Direction for Special Audit (Audit by department) - Section 142(2A) to (2D)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of such audit or such inventory valuation  in the prescribed form duly signed and verified by such accountant and setting forth such particulars, as may be prescribed, and such other particulars as the Assessing Officer may require, Such a decision may be taken by the AO, if regard to the following :- • The nature and complexities involved in accounts or • Volume of the accounts; or • Doubts about the correctness of the accounts; or • Multiplicity of transactions in the accounts; or • Specialized nature of business activity of the assessee; and • It is in the interest of the revenue to get the special audit done. • Such Direction can be issue w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... persons referred to in the Explanation to section 288(2); and • (ii) cost accountants, out of the persons referred to in the Explanation to section 142. [ Rule 14B(1) ] • Where the Assessing Officer directs  • (i) for audit u/s 142(2A)(i) on or after the 1st day of June, 2007; or • (ii) for inventory valuation u/s 142(2A)(ii) on or after the 1st day of April, 2023, • Where the direction for special audit or inventory valuation is issued by the Assessing officer, the expenses of and incidental to such special audit or inventory valuation, including remuneration of the accountant or cost accountant shall be determined by the Principal chief commissioner or c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of the revenue. Such object may or may not be achieved by the audit contemplated by section 44AB. 4. Direction can be given even if A/c's already audited u/s 44AB or any other law. [ Section 142(2B) ] Every report under sub-section (2A) shall be furnished by the assessee to the Assessing Officer within such period as may be specified by the Assessing Officer. [ Section 142(2C) ] 5. Time Limit - Audit report has to be submitted within time allowed by AO which can be extended by the AO may, suo motu, or on an application made in this behalf by the assessee but maximum time must not exceed 180 days from the date on which direction under section 142(2A) is received by the assessee. 6. Special audi....