TaxTMI 
TaxTMI 
2017 (5) TMI 1402
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.... dated March 10, 2016 directs the petitioner to subject its accounts to special audit for the assessment years 2008-09 to 2014-15. 2. The petitioner is a trader in shares dealing in capital and derivative segments. The petitioner has consequent to a search action of section 132 of the Act, filed its return of income under section 153A of the Act for the assessment years 2008-09 to 2013-14 and under section 139(1) for the assessment year 2014-15. The last date to complete the assessment under section 153A of the Act is March 31, 2016. The impugned order dated March 10, 2016, has admittedly been passed after issuing a notice and hearing the petitioner. 3. However, the grievance of the petitioner is that the impugned order is without jurisdi....
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....directed only to secure more time to pass an order of assessment is concerned, we find there is nothing in the Act which prohibits the Assessing Officer from ordering/directing the special audit after a particular date before the last date of framing an assessment. An Assessing Officer can direct a special audit as and when he does come to the conclusion that the accounts of the assessee are required to be specially audited for any one of the reasons set out in section 142(2A) of the Act. Thus, this grievance is not sustainable. 6. So far as the second grievance with regard to not directing the special audit of the accounts of the petitioner's wife and family members is concerned, we find that is an irrelevant consideration while consi....
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....it stands belied by the fact that the show-cause notice dated July 25, 2016, issued to the petitioner, in fact, indicated the basis for directing special audit on the basis of the volume of the total trades executed by the petitioner, multiplicity of transactions in the accounts, including the nature and complexity of the accounts and doubts about the correctness of the accounts. Therefore, this grievance is also without substance. 8. The fourth grievance of the petitioner is that the terms of reference indicates that the special auditor has also been asked to prepare accounts and therefore bad in law, is unjustified. Section 142(2A) of the Act empowers the Assessing Officer while directing a special audit to furnish audit report in the pr....