The Tax Publishers2021 TaxPub(DT) 0010 (Chd-Trib) : (2020) 084 ITR (Trib) 0307

INCOME TAX ACT, 1961

Section 142(2A)

AO had noted that there were 599 trucks in relation to which freight payments were made and all the documents pertaining to it had different particulars noted therein. While some Forms 15-I were unsigned or signed by father of the truck owners, vouchers making payment were signed by different persons whose only detail mentioned was name and nothing else. Even payments were not made in one go but in parts and each time to a different person. No record of who actually received payment was maintained. Accordingly, there was complexity in the accounts of assessee and therefore, reference made for special audit was justified.

Assessment - Reference for special audit under section 142(2A) - Complexity in accounts of assessee -

AO in his order detailed discrepancies noted by him on examining the assessee's documents relating to said expenses, i.e., the GRs, the vouchers of payments made to truck owners and Form 15-I submitted by the truck owners for purposes of assessee claiming exemption from tax deduction at source on the freight payment, which led to him being satisfied that the accounts were complex and required special audit. Accordingly, reference for special audit was made by AO in the context of freight expenses claimed by assessee on which no TDS had been deducted. Assessee challenged the reference for special audit in alleging absence of any complexity in the accounts pointed out by AO which being pre-requisite for making such reference as per section 142(2A). Held: AO had noted that there were 599 trucks in relation to which freight payments were made and all the documents pertaining to it had different particulars noted therein. While some Forms 15-I were unsigned or signed by father of the truck owners, vouchers making payment were signed by different persons whose only detail mentioned was name and nothing else. Even payments were not made in one go but in parts and each time to a different person. No record of who actually received payment was maintained. Accordingly, there was complexity in the accounts of assessee and therefore, reference made for special audit was justified.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2007-08


INCOME TAX ACT, 1961

Section 194C

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