| Case ID |
eb9fda5c-dfed-4bea-9bc3-3c69ea2f24d0 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No. 4582 of 1999 |
| Decision Date |
Aug 08, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the High Court's dismissal of the writ petition filed by the assessee against an order under section 142(2A) of the Income Tax Act, 1961, which directed a special audit of the appellant's accounts. The Court noted that the complexity of the accounts warranted such an audit, as the appellant had submitted voluminous details that supported the assessing authority's decision. The Court found no merit in the appellant's argument regarding the assessment being time-barred and concluded that the order for special audit was justified based on the nature and complexity of the records provided by the appellant. The appeal was dismissed with costs. |
| Summary |
In the case of LIVING MEDIA LTD vs. COMMISSIONER OF Income Tax, the Supreme Court of India addressed the validity of an order directing a special audit under section 142(2A) of the Income Tax Act, 1961. The case involved a thorough examination of the complexities surrounding the financial records of the appellant, LIVING MEDIA LTD. The Court emphasized the importance of the assessing authority's discretion in determining the necessity of a special audit, particularly in cases where the accounts are voluminous and intricate. The appellant's submission of extensive documentation, totaling over 1,500 pages, was a significant factor in the Court's decision. The Supreme Court affirmed the High Court's ruling, reiterating that the order for a special audit was not only appropriate but essential given the circumstances. This case highlights the judiciary's stance on ensuring thorough scrutiny in tax matters, reinforcing the provisions of the Income Tax Act that allow for special audits when warranted. The decision serves as a precedent for future cases involving the complexity of financial records in tax assessments, emphasizing the balance between taxpayer rights and the need for rigorous auditing standards. |
| Court |
Supreme Court of India
|
| Entities Involved |
COMMISSIONER OF Income Tax,
LIVING MEDIA LTD
|
| Judges |
S. P. BHARUCHA,
Y. K. SABHARWAL,
BRIJESH KUMAR
|
| Lawyers |
M.L. Verma,
Kailash Vasudev,
Ms. V.D. Khanna,
B.B. Ahjua,
Pritesh Kapur,
B.V. Balram Das,
Ms. Sushma Suri
|
| Petitioners |
LIVING MEDIA LTD
|
| Respondents |
COMMISSIONER OF Income Tax and another
|
| Citations |
2004 SLD 220,
2004 PTD 2174,
(2002) 255 ITR 268,
(2003) 87 TAX 263
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
142(2A)
|