| Case ID |
14ad4442-6860-4bb4-a27c-effcdbc4824a |
| Body |
View case body. Login to View |
| Case Number |
O. P. Nos. 11369 and 18247 of 1995-S |
| Decision Date |
Jul 16, 1996 |
| Hearing Date |
|
| Decision |
The Kerala High Court addressed the powers of the Assessing Officer under section 142(2A) of the Income Tax Act, 1961, specifically regarding the direction for a special audit. The court concluded that the Assessing Officer could issue such a direction only when proceedings were pending. The court also examined the validity of the audit conducted under this section and the implications of findings from such an audit if it were deemed unauthorized. The case involved the determination of the timeline for completing assessments, particularly whether the Tribunal was correct in finding that the assessment was barred by limitation. The judgment emphasized the necessity for proper legal authority when invoking audit provisions and clarified the conditions under which materials obtained from an audit could be utilized against the assessee, reaffirming the principles established in previous case law. |
| Summary |
In the landmark case of O. P. Nos. 11369 and 18247 of 1995-S, the Kerala High Court examined critical issues surrounding the powers of the Income Tax Officer under section 142(2A) of the Income Tax Act, 1961. The case arose from a dispute regarding the legitimacy of a special audit directed by the Assessing Officer. The court's decision centered on whether such directions could be issued only in the presence of pending proceedings. The ruling also touched upon the limitation period for assessment completion and the legal consequences of findings from an unauthorized audit. This case is significant for tax professionals and legal practitioners as it clarifies the procedural requirements for conducting audits and the legal ramifications of non-compliance with these requirements. The decision serves as a precedent in interpreting the Income Tax Act, specifically regarding audit directives and the authority of tax officials. Keywords such as 'Income Tax Act', 'special audit', 'Assessing Officer', and 'legal authority' are crucial for understanding the implications of this case in the broader context of tax law. |
| Court |
Kerala High Court
|
| Entities Involved |
Not available
|
| Judges |
V. V. KAMAT,
P. A. MOHAMMED
|
| Lawyers |
P. K. R. Menon,
N. R. K. Nair,
C. Kochunni Nair,
M. A. Firoz,
Dale P. Kurian
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
N. C. JOHN & SONS LTD
|
| Citations |
1999 SLD 545,
1999 PTD 3617,
(1998) 230 ITR 326
|
| Other Citations |
Pooran Mal v Director of Inspection (Investigation) (1974) 93 ITR 505 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
142(2A),
256,
153(3),
256(2)
|