TMI BlogDirection for Special Audit (Audit by department) - Section 142(2A)X X X X Extracts X X X X X X X X Extracts X X X X ..... sh a report of such audit or such inventory valuation in the prescribed form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed, and such other particulars as the Assessing Officer may require , Such a decision may be taken by the AO, if regard to the following :- The nature and complexities involved in accounts or Volume of the accounts; or Doubts about the correctness of the accounts; or Multiplicity of transactions in the accounts; or Specialized nature of business activity of the assessee; and It is in the interest of the revenue to get the special audit done. Such Direction can be issue with prior approval of Chief co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Explanation to sub-section (2) of section 288; and (ii) cost accountants, out of the persons referred to in the Explanation to section 142. [ Rule 14B(1) ] Where the Assessing Officer directs (i) for audit under clause (i) of section 142(2A) on or after the 1st day of June, 2007; or (ii) for inventory valuation under clause (ii) of section 142(2A) on or after the 1st day of April, 2023, the expenses of, and incidental to, audit or inventory valuation (including the remuneration of the Accountant or Cost Accountant, qualified Assistants, semi-qualified and other Assistants who may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under sub-section (2A) shall be furnished by the assessee to the Assessing Officer within such period as may be specified by the Assessing Officer. [ Section 142(2C) ] 5. Audit report has to be submitted within time allowed by AO which can be extended by the AO may, suo motu , or on an application made in this behalf by the assessee but maximum time must not exceed 180 days from the date on which direction under section 142(2A) is received by the assessee. 6. Special audit can be directed for particular segment of A/c s i.e. sales, purchase etc. 7. CONSEQUENCES OF FAILURE TO GET BOOKS AUDITED Failure to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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