$~40
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of Order: February 15, 2019
+ W.P.(C) 1552/2019, C.M. Appl. No. 7151-7152/2019
ORACLE INDIA PVT. LTD ..... Petitioner
Through: Mr. M.S. Syali, Senior Advocate with
Mr. Satyen Sethi, Mr. Arta Trana
Panda, Ms. Gargi Sethee, Advocates
versus
THE PRINCIPAL COMMISSIONER OF
INCOME TAX, DELHI-7, & ANR. ..... Respondents
Through: Mr. Deepak Anand, Advocate for Mr.
Zoheb Hossain, Senior Standing
Counsel for Revenue
CORAM:
HON'BLE MR. JUSTICE S. RAVINDRA BHAT
HON'BLE MR. JUSTICE PRATEEK JALAN
S. RAVINDRA BHAT, J. (ORAL)
1. Issue Notice. Mr. Deepak Anand, Advocate, appearing on behalf
of the respondent accepts notice of the petition as well as of the
application.
2. The assessee seeks orders identical with orders made in relation to
the special audits directed for Assessment Years 2015-16 and for the
subsequent years. In previous orders, the court had heard other Writ
Petitions including W.P.(C) No. 1110/2012, 2353/2013, 2500/2014,
3765/2015, 735/2017 and 3630/2016 as well as W.P.(C) No. 2251/2018,
and directed that the modified terms of reference made under Section
142(2a) shall be followed in the special audit. In the present case,
modified terms of reference have been indicated in the order of the
Assessing Officer dated 31.12.2018. The previous order of this court
passed in W.P.(C) No. 2251/2018, inter alia, was to the following effect:
W.P.(C) No. 1552/2019 Page 1 of 3
"Learned counsel for the parties, on instructions, state that
modified terms of reference for special audit are
acceptable and may be taken on record. The modified
terms of reference for the assessment years ('Ays') 2008-
2009 to 2013-2014 signed by counsel for the parties are
enclosed as annexure-A to this order and would be treated
as a part of this order.
Learned counsel for the parties also agree that the special
audit under Section 142(2A) of the Income Tax Act, 1961
would begin on 1.4.2018 with the audit for the A Y 2008-
2009. On completion of special audit for A Y 2008-2009,
special audit for the next A Y, i.e. 2009-2010 will
commence. Thereafter, on completion of the special audit
for preceding year, special audit for the succeeding year
would commence.
Learned counsel for the parties also agree that the special
audit under Section 142(2A) of the Income Tax Act, 1961
would begin on 1.4.2018 with the audit for the AY 2008-
2009. On completion of special audit for AY 2008-2009,
special audit for the next AY, i.e. 2009-2010 will
commence. Thereafter, on completion of the special audit
for preceding year, special audit for the succeeding year
would commence.
In order to ensure that there is no dispute or debate about
limitation, it is directed that the interim orders staying
special audit and assessment proceeding for the A Y 2009-
2010 and subsequent years would continue till the special
audit for the immediate preceding year is completed. This
direction is acceptable to both the petitioner and the
respondents. Interim order for the A Y 2008-2009 would
remain in force till31.3.2018.
This statement and direction is justified and necessary, as
simultaneous special audit for all years would create
difficulties, cause inconvenience and would require huge
manpower. Further, issues overlap and some issues may
not require examination in view of finding in an earlier
year. This would be an aspect to be examined and
considered by the assessing officer ('AO') and the special
auditor. The petitioner, of course, will be at liberty to
W.P.(C) No. 1552/2019 Page 2 of 3
approach the AO and the special auditor, on the basis of
the audit or the assessment orders passed for the earlier
year.
In case any issue cannot be resolved or settled, the parties
can approach the court by way of an application in the
present writ petitions. We also clarify that this consent
order would not affect the advance pricing agreement
proceedings, which are stated to be pending.
Writ petitions are accordingly disposed of, with no order as
to costs."
3. This court also clarifies that in line with the previous orders made
in all the said writ petitions, simultaneous special audit for all years will
create difficulties and also result in overlapping of some issues that may
arise during examination in all different years. The Assessing Officer
and the Special Auditor may examine these aspects also. It is open to the
petitioner/assessee to approach the AO and the special auditor on the
basis of audit and the assessment order passed in the earlier years. In the
event it is necessary to resolve any such incidental issue, the parties are
at liberty to approach this court.
4. Furthermore, the Special Auditor shall adhere to the terms of
reference (contained in the order dated 31.12.2018) while carrying out
the task assigned to him.
5. The writ petition and the application is disposed of in the above
terms.
S. RAVINDRA BHAT, J
PRATEEK JALAN, J
FEBRUARY 15, 2019
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W.P.(C) No. 1552/2019 Page 3 of 3
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