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Assessment — Limitation — Special audit — Appointment of special auditor extending end date for framing assessment order — Special auditor seeking extension of time for submission of report — AO forwarding request letter with recommendation to Commissioner — Commissioner granting extension of time — Discretion to extend time frame solely with AO — Discretionary power vested in AO not delegable, cannot be exercised by Commissioner.

By K B Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

10 Principal CIT vs. Soul Space Projects Ltd.

[2024] 460 ITR 642 (Del.)

A.Ys.: 2007–08 and 2008–09

Date of order: 11th December, 2023

Ss. 142(2A), 142(2C) and 153B of the ITA 1961

Assessment — Limitation — Special audit — Appointment of special auditor extending end date for framing assessment order — Special auditor seeking extension of time for submission of report — AO forwarding request letter with recommendation to Commissioner — Commissioner granting extension of time — Discretion to extend time frame solely with AO — Discretionary power vested in AO not delegable, cannot be exercised by Commissioner.

Pursuant to search operations at the premises of the assessee, the Assessing Officer issued a notice u/s. 153A of the Income-tax Act, 1961. Thereafter, the AO issued a show-cause notice to the assessee seeking its response to have a special audit

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