The Tax Publishers2020 TaxPub(DT) 4865 (Ind-Trib) : (2021) 087 ITR (Trib) 0675


Section 142(2A) Section 142(2c), Proviso Section 143(3)

As AO is having power under proviso to section 142(2c) to extend date of submission of special audit report submitted on 23-5-2014 and consequently passing of order of assessment on 7-7-2014 was well within limitation period.

Assessment - Extention of date of special audit report - Limitation -

As per the order of the AO, Special Auditor was to submit the report latest by 15-4-2014. On 23-4-2014, request was made by the Special Auditor to AO for extending time limit which was accepted and time was extended to 15-5-2014. Through a letter, dated 15-5-2014 along with the Audit Report under section 142(2A) dated 15-5-2014 was submitted to the Income Tax Department. The receipt by the Department was shown as 23-5-2014. The assessment under section 143(3) was completed on 7-7-2014. In the light of above facts, assessee had contended that firstly the Special Auditor did not apply for extention of time for submitting the report before 15-4-2014. Secondly, the time was extended to 15-5-2014 and report was submitted on 23-5-2014 which was delayed. Since till this date, no extension was applied the assessment ought to have been completed latest by 14-6-2014, i.e., within two months from 15-4-2014. Since the limitation for passing of the order was expired on 14-6-2014, the impugned assessment order, dated 7-7-2014 was barred by limitation. Held: Power is vested with the AO which he, either on the application of the assessee or suo moto, can extend the time period up to 180 days. In the instant case, the assessee had not approached for extension of time period. It was only between the AO and the Special Auditor that there was a communication of extension of time period. AO had acted well within his power and extended the time period and subsequently accepted the Special Audit Report dated 23-5-2014 and further completed the assessment under section 143(3) within two months from the date of receipt of Special Audit Report. Therefore there was no reason to interfere in the findings of CIT(A) and therefore, no merit was found in Ground raised by the assessee.


FAVOUR : Against the assessee.

A.Y. : 2011-12


Section 145(3)


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