Special audit power directs taxpayers to have records audited by nominated accountants, enabling officer review and potential compliance action.

An officer not below Deputy/Assistant Commissioner may direct a taxable person to have records audited by a chartered or cost accountant nominated by the Commissioner where valuation or input credit appears incorrect; the nominated auditor must submit a signed report within the prescribed period, extendable for sufficient reason. The special audit applies despite other audits; the taxable person must be heard before material is used in proceedings. Audit expenses and remuneration are determined and paid by the Commissioner. Detection of unpaid or wrongly claimed tax or input credit may trigger follow on compliance action.

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