SADANA ELECTRIC STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) PRESENT appeal is filed by the assessee under Section 260 -A of the Income Tax Act, 1961 against the judgment and order dated 15.06.2007 passed by the Income Tax Appellate Tribunal, Lucknow in Income Tax Appeal No. 760 & 790/LUC/2005 for the assessment year 2001 -02.

(2.) ON 20.08.2008, a Coordinate Bench of this Court has admitted the instant appeal on the following substantial questions of law:

(3.) WITH this background, Sri S. K. Garg, learned counsel for the assessee submits that the notice under section 143 (2) was issued on 28.01.2002 and the time limit for completion of the scrutiny was due to expire on 31.03.2004. However, before completion of the assessment, the A.O. took a view that there are certain discrepancies. So, he referred the matter to the CIT (Central) Kanpur for seeking the approval to issue a direction for special audit under section 142 (2A) of the Act. He read out Section 142 (2A), which on reproduction, reads as under: