Assessing Officer may, at any stage of proceeding, require assessee to get his Books of accounts specially audited under this section.
Assessing Officer can direct special audit, having regards to complexities in accounts, volume of accounts, doubt about correctness of accounts, multiplicity of transactions in the accounts & if it is in the interest of revenue (Department).
Direction can be issued with prior approval of CIT/CCIT/PCIT/PCCIT.
Read Also : Section 139(8A): Updated Return (Added by FA 2022 w.e.f. 01/04/2022)
Books of accounts audited by CA, nominated by CIT/CCIT/PCIT/PCCIT & remuneration of auditor shall be paid by Central Govt.
Direction can be given even if accounts already audited u/s 44AB or any other law.
An opportunity of being heard must be given before directing.
Audit report has to be submitted within time allowed by Assessing Officer which can be extended but maximum time must not exceed 180 days.
Special audit can be directed for particular segment of A / (c’) i.e. sales, purchase etc.
Failure to get the Books of Accounts audited under this section or failure to furnish the Audit Report within the time allowed will lead to Best Judgement Assessment under section 144 and it also attract a penalty of 10,000 under section 272A(1).
