No special audit if CIT grants approval mechanically to extend limitation period

Rosy Blue (India) Pvt. Ltd. Vs DCIT (ITAT Mumbai) Conclusion: Since AO had taken recourse to the provisions of section 142(2A) only with a view to extend the period of limitation by virtue of clause (iv) of Explanation 1 to section 153(9) for completion of assessment, without the conditions being satisfied in section 142(2A), therefore, the assessment framed by AO under section 143(3) was barred by limitation and invalid. Held: The issue raised in assesse’s appeal was against the order of CIT(A) upholding the exercise of jurisdiction under section 142(2A) by AO by directing Special Audit...