TMI Blog2006 (7) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... nd circumstances in which this appeal has arisen are that a search took place on November 20, 1997, and notice under section 158BC was issued on September 7, 1998. In compliance with which, the assessee submitted a return on October 20, 1998, declaring undisclosed income of Rs. 2,44,000 for the block period. Only one day before the period for completing the block assessment was expiring, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing assessment, which is not permissible under law. On the basis of this finding, the reference to the special audit was held to be illegal and consequently, the assessment order was held to be barred by time. There is no dispute about it that if the period reckoned for special audit which was directed to be conducted a day before the expiry of period of completing the block assessment, is not tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the block period. Apparently the order was for preparing fresh books rather than to conduct a special audit. This was on the face of it beyond the scope of provisions of section 142(2A) of the Income-tax Act. No authority has been given to the Assessing Officer to direct the preparation of fresh books by referring the matter to an auditor under special audit. Audit is for the purpose of satis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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