In Brief
The Supreme Court interpreted Section 142(2C) of the Income Tax Act, 1961, concerning the power of Assessing Officers to extend time for submission of special audit reports. The Court held that even before a 2008 amendment, Assessing Officers could extend deadlines sua sponte (without a written application from the taxpayer), subject to a 180-day overall limit. The amendment was merely clarificatory, not substantive. The Court rejected the taxpayers' argument that extension required their application, finding such an interpretation would absurdly allow taxpayers to sabotage audits. The judgment overruled contrary Delhi High Court authority and restored multiple assessments to lower tribunals for reconsideration on merits."
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