23 Nov NBCC India Ltd. v. Additional CIT
INCOME TAX : Notice issued in SLP filed against impugned order of High Court that where on queries raised by Assessing Officer regarding several issues such as interest passed on to clients, TDS deductions on advances made to a company for construction, reduction in sales turnover, etc., assessee failed to furnish necessary details and reconcile books of account, and several replies of assessee to queries of Assessing Officer revealed complexity in accounts of assessee, impugned notice for special audit under section 142(2A) was justified
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[2020] 120 taxmann.com 211 (SC)
SUPREME COURT OF INDIA
NBCC (India) Ltd.
v.
Additional Commissioner of Income Tax*
ROHINTON FALI NARIMAN AND S. RAVINDRA BHAT, JJ.
PETITION(S) FOR SPECIAL LEAVE TO APPEAL (C) NO. 4718 OF 2020
FEBRUARY 24, 2020
Section 142 of the Income-tax Act, 1961 – Inquiry before assessment (Special audit) – Assessment year 2017-18 – Assessee-company, engaged in business of construction, filed its return of income – Assessing Officer raised queries regarding several issues such as details of interest passed on to clients, TDS deductions on advances made to a company for construction, huge reduction in sales turnover during year, etc. – However, assessee had not submitted satisfactory reply to these queries and failed to produce its ledger, accounts and documents as called for – Thus, Assessing Officer passed an order for special audit under section 142(2A) – High Court by impugned order held that non-specific reply of assessee revealed complexity in accounts of assessee and raised doubts about correctness of transactions and lead Assessing Officer to seek further verification, thus, impugned order passed for a special audit under section 142(2A) was justified – An instant special leave petition (SLP) was filed by assessee against said order of High Court – Whether notice was to be issued in SLP filed by assessee against impugned order of High Court – Held, yes [Paras 1 and 2] [In favour of assessee]
CASE REVIEW
NBCC (India) Ltd. v. Additional Commissioner of Income-tax [2020] 116 taxmann.com 486 (Delhi) [Notice issued in SLP].
Arvind Datar, Sr. Adv., S. Krishnan, Adv. and Nagarkatti Kartik Uday, AOR for the Petitioner.
ORDER
1. Issue notice.
2. There shall be stay of the impugned order in the meantime.
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*In favour of assessee.
†Arising out of NBCC (India) Ltd. v. ACIT [2020] 116 taxmann.com 486
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