LI Network
Published on: December 22, 2023 at 14:35 IST
The Delhi High Court recently ruled that the authority to extend the time for submitting audit reports under Section 142(2C) is solely vested in the Assessing Officer (AO) and cannot be exercised by the Commissioner of Income Tax (CIT).
In the case of PCIT vs. B.L. Kashyap And Sons Ltd., the appellant challenged the Income Tax Appellate Tribunal’s order dated September 30, 2020, in five appeals.
The Court examined whether the AO had the authority to grant an extension under Section 142(2C) and the nature of this power.
The bench, comprising Justice Rajiv Shakdher and Justice Girish Kathpalia, concluded that the AO possesses the exclusive jurisdiction to extend the deadline for filing audit reports.
It emphasized that this discretionary power is non-delegable and cannot be exercised by a higher authority, such as the CIT, regardless of the nature of the power.
