TaxTMI 
TaxTMI 
2012 (8) TMI 546
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.... purchases made from 11 parties were bogus. Even though the books of account were audited, it was stated that the findings recorded during the course of assessment proceedings for the assessment year 2008-09 and the material impounded during the survey indicate a similar state of affairs for other assessment years starting from the assessment year 2005-06. More- over, it was stated that additions have been made on the issue of bogus purchases even in the assessment year 2001-02. Accordingly, notices were issued under section 148 on December 7, 2010, for the assessment years 2005-06, 2006-07 and 2007-08 and assessment proceedings were pending for those assessment years. In these facts and in view of the discrepancies in the audited accounts,....
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.... indicated that the assessee had claimed to have purchased goods from several parties, entries relating to which were deleted, but retrieved during the survey. Verification of the data impounded during the survey proceedings pertaining to the assessment years 2005-06 to 2010-11 showed that purchases from many suppliers were found to be bogus. These aspects were discussed in the order passed by the Assessing Officer under section 143(3) for the assessment year 2008-09. The direction is thus principally based on the material which was brought out in the course of the survey proceedings and the subsequent enquiries during the assessment proceedings for the assessment year 2008-09. Counsel, appearing on behalf of the petitioner, submi....
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....d the proceedings back for verification and for finding out the details of the alleged purchases. The matter is stated to be pending before the Commissioner of Income-tax (Appeals) upon remand by the Tribunal ; (iii) for the assessment year 2009-10, a return was filed. After carrying out a scrutiny notice was issued under section 142(1) on July 8, 2011. On these facts it was urged that the jurisdictional condition in section 142(2A) has not been fulfilled. It was urged that the Assessing Officer has not entered any finding that having regard to the nature and complexity of the accounts of the assessee, it was necessary to order an audit under the statutory provision in question. On the other hand, counsel appearing on behalf of....
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.... special audit under section 142(2A). A recourse cannot be taken to the provisions contained there lightly and without due fulfilment of the statutory requirements. In these circumstances, we are of the view that it would be appropriate to set aside the impugned order dated November 17, 2011, and to direct a fresh consideration by the Assessing Officer of the objections which have been raised by the assessee. We may also note that as a result of the proviso which was inserted into the provisions of section 142(2A) by the Finance Act of 2007, with effect from June 1, 2007, it has been provided that the Assessing Officer shall not direct the assessee to get the accounts so audited unless the assessee has been given a reasonable opportunity of....