Special audit was invalid in absence of opportunity of hearing given to assessee

PCIT Vs Vilson Particle Board Industries Ltd (Bombay High Court)

Conclusion: Since there was a statutory requirement that AO had to provide reasonable opportunity of hearing to the assessee before directing the assessee to get the accounts audited under section 142(2A), therefore, in the absence of pre-decisional hearing, the decision to have special audit was, therefore, invalid and consequentially all the proceedings conducted thereafter stood vitiated.

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