RAJESH KUMAR vs D.C.I.T. .

The Supreme Court ruled that the provisions of Section 142(2A) of the Income Tax Act, 1961 empower the assessing officer to order a special audit when the accounts of the assessee are complex and involve unaccounted transactions. The Court held that the Deputy Commissioner acted within his jurisdiction in proposing a special audit due to discrepancies found in the books of accounts, thus upholding the validity of the audit order. The appeal was dismissed, affirming the assessment proceedings initiated under Section 158BC of the Act.