Enquire Now!

welcome to

Good Day, We're Income Tax Online is an initiative managed by experienced tax consultants to cater the need of small and medium enterprises, Individuals and other assessee's, those do not afford to avail the services of highly priced tax consultants to look after their income tax issues. It is a highly subsidized service platform which provides income tax consultancy at a very low price to the really needy people.

Show Cause Notice - Books of account audited under section 142(2A)

During the Income tax case proceedings, if the Income tax Officer doubts the correctness of the accounts due to nature and complexity of the accounts, volume of the accounts , multiplicity of transactions in the accounts or specialized nature of business activity of the person, than the Income tax officer directs the person to get its account audited under section 142(2A) of the Income tax Act, 1961 commonly referred as Special Audit, done by specified Chartered Accountants, who in turn will submit a Report with the Officer in a specified Form.

Before issuing directions to the person to get his accounts audited, the Income tax officer gives opportunity to the person by issuing notice to show the reason that why the accounts should not be referred for Special Audit.

Frequently Asked Questions

Section 142(2A) allows the Assessing Officer to order a Special Audit of books of account if accounts are complex or require detailed verification.

The notice is issued to give the taxpayer an opportunity to explain why their accounts should not be referred for Special Audit.

The Special Audit is conducted by a Chartered Accountant nominated by the Income Tax Department.

Failure to respond may result in the Assessing Officer proceeding with Special Audit or making assessment based on available records.

The audit must be completed within the time specified by the Assessing Officer, generally within 90 days (extendable).
Copyright © 2022 : incometaxonline.org