Section 142 of the Income-tax Act, 1961 - Inquiry before assessment

IT: Where revenue failed to indicate complexity in accounts of assessee-company, order appointing special auditor to audit assessee's account was unjustified
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[2015] 53 taxmann.com 144 (Bombay)
HIGH COURT OF BOMBAY
Nickunj Eximp Enterprises (P.) Ltd.
v.
Assistant Commissioner of Income-tax, Range 1(2)*
M. S. SANKLECHA AND N. M. JAMDAR, JJ.
WRIT PETITION NO. 2798 OF 2012
SEPTEMBER  30, 2014
Section 142 of the Income-tax Act, 1961 - Inquiry before assessment (Special Audit) (Books of account) - Assessment year 2009-10 - Whether where revenue did not indicate any reasons why accounts of assessee-company were found complex for relevant year, non-furnishing of reasons would cause prejudice to assessee, which would lead to breach of principles of natural justice - Held, yes - Whether, therefore, order appointing special auditor to audit assessee's account was unjustified - Held, yes [Para 5] [In favour of assessee]