Non-Delegability of Discretionary Powers in Income Tax Assessments: Administrative Discretion in Special Tax Audit Procedures u/s 142

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....rt, revolves around the interpretation of provisions of the Income Tax Act, 1961 (the Act), specifically related to the extension of time for submitting an audit report under Section 142(2A) and its impact on the assessment order's validity. The central legal issue pertains to whether the extension granted to a Chartered Accountant for audit report submission was in consonance with the proviso....

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....nsion under Section 142(2C): The primary legal contention revolves around the extension of time for audit report submission. The provisions of Section 142(2A) and 142(2C) are central to this discussion. * The Assessing Officer (AO) has the power to direct an audit and extend the timeframe for submitting the audit report. This power must be exercised considering the nature and complexity of the a....

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....ry power vested in a specific authority (here, the AO) should be exercised by that authority alone. * Assessment Order's Validity: * The legal validity of the assessment order hinges on whether the extension was lawfully granted. * If the extension granted was not in line with the provisions, the assessment order would be barred by limitation, rendering it invalid. Conclusions and Imp....