Power To Extend Time For Submitting Audit Reports U/S 142(2c) Belongs Exclusively To AO And Can't Be Exercised By CIT: Delhi High Court

The Delhi High Court has held that the power to extend the time for submitting audit reports under Section 142(2c) belongs exclusively to the AO and cannot be exercised by CIT.

The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the Assessing Officer alone has the jurisdiction to extend the deadline for filing audit reports under Section 142(2C); a higher authority, such as the CIT, is not permitted to do so.

The appellant/department challenged the order of the Income Tax Appellate Tribunal (ITAT) dated September 30, 2020, in five appeals.

The issue raised was whether the Assessing Officer granted an extension under Section 142(2C) of the Income Tax Act, the nature of the power to extend time, and the validity of the Assessing Officer's actions in conformity with the Act.

The court noted that the initial exercise of the power has been explained as one that is not administrative; the CIT (A) could not have extended the time based on the recommendation of the AO. However, the enunciation of the legal principle does not derogate that since the discretionary power was vested in the AO (which was non-delegable), it could not have been exercised by the CIT, irrespective of the nature of the power.

Counsel For Appellant: Sanjeev Menon

Counsel For Respondent: Rohit Jain

Case Title: PCIT Versus B.L. Kashyap And Sons Ltd.

Citation: 2023 LiveLaw (Del) 1326

Case No.: ITA 455/2022

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