Rajesh Kumar & Ors. v. Dy. CIT& Ors.
INCOME TAX ACT, 1961
Assessment - Special audit under section 142(2A) -Legality of directions
Held: Due to an action on part of statutory authority, civil or evil consequences ensue, then principles of natural justice were required to be followed and though no express provision was laid down in this behalf, but Compliance of principles of natural justice would be implicit. Since, Deputy Commissioner passed order under section 142(2A) without giving an opportunity of hearing to assessee for auditing of books of account of assessee and refused to hear assessees request for supply of reasons thereof, hence, action of Deputy Commissioner was vitiated in law.
Income-tax Act, 1961, Section 142
Decision: In favour of assessee.
Case Law Analysis:S.N. Mukherjee v. Union of India [1990] 4 SCC 594 [Para 17], Reliance Industries Ltd. v. Designated Authority AIR 2006 SCW 4911 [Para 17], Rajpur Development Authority v. Chokhamal Contractors [1989] 2 SCC 721 [Para 18], Rajendra Construction Co. v. Maharashtra Housing & Area Development Authority [2005] 6 SCC 678 [Para 18], State of Orissa v. Dr. (Miss) Binapani Dei AIR 1967 SC 1269 [Para 22], Swadeshi Cotton Mills Co. Ltd. v. CIT [1988] 171 ITR 634/[1987] 32 Taxman 271 (All.) [Para 23], Peerless General Finance & Investment Co. Ltd. v. Dy. CIT [1999] 236 ITR 671 (Cal.) [Para 25], West Bengal Co.-op. Bank Ltd. v. Jt. CIT [2004] 267 ITR 345/ 138 Taxman 238 (Cal.) [Para 25], Bata India Ltd. v. CIT [2002] 257 ITR 622/ 125 Taxman 808 (Cal.) [Para 25], Jt. CIT v. I.T.C. Ltd. [1999] 239 ITR 921/ 106 Taxman 373 (Cal.) [Para 25], Muthouttu Mini Kuries v. Dy. CIT [2001] 250 ITR 455/ 115 Taxman 216 (Ker.) [Para 25]