Case Note & Summary
The petitioner, Atlas Copco (India) Limited, filed a writ petition challenging an order dated 11th November 2005 passed by the Assistant Commissioner of Income Tax, Range 4(1), Mumbai, directing a special audit under Section 142(2A) of the Income Tax Act, 1961 for the assessment year 2003-04. The petitioner contended that no opportunity of hearing was given before passing the order, which violated principles of natural justice. The court noted that a similar issue was already admitted in Writ Petition No.1314 of 2004, Maharashtra Distilleries Limited v. Deputy Commissioner of Income Tax, where the question was whether an opportunity of hearing is required before an order under Section 142(2A) is passed. The court decided to consider the matter finally at the admission stage and, after hearing the parties, admitted the writ petition. The court did not pass any interim order but directed that the petition be heard along with the connected matter. The judgment was delivered by a Division Bench of Justices R.M. Lodha and J.P. Devadhar on 7th March 2006.
Headnote
A) Income Tax - Special Audit - Section 142(2A) of Income Tax Act, 1961 - Natural Justice - The issue involved is whether before passing an order under Section 142(2A) directing special audit, an opportunity of hearing must be afforded to the assessee. The court admitted the writ petition as the same issue was already admitted in another writ petition (Maharashtra Distilleries Limited v. Deputy Commissioner of Income Tax). (Paras 1-3)
Issue of Consideration
Whether before passing an order under Section 142(2A) of the Income Tax Act, 1961 directing special audit, an opportunity of hearing needs to be given to the assessee.
Final Decision
The court admitted the writ petition and directed that it be heard along with the connected matter. No interim order was passed.
Law Points
- Natural justice
- pre-decisional hearing
- Section 142(2A) of Income Tax Act
- 1961
- special audit
- opportunity of hearing
