Special audit remuneration must follow the prescribed scale and relevant factors, not an alleged agreement alone.

Remuneration for a special audit under section 142(2D) must be determined by the Commissioner by independently applying the Institute's prescribed scale and the relevant audit factors, and that basis must be fixed before or at the time the audit is assigned. The fee cannot be left to open-ended post-audit discretion or founded only on an alleged mutual agreement. Because the Department had earlier proceeded on the Institute's scale, and the alleged lower consent had been withdrawn before the impugned orders, the Commissioner's reliance solely on meeting minutes was unsustainable. The remuneration was therefore required to be redetermined in accordance with the statutory scheme.

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Issues: Whether the remuneration for a special audit under section 142(2D) could be fixed merely on the basis of an alleged mutual agreement with the assessee without the Commissioner independently applying the scale prescribed by the Institute and the relevant factors.

Analysis: The statutory scheme requires the Chief Commissioner or Commissioner to determine the expenses and remuneration for a special audit, and that determination is final. The remuneration or the basis for its computation must be fixed before or at the time the audit is assigned, so the auditor knows the fee structure and the authority cannot leave the matter to an open-ended post-audit discretion. Once the Department had earlier proceeded on the basis that the fee would follow the Institute's scale, and the petitioner had withdrawn any alleged consent to a lower figure before the impugned orders were passed, the Commissioner could not rest the determination solely on the alleged minutes of the meeting. The impugned orders also showed no application of mind to the Institute's scale, the nature of the work, or the composition and effort involved in the audit.

Conclusion: The remuneration could not lawfully be fixed solely on the basis of the alleged mutual agreement, and the Commissioner was required to redetermine it by applying the Institute's scale and the relevant audit factors.

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