Legal opinions from Special Auditor can be sought by the Assessing officer u/s 142(2A) of the Income Tax Act

Last updated: 27 August 2021

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The Gujarat High Court ruled that Assessing Officers can direct assessees to undergo a special audit under Section 142(2A) of the Income Tax Act. This is permissible even if the special auditor's work involves investigation, as the final decision rests with the Assessing Officer. The court clarified that the scope of a special audit extends beyond mere verification to include explanations and clarifications required by the auditor.

Court :
Gujarat High Court

Brief :
In Dishman Infrastructure Limited v. The Assistant Commissioner of Income Tax, Central Circle (2) [R/SPECIAL CIVIL APPLICATION NO. 7618 of 2021 With R/SPECIAL CIVIL APPLICATION NO. 7620 of 2021 dated August 19, 2021], Dishman Infrastructure Limited ('the Petitioner') has challenged the Order dated April 22, 2021 passed by the Assistant Commissioner of Income Tax ('the Respondent') wherein the Respondent has directed the Petitioner to get their books of accounts audited by the Chartered Accountant nominated by the Principal, CIT (Central-1), Ahmedabad.

Citation :
R/SPECIAL CIVIL APPLICATION NO. 7618 of 2021 With R/SPECIAL CIVIL APPLICATION NO. 7620 of 2021 dated August 19, 2021

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