No Special Income Tax Audit Without Hearing: SC Clarifies Section 142(2A) Law

Sahara India (Firm) Vs CIT (Supreme Court of India) The Supreme Court considered whether a pre-decisional hearing is required before directing a special audit under Section 142(2A) of the Income Tax Act. The issue arose due to doubts expressed by a two-Judge Bench regarding the correctness of the earlier decision in Rajesh Kumar, which held that principles of natural justice must be followed before ordering a special audit. The Court examined the statutory framework of Section 142(2A) and related provisions. It noted that the Assessing Officer can order a special audit only if two conditions a...