Case Law Details
PCIT Vs Micro And Small Enterprise Facilitation Council And Anr. (Delhi High Court)
Delhi High Court held that in respect of Special Audit remuneration under section 142(2D) of the Income Tax Act invocation of provisions of MSMED Act not tenable and completely misplaced. Accordingly, the Income Tax Act would thus prevail over the provisions of the MSMED Act.
Facts- The Petitioner, the Principal Commissioner of Income Tax, Central-1, has filed the writ petitions challenging the directions for reference to arbitration passed by the Respondent No. 1, the Micro & Small Enterprise Facilitation Council ( ‘MSEFC’) – an authority established u/s. 20 of the MSMED Act. Respondent No. 2, M/s SBG & Co. is a partnership firm of Chartered Accountants (CA Firm) of which Mr. S.B. Gupta is a Partner. The said CA Firm is also registered as a `Micro Enterprise’ under the provisions of the MSMED Act.
The CA Firm, being on the panel of the Income Tax Department (IT Department), was nominated as a Special Auditor by the IT Department in four cases for carrying out Special Audit in terms of Section 142(2A) of the IT Act.
After the completion of the said Special Audit assignments and the submission of the final audit reports, the CA Firm raised four invoices in respect of the said audits. The grievance of the Special Auditor- CA Firm is that qua the invoices raised, the full payment has not been made.
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