Case Law Details

Case Name : India Yamaha Motor Private Limited Vs PCIT (Delhi High Court)
Appeal Number : W.P.(C) No. 10951/2021
Date of Judgement/Order : 29/09/2021
Related Assessment Year :

India Yamaha Motor Private Limited Vs PCIT (Delhi High Court)

Writ of India Yamaha Motor (P) Ltd., Hon’ble Delhi High Court has admitted the Writ and has stayed the operation of letter of direction and order for special audit u/s 142(2A) of the Income Tax Act, 1961, as the same were issued in violation of mandatory provisions of proviso to section 142(2A) of the Act based on the Principle of natural justice audi alteram partem Till further orders, there shall be a stay of the orders dated 19th August, 2021 as well as 28th July, 2021.

List on 30th January, 2022 along with W.P.(C) 1347/2020.

Auditor with magnifying glass and plate audit

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

Exemption allowed, subject to all just exceptions.

Accordingly, the present application stands disposed of.

W.P.(C) 10951/2021 & CM APPL. 33765/2021

Present writ petition has been filed challenging the direction dated 19th August 2021 issued to the Petitioner under section 142(2A) of the Income Tax Act, 1961 as well as the proposal purportedly sent by Respondents No. 2-7 to Respondent No.1 to seek prior approval. Petitioner also challenges the approval granted by Respondent No. 1 on 16th April 2021, letter dated 28th July 2021 issued by Respondents No. 2-7 for assignment of special auditor, terms of reference and the show cause notices issued for the purpose of special audit.

Learned counsel for the Petitioner states that the reply filed by the Petitioner on 28th March, 2021 was not considered by the Respondents before appointing the special auditor. He also states that in the present case a communication was sent to the special auditor vide letter dated 28th July, 2021, whereas the Petitioner was intimated of the decision to appoint a special auditor only on 19th August, 2021.

Issue notice. Mr. Ajit Sharma, learned counsel for the Revenue accepts notice. He prays for and is permitted to file a counter affidavit within four weeks. Rejoinder affidavit, if any, be filed before the next date of hearing.

Till further orders, there shall be a stay of the orders dated 19th August, 2021 as well as 28th July, 2021.

List on 30th January, 2022 along with W.P.(C) 1347/2020.

The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

Download Judgment/Order

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