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TMI Blog2022 (6) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the assessee has to be given the opportunity of being heard before passing the order u/s 142(2A) of the Act. The Supreme Court thus held that if no show cause notice is given to the Assessee before passing orders under Section 142(2A) of the Act, the orders were vitiated by failure to observe the principles of natural justice. As held by the Supreme Court in the case of Rajesh Kumar, on account of the special audit, the assessee has to undergo the process of further accounting despite the fact that a qualified auditor has audited accounts in terms of section 44AB of the Act, who is a professional person and in case of misconduct liable to be proceeded against. The assessee has to pay the fees of the special auditor. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponded to the questionnaire and submitted the necessary books of accounts. Respondent No.1 issued further notice on 17 February 2005, for which the Petitioner sought time and filed an interim reply. On 29 March 2005, Respondent No.1 issued a notice under Section 142(2A) of the Act directing it to get its accounts for the assessment year 2002-03 audited through a Special Auditor - Respondent No.3. Being aggrieved by this order, the Petitioner filed the present Petition. 3. In this Petition, the notice was issued on 5 May 2005, and the interim relief in terms of prayer clause (c) was granted, i.e., restraining from proceeding further with the compulsory audit of the Petitioner's accounts pursuant to the impugned order. Thereafter, Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s already an existing legal position. The Supreme Court in the case of Rajesh Kumar and others vs. Deputy Commissioner of Income-Tax and ors. (2006) 287 ITR 91 (SC) while dealing with the position and orders passed prior to 1 June 2007 has observed that the requirement of hearing has to be read into the Section 142(2A) of the Act. The decision in the case of Rajesh Kumar was rendered by bench of two learned judges of the Supreme Court on 1 November 2006. When a similar case came up before another Bench of the two learned judges of the Supreme Court, the matter was referred to a larger bench by order dated 14 December 2006. The referring order stated that the case of Rajesh Kumar was in respect of assessments under Section 158BC (block a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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