Special Audit u/s 14AA - Principles of Natural Justice - In ...
Central Excise
February 10, 2021
Special Audit u/s 14AA - Principles of Natural Justice - In interpreting Section 142 (2A) of the Income Tax Act, 1961, the Supreme Court had held that a special audit is more or less in the nature of an investigation and in some cases may even turn out to be stigmatic. In any event, even if the obligation to pay the auditor’s fee is taken over by the Central Government, still civil consequences would ensue on the passing an order for special audit. Ordinarily, a post decisional hearing is no substitute for a pre-decisional hearing. - the Courts have categorically and repeatedly held that it is important to give an assessee a right of hearing before any order under Section 14AA is passed. - HC
View Source
