2006 (7) TMI 181

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....peal as regular appeal. We have heard learned counsel for the appellant. The brief facts and circumstances in which this appeal has arisen are that a search took place on November 20, 1997, and notice under section 158BC was issued on September 7, 1998. In compliance with which, the assessee submitted a return on October 20, 1998, declaring undisclosed income of Rs. 2,44,000 for the block pe....

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....urpose for which the provision was enacted but merely for getting the extended period for completing assessment, which is not permissible under law. On the basis of this finding, the reference to the special audit was held to be illegal and consequently, the assessment order was held to be barred by time. There is no dispute about it that if the period reckoned for special audit which was directed....

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....ch were recorded in the regular books of account and further to determine the undisclosed income of the block period. Apparently the order was for preparing fresh books rather than to conduct a special audit. This was on the face of it beyond the scope of provisions of section 142(2A) of the Income-tax Act. No authority has been given to the Assessing Officer to direct the preparation of fresh ....