Special Audit justified If Assessee follows Complex Accounting System

Patanjali Ayurveda Ltd Vs DCIT (Delhi High Court) CONCLUSION – When AO finds the accounts of the assessee to be complex and in order to protect the interest of the revenue, it is justifiable to direct for special audit. FACTS – Petitioner filed return in July, 2011 and the return was picked for scrutiny. On 28.03.2013, AO passed the order directing special audit. Out of total 9 points, the main reason pointed out for direction of the special audit was that the petitioner was maintaining accounts of imprest with various persons. It was observed by AO that accounts were maintained on the mer...