Delhi Development Authority and Another v. Union of India and Another

350 ITR 432High Court2013#8427 most cited

What is Delhi Development Authority and Another v. Union of India and Another authority for?

An Assessing Officer cannot delegate their powers and functions to a special auditor or chartered accountant under Section 142(2A) of the Income Tax Act. Scrutinizing and verifying entries is within the Assessing Officer's own purview and does not necessitate engaging external professionals for the audit.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2018 to 2023.

Also referred to as

Delhi Development Authority vs Union of India · Section 142(2A) · special audit · delegation of powers · Assessing Officer · scrutiny of entries · verification of accounts · Income Tax Act

Judgments citing Delhi Development Authority and Another v. Union of India and Another

Jt CIT (OSD), CC-3(1), Mumbai vs. Vallabhbhai Parsottambhai Surani, Surat

In the result, appeal filed by the Revenue is dismissed

ITA 498/MUM/2021[2007-08]Status: DisposedITAT Mumbai15 Sept 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon'Blejt. Commissioner Of Income Tax (Osd) V. Vallabhbhai Parsottambhai Surani Central Circle – 3(1) 1, Sundaram Bunglow Room No. 1924, 19Th Floor Lambe Hanuman Road Air India Building, Nariman Point Opp. Saiffe Society Mumbai – 400 021 Gujrat - 395006 Pan: Ajyps2262F (Appellant) (Respondent) C.O. No.164/Mum/2021 [Arising Out Of Ita No. 498/Mum/2021 (A.Y: 2007-08)] Vallabhbhai Parsottambhai Surani V. Jt. Commissioner Of Income Tax (Osd) 1, Sundaram Bunglow Central Circle – 3(1) Room No. 1924, 19Th Floor Lambe Hanuman Road Air India Building, Nariman Point Opp. Saiffe Society Mumbai – 400 021 Gujrat - 395006 Pan: Ajyps2262F (Appellant) (Respondent) Assessee Represented By : Shri Bharat Kumar Department Represented By : Dr. Mahesh Akhade

Section 132Section 139(1)Section 142Section 143(3)Section 153A

…explained as to how the special audit was in the interest of the revenue. He submitted that matter was referred to special audit just to buy further time to complete assessment. 34. Ld AR submitted that in the case of Delhi Development Authority and Another (350 ITR 432), the Hon’ble Delhi High Court has observed Page No.17 C.O.No. 164/MUM/2021 Vallabhbhai Parsottambhai Surani that the conditions stipulated in the section are cumulative. Therefore, it was reiterated that the plain language of the provision indicates that in order to make a reference for special audit under section 142(2A) of the Act, certain es…

Shri Anil Kumar, Ghaziabad vs. DCIT, Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 2895/DEL/2016[2010-11]Status: DisposedITAT Delhi27 Jan 2023AY 2010-11

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kedia

For Appellant: Shri Akhilesh Kumar, AdvFor Respondent: Shri Kanav Bali, Sr.DR
Section 142Section 142(1)Section 143(3)Section 56(2)Section 56(2)(vii)Section 68

…aragraphs, the ld. counsel placed reliance upon the judgment rendered in the case of Sahara India Firm vs. Commissioner of Income Tax (2008) 300 ITR 403 (SC); Rajesh Kumar vs. PCIT (2006) 287 ITR 491 (SC); Delhi Development Authority vs. Union of India (2013) 350 ITR 432 (Del); Kaka Carpets vs. CIT (2014) 43 taxmann.com 198 (Alld); Prateek Resorts and Builders Pvt. Ltd. vs. ACIT (2011) 9 taxmann.com 144 (All.); Gauri Pati Udyog vs. ITO order dated 29.05.2015 (All.); Smt. Srilekha Damani vs. DCIT in ITA No.4061/Mum/2012 order dated 19.08.2015. 5.5 The Ld. Counsel thus submitted in conclusion that the limitation pe…

Sh. S.L. Arora, Mohali vs. DCIT, Chandigarh

In the result, the appeals of the assessee bearing

ITA 275/CHANDI/2014[2006-07]Status: DisposedITAT Chandigarh30 Dec 2022AY 2006-07

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadav

Section 142Section 153

…e judgment of Hon’ble High I.T.A. No.1325,1326,1421/CHANDI/2010 I.T.A. No.274,275/CHANDI/2014 Shri Rajiv Kumar Shri Sohan Lal Arora Assessment Year: 2006-07 Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the sp…

Sh. Rajiv Kumar, Mohali vs. DCIT, Chandigarh

In the result, the appeals of the assessee bearing

ITA 274/CHANDI/2014[2006-07]Status: DisposedITAT Chandigarh30 Dec 2022AY 2006-07

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadav

Section 142Section 153

…e judgment of Hon’ble High I.T.A. No.1325,1326,1421/CHANDI/2010 I.T.A. No.274,275/CHANDI/2014 Shri Rajiv Kumar Shri Sohan Lal Arora Assessment Year: 2006-07 Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the sp…

DCIT, Chandigarh vs. Sh. S.L. Arora, Mohali

In the result, the appeals of the assessee bearing

ITA 1421/CHANDI/2010[2006-07]Status: DisposedITAT Chandigarh30 Dec 2022AY 2006-07

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadav

Section 142Section 153

…e judgment of Hon’ble High I.T.A. No.1325,1326,1421/CHANDI/2010 I.T.A. No.274,275/CHANDI/2014 Shri Rajiv Kumar Shri Sohan Lal Arora Assessment Year: 2006-07 Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the sp…

Sh.Sohan Lal Arora, Mohali vs. ACIT, Chandigarh

In the result, the appeals of the assessee bearing

ITA 1326/CHANDI/2010[2006-07]Status: DisposedITAT Chandigarh30 Dec 2022AY 2006-07

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadav

Section 142Section 153

…e judgment of Hon’ble High I.T.A. No.1325,1326,1421/CHANDI/2010 I.T.A. No.274,275/CHANDI/2014 Shri Rajiv Kumar Shri Sohan Lal Arora Assessment Year: 2006-07 Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the sp…

Sh. Rajiv Kumar, Mohali vs. ACIT, Chandigarh

In the result, the appeals of the assessee bearing

ITA 1325/CHANDI/2010[2006-07]Status: DisposedITAT Chandigarh30 Dec 2022AY 2006-07

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadav

Section 142Section 153

…e judgment of Hon’ble High I.T.A. No.1325,1326,1421/CHANDI/2010 I.T.A. No.274,275/CHANDI/2014 Shri Rajiv Kumar Shri Sohan Lal Arora Assessment Year: 2006-07 Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the sp…

M/S Bronze Logistics Pvt. Ltd., Ludhiana vs. DCIT, Ludhiana

The appeal of the assessee is allowed

ITA 611/CHANDI/2011[2006-07]Status: DisposedITAT Chandigarh29 Jun 2018AY 2006-07

Bench: Ms. Diva Singh & Ms. Annapurna Guptaassessment Year: 2006-07 M/S Bronze Logistics P.Ltd., Vs. The Dcit, 863 Industrial Area-A, Circle Vii, Ludhiana. Ludhiana. Pan No. : Aabcb9505H

For Appellant: Shri Ashwani Kumar, CAFor Respondent: Dr. Gulshan Raj, CIT(DR)
Section 142Section 250(6)

…The said decision, it was submitted, fully applies to the present case also. 6.10 Similar was the position, it was submitted, which had been noted by the Hon'ble Delhi High Court in the case of Delhi Development Authority & another V Union of India & another 350 ITR 432 (Del). Attention was invited to pages 13 to 42 of the Paper Book which contains copy of the said decision. In the said decision also, it was submitted, the Court in unambiguous terms held that the condition precedent for direction for special Audit is the complexity of accounts and safeguarding interests of Revenue. The conditions it was submitte…

DCIT, New Delhi vs. M/S. Unitech Ltd., New Delhi

In the result, appeal of the assessee is allowed on preliminary ground, appeal of Revenue and its CO are dismissed

ITA 6648/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Jun 2018AY 2010-11

Bench: Shri Rajpal Yadav & Shri O.P. Kantआयकर अपील सं./ Ita No. 6181/Del/2015 With Co No.376/Del/2015 & "नधा"रण वष"/Assessment Year: 2010-11 M/S.Unitech Limited Dcit, Cir.27(1) 6, Community Centre Vs New Delhi. Saket, New Delhi 17. अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Salil Aggarwal, Ar Revenue By : Shri H.K. Choudhary, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 03/05/2018 घोषणा क" तार"ख /Date Of Pronouncement : 27/06/2018 O R D E R

For Appellant: Shri Salil Aggarwal, ARFor Respondent: Shri H.K. Choudhary, CIT-DR
Section 142Section 143(3)Section 144C(4)

…test, nor would the appointment of Special Auditor merely for the purpose of examination of related supporting vouchers, bring the matter within ambit of Section 142(2A). 3.1 Infact, jurisdictional High Court in the case of PDA vs. Union of India reported in 350 ITR 432 after noting the judgment of Allahabad High Court in Swadeshi Cotton Mills Co. Ltd. v. CIT 1988 (171) ITR 634 his held as under: "11. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometimes, what appears to be complex on the face of it, may not be really so if one tries to understa…

M/S. Unitech Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee is allowed on preliminary ground, appeal of Revenue and its CO are dismissed

ITA 6181/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Jun 2018AY 2010-11

Bench: Shri Rajpal Yadav & Shri O.P. Kantआयकर अपील सं./ Ita No. 6181/Del/2015 With Co No.376/Del/2015 & "नधा"रण वष"/Assessment Year: 2010-11 M/S.Unitech Limited Dcit, Cir.27(1) 6, Community Centre Vs New Delhi. Saket, New Delhi 17. अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Salil Aggarwal, Ar Revenue By : Shri H.K. Choudhary, Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 03/05/2018 घोषणा क" तार"ख /Date Of Pronouncement : 27/06/2018 O R D E R

For Appellant: Shri Salil Aggarwal, ARFor Respondent: Shri H.K. Choudhary, CIT-DR
Section 142Section 143(3)Section 144C(4)

…test, nor would the appointment of Special Auditor merely for the purpose of examination of related supporting vouchers, bring the matter within ambit of Section 142(2A). 3.1 Infact, jurisdictional High Court in the case of PDA vs. Union of India reported in 350 ITR 432 after noting the judgment of Allahabad High Court in Swadeshi Cotton Mills Co. Ltd. v. CIT 1988 (171) ITR 634 his held as under: "11. What is complex to one may be simple to another. It depends upon one's level of understanding or comprehension. Sometimes, what appears to be complex on the face of it, may not be really so if one tries to understa…

M/S Sunder Mal Sat Pal, Mukatsar vs. DCIT, Ludhiana

The appeals of the assessee are allowed

ITA 157/CHANDI/2013[2008-09]Status: DisposedITAT Chandigarh15 Jun 2018AY 2008-09

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Ashwani KumarFor Respondent: Shri Manu Malik
Section 142Section 143(3)Section 153CSection 40A(3)

…the impugned order. The impugned order under section 142(2A) of the Act thus does not meet the requirement of law and based on the judgment of Hon’ble High Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the…

M/S Sunder Mal Sat Pal, Mukatsar vs. DCIT, Ludhiana

The appeals of the assessee are allowed

ITA 156/CHANDI/2013[2007-08]Status: DisposedITAT Chandigarh15 Jun 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Ashwani KumarFor Respondent: Shri Manu Malik
Section 142Section 143(3)Section 153CSection 40A(3)

…the impugned order. The impugned order under section 142(2A) of the Act thus does not meet the requirement of law and based on the judgment of Hon’ble High Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the…

M/S Sunder Mal Sat Pal, Mukatsar vs. DCIT, Ludhiana

The appeals of the assessee are allowed

ITA 155/CHANDI/2013[2006-07]Status: DisposedITAT Chandigarh15 Jun 2018AY 2006-07

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri. Ashwani KumarFor Respondent: Shri Manu Malik
Section 142Section 143(3)Section 153CSection 40A(3)

…the impugned order. The impugned order under section 142(2A) of the Act thus does not meet the requirement of law and based on the judgment of Hon’ble High Court of Delhi in the case of Delhi Development Authority and Another Vs. Union of India and Another (350 ITR 432) wherein it was held that an Assessing Officer is required to scrutinize the entries and verify them, but this does not require services of a special auditor or a Chartered Accountant to undertake the said exercise. Section 142(2A) is not a provision by which the Assessing Officer delegates his powers and functions, which he can perform to the…