INCOME TAX ACT, 1961

Sections 142(2A), 142(2C)

Assessment - Special audit under section 142(2A) - Validity of extension for furnishing special audit report granted by Commissioner, central inspect of AO -

Commissioner (Central)--II, New Delhi granted extension of 60 days to special auditors for furnishing audit report under section 142 (2A). AO conveyed the approval to such extension. Assessee challenged this on the ground of improper excersice of jurisdiction by commissioner, central-II. Held: A power which has been given to a specified authority has to be discharged only by him. Substitution of that officer/authority by any other officer, may be of higher rank, cannot validate said order/action. The extension to special auditors could have been valid only if it had been given by AO after due application of mind and after examining the existence of circumstances as provided in proviso below section 142 (2C), since, it had to be given only by competent authority. However, the extension had not been given by AO but by Commissioner, Central-II and AO had only conveyed the approval and therefore, extension given by Commissioner, Central-II was beyond the powers vested as per statute and thus vitiatied the proceedings thereof.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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