DCIT Vs Patanjali Ayurved Ltd. (ITAT Delhi)
ITAT Delhi held that order of special audit held to be void ab-initio since due procedure as mandated under the provisions of Sec. 142(2A) and Sec. 142(2C) of the Income Tax Act has not been followed.
Facts- The appellant is a Limited company, engaged in trading and manufacturing of Fast Moving Consumer Goods (FMCG). The appellant had filed its return of income on 15-10-2010 declaring total income at Rs. 28,57,69,730/-. Subsequently, a revised return was filed on 09-07-2011.
The case of the appellant was selected for scrutiny assessment. During the course of assessment proceedings, AO observed that as considerable details/evidences were not forthcoming and as the appellant was failing to file most of the details/evidences despite availing several opportunities, the AO having reasonable doubt about the correctness of accounts maintained by the appellant issued a show cause notice dated 13-03-2013 to the assessee to explain as to why special Audit u/s. 142(2A) of the Act, should not be conducted, keeping in view the nature and complexity of accounts. After consideration of the submissions of the appellant and after obtaining approval from’ the Ld. Commissioner of Income Tax vide letter dated 28.03.2013, the AO directed the appellant vide letter dated 30.03.2013 to get its account audited as required u/s 142(2A) of the Act.
