2017 (4) TMI 918 - HC - Income Tax

Special audit - Powers of AO prior to amendment in Section 142 (2C) with effect from 1st April 2008, to suo motu extend the time limit for the special auditor to submit his report in terms of Section 142 (2A) Held that - It is not in dispute that said question stands answered in favour of the Assessee and against the Revenue by the decision of this Court in Commissioner of Income Tax v. Bishan Saroop Ram Kishan Agro (P) Ltd (2011 (5) TMI 540 - DELHI HIGH COURT ) wherein held the amendment whereby the word suo motu were inserted in sub section (2C) of Section 142 was to be applicable with effect from 1st April, 2008 only, the amendment cannot be said to be clarificatory or retrospective in nature. The amendment was prospective and was to be applicable with effect from 1st April, 2008 only - Decided against the revenue.

Summary

The Delhi High Court dismissed appeals against a common order passed by the Income Tax Appellate Tribunal for the Assessment Years 1996-97 to 2001-2002. The issue was about the powers of the Assessing Officer to extend the time limit for a special auditor's report. The court ruled in favor of the Assessee based on a previous decision. No substantial question of law arose, and the appeals were dismissed.