Prior hearing before special audit under income-tax law is mandatory, and failure to hear the assessee vitiates the direction.

A special audit direction under section 142(2A) of the Income-tax Act could not be sustained because the assessee was not given a prior opportunity of hearing. The document states that such pre-decisional hearing is mandatory before invoking the special audit power, and failure to afford it vitiates the order. The special audit direction was therefore set aside, and the matter was remitted to the assessing officer for fresh decision in accordance with law.

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Issues: Whether an order directing special audit under section 142(2A) of the Income-tax Act, 1961 could be sustained when no opportunity of hearing was afforded to the assessee.

Analysis: The assessment order directing special audit was passed without giving the assessee an opportunity to be heard. The requirement of prior opportunity before invoking section 142(2A) had already been recognised as mandatory, and the absence of such opportunity vitiated the order.

Conclusion: The special audit order was set aside and the matter was remitted to the assessing officer for fresh decision in accordance with law.

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