
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