The effective date of an order under Section 142(2A) directing special audit is when it is communicated, which can be actual or constructive, and the communication must be satisfied before the decision is said to be conclusive or binding.

SANJIV KHANNA, J.

Nokia India Private Limited has filed the afore-stated writ petition praying for multifarious reliefs, albeit during the course of arguments primarily one contention was raised and argued; assessment proceedings for the Assessment Year 2009-10 have abated as time barred.

2. The petitioner is a company incorporated under the Companies Act, 1956 and engaged in manufacture and sale of telecommunication handsets.

3. For the Assessment Year 2009-10, the petitioner filed its return on 30th September, 2009, declaring total income of Rs.826.92 crores. The return was selected for scrutiny and notice dated 9th September, 2010 under Section 143(2) of the Income Tax Act,1961 (“Act”, for short) was issued.

4. As per the petitioner, assessment proceedings had remained dormant for nearly twenty eight months till notice dated 17th January, 2013 was issued. Petitioner was required to produce books of accounts for the first time on 28th February, 2013, barely a month before the expiry of time limit for passing the assessment order on 31st March, 2013. Petitioner submits that books of accounts and vouchers were voluminous (described as truck loads), and accordingly, the Assessing Officer had asked the petitioner to furnish books of account in a manner they could be easily examined. On 8th March, 2013, books were submitted in Systems Applications and Products (SAP) format. Trial balance in soft and hard copies was also provided. Petitioner's request to specify ledger accounts required to be produced was rejected by the Assessing Officer with the direction to produce all accounts by 11th March, 2013. Petitioner on 11th March, 2013 had submitted a soft copy of the books of accounts in Excel sheet format, including trial balance and more than 600 pages of general ledger accounts etc. In the proceedings held on 14th March, 2013 numerous queries were raised and answered by the petitioner.

5. On 21st March, 2013, ten days before expiry of time for completing assessment, the Assessing Officer issued notice under Section 142(2A) of the Act to show cause as to why accounts for the Assessment Year 2009-10 should not be audited by a special auditor. Notice was served on the petitioner vide fax on Friday, 22nd March, 2013 at 12.41 p.m. and the petitioner was required to submit its reply/objections by 12.30 p.m. on 25th March, 2013. The petitioner protested, vide submissions on 25th March, 2013, asserting that there was neither a failure to submit details nor incorrect details were furnished. It was highlighted and stressed that adequate time and opportunity had not been given to respond to the show cause notice.

6. The petitioner asserts that at 6 p.m. on 26th March, 2013, opportunity notice was received by fax from the office of the Commissioner of Income Tax, Delhi-V, the second respondent, on the proposal given by the Assessing Officer for initiation of special audit. The petitioner was required to respond by 11.30 a.m. on 28th March, 2013. The petitioner has alleged that only five pages of the draft/proposed order of the Assessing Officer were served on 26th March, 2013. Draft order of twenty two pages was served on 28th March, 2013 at 10 a.m. By letter dated 28th March, 2013, the petitioner informed the second respondent that due to paucity of time it was not possible to submit detailed objections. Request for extension of time by 3 to 5 working days was made. The second respondent had thereupon granted time to the petitioner to submit their response by 11 a.m. on 30th March, 2013.

7. The petitioner, vide their letter dated 29th March, 2013, had reiterated that due to paucity of time it was not possible to file a detailed reply to the draft order. However, preliminary objections were raised against initiation of special audit proceedings.

8. As per the respondents, notices under Section 142(1)/143(2) were issued. Reference was made to the order sheets dated 21st December, 2012 and 4th January, 2013. Subsequently, after damaging and i