Rajesh Kumar & Ors vs D.C.I.T. & Ors

The Supreme Court addressed the validity of a special audit under Section 142(2A) of the Income Tax Act, 1961, determining that the Deputy Commissioner of Income Tax had sufficient grounds to propose such an audit due to the complexity and discrepancies in the assessee's accounts. The Court held that the approval of the Commissioner of Income Tax was justified given the evidence of unaccounted transactions and the necessity for an expert audit to ascertain the financial results for assessment. The judgment affirmed the procedural correctness of the audit process initiated by the tax authorities.