https://www.taxtmi.com/caselaws?id=3592 SC held that orders directing special audit under s.142(2A) were vitiated for failure to afford a pre-decisional hearing, observing special audit is investigative and may have stigmatic civil consequences, thus engages audi alteram partem. Because Parliament thereafter inserted a proviso (with effect from 1 June 2007) requiring a hearing, the Court applied its ruling prospectively and declined to quash past proceedings; appellants may not rely on invalid audit orders to defeat extended limitation but may challenge materials derived from the audit in appeal. Appeals allowed to that extent; parties to bear their own costs. en-us Fri, 11 Apr 2008 00:00:00 +0530 Tue, 23 Sep 2025 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3592 SC held that orders directing special audit under s.142(2A) were vitiated for failure to afford a pre-decisional hearing, observing special audit is investigative and may have stigmatic civil consequences, thus engages audi alteram partem. Because Parliament thereafter inserted a proviso (with effect from 1 June 2007) requiring a hearing, the Court applied its ruling prospectively and declined to quash past proceedings; appellants may not rely on invalid audit orders to defeat extended limitation but may challenge materials derived from the audit in appeal. Appeals allowed to that extent; parties to bear their own costs. Case-Laws Income Tax Fri, 11 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3592