https://www.taxtmi.com/caselaws?id=6548 A direction for special audit under section 142(2A) of the Income-tax Act, 1961 carries civil consequences, so the principle of audi alteram partem is ordinarily implied unless expressly excluded; the assessee was therefore entitled to a prior hearing, and the direction failed for want of natural justice. The power also had to rest on objective satisfaction about the nature and complexity of the accounts and the interests of the Revenue, with informed and meaningful approval by the Commissioner; a mechanical or capricious exercise was impermissible. On both grounds, the special-audit direction was set aside. en-us Wed, 01 Nov 2006 00:00:00 +0530 Wed, 17 Sep 2025 14:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6548 A direction for special audit under section 142(2A) of the Income-tax Act, 1961 carries civil consequences, so the principle of audi alteram partem is ordinarily implied unless expressly excluded; the assessee was therefore entitled to a prior hearing, and the direction failed for want of natural justice. The power also had to rest on objective satisfaction about the nature and complexity of the accounts and the interests of the Revenue, with informed and meaningful approval by the Commissioner; a mechanical or capricious exercise was impermissible. On both grounds, the special-audit direction was set aside. Case-Laws Income Tax Wed, 01 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6548